Market Commentary - Mid-Session
Barometers trade with decent gains; HDFC Life gains over 2% As on : 04-Dec-24  13:39

The benchmark indices traded with modest gains in the afternoon trade. The Nifty traded above the 24,500 level. PSU bank, realty and financial services shares edged higher. On the other hand, auto, metal and pharma stocks corrected.

At 13:30 IST, the barometer index, the S&P BSE Sensex was up 145.56 points or 0.18% to 80,991.31. The Nifty 50 index added 60.90 points or 0.25% to 24,518.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.67% and the S&P BSE Small-Cap index rallied 0.59%.

The market breadth was positive. On the BSE, 2,314 shares rose and 1,544 shares fell. A total of 146 shares were unchanged.

The three-day meeting of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) begins today, 4 December 2024 and will conclude on 6 December 2024. The outcome of the meeting will be announced by RBI Governor Shaktikanta Das on 6 December 2024.

Gainers& Losers:

HDFC Life Insurance Company (up 2.39%), Apollo Hospitals Enterprise (up 1.79%), HDFC Bank (up 1.71%), Tata Consultancy Services (up 1.55%) and SBI Life Insurance Company (up 1.50%) were major Nifty gainers.

Bharti Airtel (down 2.19%), Powergrid (down 2.05%), Cipla (down 1.93%), Adani Ports (down 1.52%), Tata Motors (1.48%) were major Nifty losers.

Economy:

India posted a strong 58.4 services PMI in November 2024, down only a fraction from the prior month's 58.5. During November, services sector employment notably grew at the fastest pace ever recorded since this survey began in 2005. The hiring surge reflected the sector's improving business confidence, growing new orders, and vigorous international demand. At the same time, high food and labour costs drove up input and output prices to their fastest rates in 15 months and nearly 12 years respectively.

Finally, service providers were more confident regarding the year-ahead outlook for business activity. Confidence reached its highest level since May, boosted by predictions of continued demand strength and expectations that marketing efforts will drive new business.

Meanwhile, the HSBC India Composite Output Index posted 58.6 in November, down only marginally from 59.1 in October and therefore indicating a sharp rate of expansion. The goods producing sector recorded the larger slowdown in growth but still posted a faster increase than that see in the service economy. The same trend was evident for new orders.

Service providers signaled sharper cost pressures than manufacturers and subsequently recorded the steeper increase in selling prices.

Stocks in Spotlight:

Wipro rose 0.86%. The company announced partnership with Netskope, a secure access service edge (SASE) leader, to provide cybersecurity optimization advisory services to global enterprises.

Oil & Natural Gas Corporation (ONGC) shed 0.04%. The company has invested Rs 10,000 crore in its subsidiary, ONGC Petro Additions (OpaL) via right issue.

Aditya Birla Capital declined 0.23%. The company invested Rs 300 crore in its subsidiary, Aditya Birla Housing Finance (ABHF), on a right basis.

Wonderla Holidays jumped 8.72% after the company announced that its board has approved the opening of the issue of qualified institutional placement (QIP) of equity shares with a floor price of Rs 827.85 per share.

Suzlon Energy rallied 3.65% after the company announced that it has expanded its partnership with Jindal Renewables after another order win from one of its subsidiaries.

Global Market:

The Dow Jones index futures were up 144 points, signaling a positive opening for U.S. stocks today.

Most of European and Asian stocks traded higher on Wednesday, except for South Korea, following a surprising decision by President Yoon Suk Yeol to impose martial law. The decision was reversed just hours later, but it still unsettled global markets.

The benchmark Kospi Index dropped as much as 2% in early Wednesday trading, reflecting the sharp decline in South Korea-related assets during overnight sessions.

Yoon Suk Yeol's attempt to impose martial law on Wednesday was short-lived and met with significant resistance. Lawmakers defied security forces and voted against the declaration, while thousands of protesters took to the streets, expressing opposition to the unprecedented move.

In the US, indices reached record highs on Tuesday, driven by gains in major technology stocks, though the pace of the rally appeared to be slowing due to growing uncertainty about the economic outlook. The S&P 500 edged up 0.1% to close at 6,049.88, while the NASDAQ Composite rose 0.4% to finish at 19,478.89. In contrast, the Dow Jones Industrial Average dipped 0.2% to 44,705.53.

Technology stocks continued to benefit from optimism surrounding artificial intelligence, a sector expected to maintain robust momentum in the months ahead. Additionally, the prospect of lower interest rates provided further support for the tech-heavy market.

Meanwhile, investors are eyeing this week's critical jobs data and Federal Reserve Chair Jerome Powell's upcoming remarks for potential signals on whether the Fed will consider cutting rates in December.

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