Barometers drop in early trade; breadth weak

The headline equity benchmarks traded with substantial losses in early trade. The Nifty dropped below the 23,400 level. Barring the IT index, all the other sectoral indices on the NSE were traded in red. Trading could be volatile due to weekly F&O series expiry today.

At 09:26 IST, the barometer index, the S&P BSE Sensex declined 419.26 points or 0.54% to 77,159.12. The Nifty 50 index lost 142.95 points or 0.61% to 23,375.55.

In the broader market, the S&P BSE Mid-Cap index shed 0.52% and the S&P BSE Small-Cap index fell 0.58%.

The market breadth was weak. On the BSE, 1,068 shares rose and 1,879 shares fell. A total of 140 shares were unchanged.

 

Foreign portfolio investors (FPIs) sold shares worth Rs 3,411.73 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,783.89 crore in the Indian equity market on 19 November 2024, provisional data showed.

Stocks in Spotlight:

Dr Reddys Laboratories (DRL) slipped 2.46% after the company informed that on Tuesday, 19 November 2024, US Food and Drug Administration (USFDA) completed its Good manufacturing practice (GMP) inspection at API manufacturing facility located in Bollaram, Hyderabad.

Garden Reach Shipbuilders & Engineers (GRSE) rose 0.79%. The company has signed a contract with the Transport Department, Government of West Bengal, for the delivery of 13 hybrid ferries for total consideration of Rs 226.18 crore.

Godrej Properties shed 0.42%. The company has announced the acquisition of a 53-acre land parcel in Joka, Kolkata. The company plans to develop a residential plotted development project on this land, with an estimated development potential of 1.3 million square feet and a revenue potential of approximately Rs 500 crore.

Numbers to Track:

The yield on India's 10-year benchmark federal paper added 1.87% to 6.938 as compared with previous close 6.810.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.4200, compared with its close of 84.4275 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.20% to Rs 76,189.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.14% to 106.53.

The United States 10-year bond yield shed 0.05% to 4.408.

In the commodities market, Brent crude for January 2024 settlement gained 17 cents or 0.23% to $72.98 a barrel.

Global Markets:

Asian markets declined on Thursday, dampened by mixed signals from Nvidia's earnings report and heightened geopolitical tensions. Investors remained cautious, with concerns over Russia-Ukraine conflict weighing on sentiment.

U.S. stocks closed mixed on Wednesday, with Target's disappointing earnings and Nvidia's tempered guidance impacting investor sentiment. While the Dow Jones Industrial Average gained 0.32%, the S&P 500 index ended flat%, and the NASDAQ Composite index fell 0.11%.

Investors were rattled by a nearly 22% slide in Target after the retailer missed expectations for its September quarter earnings. Target steadied in evening trade, although its earnings also raised some questions over weakening retail spending.

Nvidia shares fell more than 1% in aftermarket trade to around $144.0, trimming some losses after falling as much as 2% just after its earnings. Earnings per share rose to $0.81 on revenue of $35.1 billion, higher than expectations of $0.75 in EPS and $33.09 billion in revenue.

Nvidia's quarterly results, while exceeding expectations, fell short of some analysts' hopes for a more significant beat. The company's guidance for the fourth quarter, though slightly above estimates, hinted at a slower pace of revenue growth, raising questions about the sustainability of AI-driven demand. This cautious outlook tempered investor enthusiasm and contributed to the broader market's subdued performance.

Market participants are now focused on a series of U.S. economic indicators, including jobless claims, home sales data, and the Purchasing Managers' Index (PMI). Additionally, several Federal Reserve officials are scheduled to speak, providing insights into the central bank's monetary policy outlook.

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