Market Commentary - Mid-Session
Nifty trades above 24,150; consumer durables shares advance As on : 02-Dec-24  11:38

The key equity indices traded with small gains in mid-morning trade. The Nifty traded above the 24,150 mark. Consumer Durables shares extended gains for the second consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex was up 17.09 points or 0.02% to 79,819.88. The Nifty 50 index added 26.25 points or 0.11% to 24,157.35.

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 rallied 0.63%.

The market breadth was positive. On the BSE, 2,352 shares rose and 1,476 shares fell. A total of 201 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.

Meanwhile, India's foreign exchange (forex) reserves fell for an eighth consecutive week to hit a multi-month low of USD 656.582 billion in the week that ended on November 22, data from the Reserve Bank of India (RBI) showed.

IPO Update:

The initial public offer (IPO) of Suraksha Diagnostic received bids for 23,80,408 shares as against 1,34,32,533 shares on offer, according to stock exchange data at 11:15 IST on 02 December 2024. The issue was subscribed 0.18 times.

The issue opened for bidding on 29 November 2024 and it will close on 3 December 2024. The price band of the IPO is fixed between Rs 420 to Rs 441 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Consumer Durables index gained 1.41% to 40,739.45. The index rallied 2.39% in two consecutive trading sessions.

Dixon Technologies (India) (up 5.55%), Crompton Greaves Consumer Electricals (up 2.03%), Voltas (up 1.73%), Kalyan Jewellers India (up 1.58%), Kajaria Ceramics (up 1.01%), Bata India (up 0.86%), Havells India (up 0.76%), Century Plyboards (India) (up 0.65%), Titan Company (up 0.55%) and Amber Enterprises India (up 0.52%) advanced.

On the other hand, Cera Sanitaryware (down 1.17%), Blue Star (down 1.08%) and Whirlpool of India (down 1.08%) edged lower.

Stocks in Spotlight:

TVS Motor rose 1.07% after the two-wheeler maker's total sales jumped 10.16% to 401,250 units in November 2024 as against 364,231 units sold in the month of November 2023.

Eicher Motors shed 0.37%. The company's unlisted subsidiary, VE Commercial Vehicles (VECV) reported 7.3% year on year growth in commercial vehicles (CV) sales to 5,574 units in November 2024.

Global Markets:

Most Asian stocks advanced on Monday after US shares rose Friday as global markets enter a seasonally strong period.

Meanwhile, Chinese economic data pointed to a mixed picture. The country's factory activity expanded in November as the official manufacturing index picked up. However, the non-manufacturing sector slipped slightly. The value of new home sales fell last month from a year earlier to 363 billion yuan ($50 billion), reversing October gains. The stock market benchmark'CSI 300'closed Friday's session with gains of 1.14%.

US stock indices surged to record highs on Friday, driven by positive economic indicators and expectations of a Federal Reserve rate cut in December.

The S&P 500 rose 0.6% to a record high of 6,032.4 points, while the Dow Jones Industrial Average rose 0.4% to a peak of 44,910.65 points. The NASDAQ Composite rose 0.8% to 19,218.17 points, but remained below recent record highs.

Trump on Sunday threatened to impose '100% tariffs' on the BRICS bloc of countries, which includes China. Trump criticized the bloc's attempts to form its own currency and shift away from the U.S. dollar, threatening to cut the bloc off from U.S. trade over the move. He called for commitments to the dollar from the bloc.

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