Market Commentary - Mid-Session
Nifty fails to hold 24,200 level; European mkt advance As on : 25-Nov-24  13:36

The equity barometers pared some gains in the afternoon trade. The Nifty traded below the 24,200 level after hitting the day's high of 24,351.55 in mid-morning trade. All the sectoral indices on the NSE were traded in green with PSU Bank, Oil & gas and realty shares gaining the most.

At 13:25 IST, the barometer index, the S&P BSE Sensex, rallied 833.40 points or 1.05% to 79,951.69. The Nifty 50 index added 287.40 points or 1.20% to 24,195.50.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index advanced 1.79% and the S&P BSE Small-Cap index jumped 1.74%.

The market breadth was strong. On the BSE, 2,827 shares rose and 1,133 shares fell. A total of 189 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.

Gainer & Losers:

Oil and Natural Gas Corporation (ONGC) (up 5.27%), Bharat Electronics Limited (BEL) (up 4.98%), Adani Enterprises (up 4.37%), Larsen & Toubro (up 3.84%) and Bharat Petroleum Corporation (BPCL) (up 3.78%) were major Nifty gainers.

JSW Steel (down 2.85%), Infosys (down 0.91%), HCL Technologies (down 0.82%), HDFC Life Insurance Company (down 0.71%), Tech Mahindra (down 0.45%) were major Nifty losers.

Stocks in Spotlight:

Central Bank of India jumped 7.13% after the Reserve Bank of India (RBI) approved the banks entry in the insurance business through a joint venture with Generali group under FGIICL and FGILICL.

UPL rose 1.19% after the company signed strategic partnership agreement with CH4 Global to bring the latter's methane-reducing feed supplement, 'Methane Tamer' to millions of cattle per day.

Escorts Kubota gained 3.12% after its wholly owned subsidiary, Escorts Kubota Finance is intending to commence its business activities of non-banking financial institution from 26 November 2024.

Dhanuka Agritech gained 1.25% after the company signed an agreement with Bayer AG, Germany, for the acquisition of the crop protection active ingredients, Iprovalicarb and Triadimenol, along with the trademark Melody for Iprovalicarb.

Wardwizard Innovations & Mobility advanced 2.89% after the company signed a memorandum of understanding (MoU) with Ampvolts to develop advanced EV charging infrastructure in India and abroad.

Bliss GVS Pharma rose 0.95%. The company's Maharashtra-based facilities received a GMP compliance certificate from the National Agency for Medicines and Medical Devices of Romania post an EU GMP inspection.

Global Markets:

The Dow Jones index futures were up 239 points, signaling a strong opening for U.S. stocks today.

European market advanced while Asian stocks traded mixed 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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