Market Commentary - Mid-Session
Barometers turn rangebound; oil & gas shares gain As on : 25-Nov-24  11:34

The key equity benchmarks continued to trade with robust gains in a narrow range in mid-morning trade after the outcomes of the Maharashtra elections. The Nifty traded above the 24,300 level. Oil & gas shares extended gains for the second consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, soared 1,268.02 points or 1.60% to 80,379.76. The Nifty 50 index surged 419.30 points or 1.75% to 24,326.55.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index added 2.01% and the S&P BSE Small-Cap index gained 1.94%.

The market breadth was strong. On the BSE, 2,972 shares rose and 900 shares fell. A total of 177 shares were unchanged.

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.

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.

IPO Update:

The initial public offer (IPO) of Enviro Infra Engineers received bids for 15,22,24,473 shares as against 3,07,93,600 shares on offer, according to stock exchange data at 11:20 IST on 25 November 2024. The issue was subscribed 4.94 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.

Buzzing Index:

The Nifty Oil & Gas index rose 3.66% to 11,067.50. The index added 3.65% in two consecutive trading sessions.

Hindustan Unilever (down 1.39%), ITC (down 1.12%), Britannia Industries (down 1.11%), Tata Consumer Products (down 1.09%), Dabur India (down 0.49%), Colgate-Palmolive (India) (down 0.46%), Nestle India (down 0.46%), Godrej Consumer Products (down 0.4%), Radico Khaitan (down 0.23%) and Procter & Gamble Hygiene and Health Care (down 0.22%) edged lower.

On the other hand, Varun Beverages (up 2.45%), United Spirits (up 1.74%) and United Breweries (up 1.65%) edged higher.

Stocks in Spotlight:

Rites soared 7.49% after the company informed that it has received a revised estimate of Rs 532 crore for an electrification project under the Northeast Frontier Railway.

Rail Vikas Nigam (RVNL) jumped 5.57% after its joint venture (JV), RVNL-SCPL received letter of acceptance (LoA) worth Rs 837.67 crore from Eastern Railway.

H.G. Infra Engineering rallied 4.84% after the company informed that it has received a Letter of Award from NTPC Vidyut Vyapar Nigam for a battery energy storage systems project under the tariff-based global competitive bidding process.

Global Markets:

The Dow Jones index futures were up 254 points, signaling a strong opening for U.S. stocks today.

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

On Monday, Singapore released its inflation figures for October. Singapore saw its headline inflation rate fall to 1.4%, the lowest rate of inflation since March 2021.

Looking ahead, October inflation readings from Australia are due 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.

China on Monday kept its medium-term lending rate steady as the country's central bank seeks to stabilize the Yuan, which has come under pressure following Donald Trump's victory in the U.S. presidential election.

The People's Bank of China kept the medium-term lending facility rate unchanged at 2.0% on 900 billion yuan ($124.26 billion) worth of one-year loans to some financial institutions, according to the bank's official statement.

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.

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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