Indian equity markets snapped an eight-day gaining streak and ended lower by over half percent on Friday amid negative cues from global counterparts and broad-based profit booking in large caps. Key gauges made a negative start and stayed in red for whole day as traders were concerned after data by the Centre for Monitoring Indian Economy (CMIE) showed that the country's unemployment rate rose to a three-month high at 8 per cent during November. The unemployment rate in urban India was higher at 8.96 per cent, while in rural areas, it was at 7.55 per cent. Some concern also came with data from the central bank showing that India's services exports and imports in October fell from the previous month. Services exports in October stood at $25.38 billion, down from $28.03 billion in September, while imports slipped to $13.49 billion from $16.12 billion a month earlier. The frontline indices extended fall in second half of session amid a private report stating that India's current account deficit (CAD) may shoot up in the July-September quarter (second quarter, or Q2) of 2022-23 (FY23), with the net export ratio touching a fresh nine-year low at 5.89 per cent of gross domestic product (GDP) in Q2. Adding some pessimism, the provisional data available on the NSE showed foreign institutional investors (FIIs) net sold shares worth Rs 1,565.93 crore on December 01. However, markets managed to trim some losses towards the end, taking support from the Finance Ministry's statement that Goods and Services Tax (GST) revenues rose by 11 per cent to about Rs 1.46 lakh crore in November over the year-ago period. This is the ninth straight month when collections from GST has remained above Rs 1.40 lakh crore. Finally, the BSE Sensex fell 415.69 points or 0.66% to 62,868.50 and the CNX Nifty was down by 116.40 points or 0.62% to 18,696.10.

The US markets ended mostly in red on Friday following the release of the Labor Department's closely watched monthly jobs report, which showed stronger than expected job growth in the month of November. The report said non-farm payroll employment jumped by 263,000 jobs in November after surging by an upwardly revised 284,000 jobs in October. Street had expected employment to shoot up by 200,000 jobs compared to the addition of 261,000 jobs originally reported for the previous month. Meanwhile, the Labor Department said the unemployment rate held at 3.7 percent in November, unchanged from October and in line with Street estimates. While the report points to continued strength in the labor market, the data has added to lingering uncertainty about the outlook for interest rates. The Federal Reserve is likely to slow the pace of interest rate hikes as early as next month, but continued labor market tightness may still lead the central bank to raise rates higher than currently anticipated. The Fed's two-day meeting will be held on December 13-14, in which the central bank is expected to slow to a 50 basis point interest rate hike from the 75 basis point hikes seen in recent months. On the sectoral front, Semiconductor stocks recovered from their worst levels of the day, but the Philadelphia Semiconductor Index still fell by 1.2 percent. Banking and computer hardware stocks also moved to the downside, while tobacco, steel and oil service stocks rallied.

Crude oil futures ended lower on Friday with cut of over a percent as troubling U.S. manufacturing data and uncertainty over the outcome of Sunday's the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting weighed on prices. Some pessimism also came in following reports that the European Union agreed on a price cap of $60 for Russian seaborne oil, and there are expectations that this would have little impact. Benchmark crude oil futures for January delivery declined $1.24 or 1.5 percent at $79.98 a barrel on the New York Mercantile Exchange. Brent crude for February delivery lost $1.31 or 1.5 percent to settle at $85.57 a barrel on London's Intercontinental Exchange.

Indian rupee concluded weaker against dollar on Friday on account of continued dollar demand from importers and banks and lackluster trend in domestic equities. Traders were concerned after data from the central bank showed that India's services exports and imports in October fell from the previous month. Services exports in October stood at $25.38 billion, down from $28.03 billion in September, while imports slipped to $13.49 billion from $16.12 billion a month earlier. On the global front, dollar was pinned near 16-week lows against a basket of major currencies on Friday ahead of key U.S. labour market data, while the yuan was set for its biggest weekly gain since China revalued its currency in 2005. Finally, the rupee ended at 81.35 (Provisional), weaker by 9 paise from its previous close of 81.26 on Thursday.

The FIIs as per Friday's data were net sellers in equity segment, while net buyers in debt segment. In equity segment, the gross buying was of Rs 7931.43 crore against gross selling of Rs 9406.61 crore, while in the debt segment, the gross purchase was of Rs 649.32 crore against gross selling of Rs 583.06 crore. Besides, in the hybrid segment, the gross buying was of Rs 1.17 crore against gross selling of Rs 6.05 crore.

The US markets ended mostly in red on Friday as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Asian markets are trading mostly in green on Monday as China relaxed virus testing rules in some cities, signaling more easing may come in the nation, which has been under strict Covid-related restrictions for more than two years. Indian markets snapped their eight-day gains on Friday and ended lower amid weak global cues ahead of the release of US jobs data. Today, the start new week is likely to be in green following positive cues from Asian counterparts.  Market participants will be eyeing services PMI data to be out later in the day. Traders will be getting encouragement as Economic Advisory Council member Sanjeev Sanyal said India is capable of sustaining an economic growth of 9 per cent for many years, even as he asserted that a high sustained GDP growth rate is key for the world to achieve the 2030 Sustainable Development Goals (SDGs). Sentiments will get a boost after pulling out money from Indian equities market in the past two months, FPIs made a strong come back in November with a net investment of Rs 36,329 crore on weakening of the US dollar index and positivity about overall macroeconomic trends. Some support will come as the Reserve Bank of India's (RBI) weekly statistical supplement showed India's foreign exchange reserves rose for the third straight week, to $550.14 billion in the week through November 25. For the week ended November 18, the country's reserves were at $547.25 billion. Traders may take note of the SBI Research's latest Ecowrap report stating that even as central banks across several countries continue to hike their interest rates to cap rising inflation, India stands like an oasis in this era of uncertainty. Compared to developed economies like the US, UK and Germany, the report shows India has done markedly better be it cost of living, food prices or even energy costs. Also, all eyes will be on RBI Monetary Policy Committee meeting starting today. The outcome of the meeting will come on December 07. There are expectations that the Reserve Bank of India MPC is likely to announce a 35 basis points (bps) rate hike. There will be some buzz in sugar industry stocks as industry body ISMA said India's sugar production has increased marginally to 47.9 lakh tonnes in the October-November period. Sugar marketing year runs from October to September. Banking stocks will be in focus as the Reserve Bank said Indian banking system's outstanding credit grew by 16.96 per cent for the fortnight ended November 18. It said the bank credit grew to Rs 133.29 lakh crore for the fortnight ended November 18 this year as against Rs 113.96 lakh crore on November 19, 2021. There will be some reaction in coal industry stocks with a private report that domestic coal production went up by 17.13 per cent to 524.20 million tonnes during April-November 2022 as compared 447.54 million tonnes of production recorded during the corresponding period of last year.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• Tata Motors has reported 21.36% rise in total sales at 75,478 units in November 2022 as compared to 62,192 units during November 2021.
• Hero MotoCorp has sold 390,932 units of two-wheelers in November 2022, a growth of 12% over the November 2021, when the company had sold 349,393 units. 
• Mahindra & Mahindra has reported a 56 per cent rise in domestic passenger vehicles sales at 30,392 units in November 2022. 
• ICICI Bank has launched a STACK for companies in real estate sector to offer solutions to their banking requirements on one platform.