The domestic equity benchmarks concluded Wednesday's trading session with modest gains, marking their fourth consecutive day of upward momentum. The Nifty 50 index managed to hold above the 24,450 level. PSU banks, realty and financial services stocks were in demand. However, FMCG and auto shares declined. The Nifty 50 remained volatile throughout the day as investors adopted a cautious approach ahead of the Reserve Bank of India's (RBI) upcoming monetary policy announcement. While a positive sentiment prevailed for a significant portion of the session, profit-booking in select heavyweight stocks capped the upside potential.
The S&P BSE Sensex was up 110.58 points or 0.14% to 80,956.33. The Nifty 50 index added 10.30 points or 0.04% to 24,467.45.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 0.83% and the S&P BSE Small-Cap index rose 0.68%.
The market breadth was positive. On the BSE, 2,384 shares rose and 1,582 shares fell. A total of 104 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.53% to 14.45.
The three-day meeting of the Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) began 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.
Economy:
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India posted a strong 58.4 services PMI in November 2024, down only a fraction from the prior months 58.5. 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.
Numbers to Track:
The yield on India's 10-year benchmark federal grew 1.21% to 6.795 compared with the previous close of 6.824.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.7525 compared with its close of 84.6825 during the previous trading session.
MCX Gold futures for 5 December 2024 settlement shed 0.10% to Rs 76,825.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 106.49.
The United States 10-year bond yield added 0.69% to 4.252.
In the commodities market, Brent crude for February 2025 settlement declined 53 cents or 0.72% to $74.15 a barrel.
Global Markets:
The Dow Jones index futures were up 217 points, signaling a strong opening for U.S. stocks today.
Most European stocks traded higher on Wednesday as investors awaited the latest developments in a week of political upheaval in France and investors will keep an eye on Fed Chair Jerome Powells speech later in Wednesday's session.
The HCOB Eurozone Composite PMI Output Index dropped to 48.3 in November, down from 50.0 in the previous month.
The HCOB Eurozone Services PMI Business Activity Index fell below the 50.0 no-change mark for the first time since January, registering a value of 49.5 in November, down from 51.6 in October. This decline signaled the first contraction in service sector output in ten months, although the overall decrease was marginal.
Half an hour later, S&P Global released the UK Composite PMI data. The seasonally adjusted S&P Global UK PMI Composite Output Index registered at 50.5 in November, down from 51.8 in October. Despite the decline, the index remained above the neutral 50.0 threshold for the thirteenth consecutive month.
The seasonally adjusted S&P Global UK Services PMI Business Activity Index registered 50.8 in November, down from 52.0 in October. This marked the lowest reading in 13 months.
Asian stocks ended mixed on Wednesday following South Korean President Yoon Suk Yeol's surprising decision to impose martial law, a move that he reversed just hours later, unsettling 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.
Chinas Caixin Services Purchasing Managers Index (PMI) dropped to 51.5 for the month of November from 52.0 the month prior, according to the survey.
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.
Meanwhile, investors are eyeing this weeks critical jobs data and Federal Reserve Chair Jerome Powells upcoming remarks for potential signals on whether the Fed will consider cutting rates in December.
Stocks in Spotlight:
The Nifty PSU Bank index surged 2.25% to 7,134.35. The index rallied 4.91% in two consecutive trading sessions.
UCO Bank (up 12.79%), Indian Overseas Bank (up 8.52%), Punjab & Sind Bank (up 7.65%), Central Bank of India (up 7.6%), Bank of Maharashtra (up 3.64%), Indian Bank (up 3.64%), Bank of India (up 3.36%), Canara Bank (up 3.31%), Bank of Baroda (up 2.27%) and Punjab National Bank (up 1.88%) advanced.
Wipro rose 0.84%. The company announced partnership with Netskope, a secure access service edge (SASE) leader to optimize and improve cybersecurity outcomes for people, processes, and technology investments.
Eicher Motors shed 0.97%. The company announced that its division, Royal Enfield, commenced operations of its new CKD (completely knocked down) assembly facility in Thailand.
Cyient DLM slipped 2.46%. The company said that it has signed a memorandum of understanding (MoU) with Arcedo Systems to establish a 500 kWp rooftop solar power plant at Cyient DLMs Mysore facility.
Oberoi Realty jumped 5.13% to Rs 2164.30 after a foreign brokerage firm initiated coverage on the stock with a "Buy" rating and a price target of Rs 2,500.
RattanIndia Enterprises rallied 5.29% after its wholly owned subsidiary, Revolt Motors, reported a 197% surge in vehicle sales to 1,994 units in November 2024 as compared to 671 units sold in November 2023.
PB Fintech gained 3.51% after the companys board approved the incorporation of a wholly owned subsidiary (WOS), subject to approval of Ministry of Corporate Affairs.
Epack Durable slipped 2.35% after the company informed that officials from Customs conducted six-hour search at its manufacturing unit in Bhiwadi, Rajasthan.
Wonderla Holidays jumped 7.90% to Rs 893.25 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.
Swan Energy soared 12.32% after the company announced the resumption of operations at its shipyard, Reliance Naval and Engineering Limited (RNEL).
Steelman Telecom hit an upper circuit of 20% after the company received a work orders worth of Rs 147 crores from Reliance Projects & Property Management Services (Jio) for maintenance of specific wireless communication networks.
Suzlon Energy rallied 3.53% after the company announced that it has expanded its partnership with Jindal Renewables after another order win from one of its subsidiaries.
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