Market Commentary - Mid-Session
Nifty opens above 24,300; Sensex zooms 1,294 pts As on : 25-Nov-24  09:37

The key equity benchmarks traded with strong gains in early trade. The market rallied on the BJP-led NDA's strong Maharashtra election performance. Additionally, macroeconomic indicators, including GDP and infrastructure output, will garner significant attention. Participants remain focused on FII fund flows, given their ongoing selling spree. The Nifty traded above the 24,300 level. All the sectorial indices on NSE were in the green with PSU bank, oil & gas and realty shares gaining the most.

At 09:30 IST, the barometer index, the S&P BSE Sensex, soared 1,294.09 points or 1.64% to 80,400.93. The Nifty 50 index surged 409.35 points or 1.71% to 24,316.16.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index added 1.82% and the S&P BSE Small-Cap index gained 2.08%.

The market breadth was strong. On the BSE, 2,549 shares rose and 324 shares fell. A total of 120 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,278.37 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,722.15 crore in the Indian equity market on 19 November 2024, provisional data showed.

Economy:

India's foreign exchange reserves declined $17.761 billion, reaching $657.892 billion for the week ended November 15, as reported by the RBI on Friday.

In the prior week ending November 8, the forex declined $6.477 billion to $675.653 billion.

Foreign currency assets decreased by $15.548 billion to $569.835 billion for the week ended November 15, according to latest released data.

The central bank also reported that gold reserves reduced by $2.068 billion to $65.746 billion during this period. It also indicated that Special Drawing Rights (SDRs) decreased by $94 million to $18.064 billion.

Additionally, India's reserve position with the IMF also declined by $51 million, reaching $4.247 billion in the reporting week.

Stocks in Spotlight:

Zaggle Prepaid Ocean Services (Zaggle) fell 0.45%. The company has entered into a partnership agreement with Golden Jasraj Music Platforms to launch a co-branded prepaid card.

H.G. Infra Engineering rallied 5.82% after the company has announced that it has received a Letter of Award (LoA) from NTPC Vidyut Vyapar Nigam for a battery energy storage systems project under the tariff-based global competitive bidding process.

Cochin Shipyard added 2.97% after the company informed that it has entered into a memorandum of understanding (MoU) with Seatrium Letourneau USA, Inc. (SLET) for the design and critical equipment for jack-up rigs for the Indian market.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.27% to 6.937 as compared with previous close 6.850.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.3750, compared with its close of 84.4100 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement fell 1.14% to Rs 76,729.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.62% to 106.89.

The United States 10-year bond yield declined 1.50% to 4.344.

In the commodities market, Brent crude for January 2024 settlement lost 38 cents or 0.51% to $74.79 a barrel.

Global Markets:

The Dow Jones index futures were up 255 points, signaling a strong opening for U.S. stocks today.

Asian stocks advanced on Monday as investors awaiting a slew of economic data this week including China industrial data and India's third-quarter GDP numbers.

Other economic data this week include South Korea central bank's rate decision due Wednesday.

October inflation readings from Australia are also out Wednesday, and November inflation numbers from Japan's capital city of Tokyo will be released on Friday. Tokyo's inflation figures are widely considered a leading indicator of nationwide trends.

On Friday, US stocks moved higher as industries poised to benefit from the incoming administration's pro-business and deregulation policies outperformed. The Dow Jones Industrial Average led major indices, gaining nearly 1% to close at 44,296.51 points. Meanwhile, the S&P 500 added 0.35% to finish at 5,969.30 points, and the NASDAQ Composite rose more modestly, inching up by 0.16% to 19,003.65 points.

Among individual stocks, Boeing Co. surged over 4%, boosting the broader industrials sector. The aircraft manufacturer's gains came after it secured a $2.39 billion contract modification from the US Department of Defense.

Economic data released Friday pointed to steady momentum in the US economy. The S&P Global Manufacturing PMI for November rose slightly to 48.8 from October's 48.5, signaling a slower contraction. Meanwhile, the more critical Services PMI jumped to 57.0 from October's 55.0, reflecting robust activity in the services sector. These figures, coupled with last week's strong jobless claims data, reinforce the view of a relatively healthy US economy.

Looking ahead, Asian traders will focus on key economic indicators this week. Japan's inflation data will be closely scrutinized after Bank of Japan Governor Kazuo Ueda hinted that December's policy meeting could bring significant developments. Additionally, the Reserve Bank of New Zealand is expected to announce a rate cut on Wednesday, a move that could impact regional financial markets.

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