Market Commentary - Mid-Session
Barometers erase losses; broader mrkt outperforms As on : 02-Dec-24  10:36

The domestic equity benchmarks reversed all early losses and traded with minor gains in morning trade. The Nifty traded above the 24,150 mark. Private bank shares declined after advancing in the past trading session.

At 10:30 IST, the barometer index, the S&P BSE Sensex rose 31.29 points or 0.04% to 79,834.08. The Nifty 50 index lost 31.95 points or 0.13% to 24,163.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.37% and the S&P BSE Small-Cap index added 0.49%.

The market breadth was positive. On the BSE, 2,279 shares rose and 1,428 shares fell. A total of 207 shares were unchanged.

Economy:

The HSBC India Manufacturing PMI showed a substantial improvement in the health of the sector during November, despite downward movements in most of its subcomponents. Positive demand trends contributed to sharp expansions in sales and output, though growth was somewhat restricted by competitive conditions and price pressures. The latest results showed that a quicker upturn in cost burdens sparked the steepest rise in selling prices in over 11 years

The seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) fell from 57.5 in October to a joint 11-month low of 56.5 in November, signaling a softer improvement in the sector's health. However, the pace of growth remained above its long-term average.

Pranjul Bhandari, Chief India Economist at HSBC, said: India recorded a 56.5 manufacturing PMI in November, down slightly from the prior month, but still firmly within expansionary territory. Strong broad-based international demand, evidenced by a four-month high in new export orders, fuelled the Indian manufacturing sector's continued growth. At the same time, however, the rate of output expansion is decelerating due to intensifying price pressures. Input prices for a variety of intermediate goods ' including chemicals, cotton, leather, and rubber ' rose in November, while output prices soared to an eleven-year high as rising input, labour, and transportation costs were passed on to consumers.

Buzzing Index:

The Nifty Private Bank index slipped 0.40% to 25,225.80. The index rose 0.37% in the past trading session.

RBL Bank (down 2.06%), Federal Bank (down 1.56%), IndusInd Bank (down 1.38%), City Union Bank (down 1.17%), HDFC Bank (down 0.88%), Bandhan Bank (down 0.59%), Axis Bank (down 0.32%) and Kotak Mahindra Bank (down 0.26%) declined.

Stocks in Spotlight:

Rail Vikas Nigam (RVNL) added 1.56% after the company announced that it has emerged as the lowest bidder for a distribution infrastructure development project worth Rs 642.56 crore from Punjab State Power Corporation (PSPCL).

KEC International rose 1.07% after the company announced that it has secured multiple orders worth Rs 1,040 crore in its Transmission and Distribution (T&D) business in international markets.

Cochin Shipyard was locked in upper circuit of 5% after the company announced that it has signed a contract worth Rs 1,000 crore with the Ministry of Defence (MoD), Government of India.

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