Market Commentary - Mid-Session
Barometers trade with strong gains; PSU bank shares advance As on : 22-Nov-24  11:34

The headline equity benchmarks traded with significant gains in mid-morning trade. The Nifty traded above the 23,500 level. PSU bank shares advanced after decling in past two consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex gained 547.09 points or 0.72% to 77,714.46. The Nifty 50 index rose 173.23 points or 0.74% to 23,523.15.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.47% and the S&P BSE Small-Cap index rallied 0.62%.

The market breadth was strong. On the BSE, 2,302 shares rose and 1,369 shares fell. A total of 164 shares were unchanged.

Economy:

Surging new business gains and export sales boosted output growth across India's private sector economy in November, the latest HSBC 'flash' PMI survey compiled by S&P Global showed.

The HSBC Flash India Composite Output Index stood at 59.5 in November as compared with 59.1 in recorded in October, indicating a sharp rate of expansion that was the strongest in three months and above its long-run average.

The HSBC flash India services PMI business activity index stood 59.2 in November as against 58.5 in October 2024.

The HSBC India Manufacturing PMI data stood at 57.3 in November, down marginally from 57.5 in October.

The HSBC Flash India Manufacturing PMI Output Index fell to 60.2 in November as against 60.4 in October 2024

Pranjul Bhandari, Chief India Economist at HSBC, said: 'India's flash composite PMI moderately expanded from a final reading of 59.1 in October to 59.5 this month. Services saw a pick-up in growth, while the manufacturing sector managed to outperform expectations despite a marginal slowdown from its October final PMI reading. Strong end-demand and improving business conditions pushed services sector employment to the highest level ever recorded by this indicator since December 2005. Meanwhile, price pressures are rising for raw materials used by manufacturers, as well as food and wage costs in the services sector.'

IPO Update:

The initial public offer (IPO) of Enviro Infra Engineers received bids for 1,32,88,873 shares as against 3,07,93,600 shares on offer, according to stock exchange data at 11:20 IST on 22 November 2024. The issue was subscribed 0.43 times.

The issue opened for bidding on 22 November 2024 and it will close on 26 November 2024. The price band of the IPO is fixed between Rs 140 to Rs 148 per share. An investor can bid for a minimum of 101 equity shares and in multiples thereof.

The initial public offer (IPO) of NTPC Green Energy received bids for 60,23,04,174 shares as against 59,31,67,575 shares on offer, according to stock exchange data at 11:20 IST on 22 November 2024. The issue was subscribed 1.02 times.

The issue opened for bidding on 19 November 2024 and it will close on 22 November 2024. The price band of the IPO is fixed between Rs 102 to Rs 108 per share. An investor can bid for a minimum of 138 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index jumped 2.13% to 6,453.30. The index dropped 3.26% in past two consecutive trading sessions.

Bank of Baroda (up 3.11%), Punjab National Bank (up 2.87%), State Bank of India (up 2.81%), Bank of Maharashtra (up 2.52%) and Canara Bank (up 2.51%) were the top gainers. Among the other gainers were Central Bank of India (up 1.36%), Punjab & Sind Bank (up 1.32%), Union Bank of India (up 1.29%), Indian Overseas Bank (up 1.06%) and UCO Bank (up 0.67%) advanced.

Global Markets:

Most Asian stocks advanced on Friday, buoyed by Wall Street's gains and a tempered reaction to Nvidia Corp.'s revenue outlook. Bitcoin continued its upward move, nearing the $100,000 mark, while the US dollar strengthened.

Japan's manufacturing sector contracted for the fifth consecutive month in November, as indicated by the preliminary au Jibun Bank flash PMI, which fell to 49.0 from 49.2 in October.

Japan's October consumer price index (CPI) data revealed a slight uptick in headline inflation and a further rise in core inflation, surpassing the Bank of Japan's 2% target. This development fuels expectations of additional interest rate hikes.

US equities closed higher on Thursday, though tech stocks continued to face pressure following Alphabet's decline due to regulatory concerns. Uncertainty surrounding interest rates persisted, fueled by slightly elevated jobless claims and cautious remarks from Federal Reserve officials.

At the close in NYSE, the Dow Jones Industrial Average rose 1.06%, while the S&P 500 index gained 0.53%, and the NASDAQ Composite index gained 0.04%.

On the economic front, weekly jobless claims fell to 213,000 for the week ending 16th November, down from 219,000 the previous week. This data signals ongoing strength in the U.S. labour market.

Alphabet Inc. shares declined 0.4% in after-hours trading following a 4.7% drop during the regular session on Thursday. The Department of Justice (DOJ) has proposed that Google divest its Chrome web browser to mitigate its dominance in online search. Additionally, the DOJ recommended that Google share its data and search results with competitors and potentially sell its Android operating system. These recommendations follow a recent court ruling that declared Google's online search monopoly illegal.

The broader tech sector was also impacted by Nvidia's mixed third-quarter results. While the company exceeded earnings expectations on strong AI demand, it forecast a slower revenue growth rate for the current quarter.

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