Benchmarks rise for 3rd session, Nifty ends at 18,512.75; VIX at 13.33

November 25,2022

The key equity indices ended with small gains on Friday, rising for the fourth trading session. Gains were restricted due to negative Asian cues. After hitting the day's low of 18,445.10 in morning trade, the Nifty 50 index hovered in the red for most part of the session. However, fag-end buying pushed the index to the day's high of 18,534.90 in late trade. Media, realty and auto shares advanced while FMCG, banks and financial stocks declined.

The barometer index, the S&P BSE Sensex, rose 20.96 points or 0.03% to 62,293.64. The Nifty 50 index added 28.65 points or 0.16% to 18,512.75. In four consecutive sessions, the Sensex rose 1.88% while the Nifty advanced 1.94%.

The benchmark S&P BSE Sensex hit fresh record high at 62,447.73 while the Nifty 50 index hit a 52-week high of 18,534.90 on Friday. The Nifty Bank index also registered its fresh record high today at 43,339.15.

HDFC Life Insurance Company (up 2.68%), Tata Motors (up 2.61%) and Hero MotoCorp (up 1.43%) were top Nifty gainers today.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.77% and the S&P BSE Small-Cap index rose 0.69%.

The market breadth was strong. On the BSE, 2,119 shares rose, and 1,386 shares fell. A total of 127 shares were unchanged.

Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.07% to 13.33.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper rose to 7.303 compared with 7.255 at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.66, compared with its close of 81.70 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement declined 0.26% to Rs 52,535.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.14% to 105.96.

The United States 10-year bond yield shed 0.04% to 3.705.

In the commodities market, Brent crude for January 2023 settlement rose $1.29 or 1.51% to $86.70 a barrel.

Global Markets:

European shares advanced while most Asian stocks declined on Friday amid concerns over rising Covid cases in China and inflation in Japan.

Inflation in the euro area will hover around its current level over the next few months before starting to decline at some point during the first half of 2023, European Central Bank Vice President Luis de Guindos said on Thursday. Speaking at a financial event in Milan, de Guindos said inflation was likely at its peak or anyway close to it.

China's Central Bank said on Friday it would cut the amount of cash that banks must hold as reserves for the second time this year, releasing about 500 billion yuan ($69.8 billion) in long-term liquidity to bolster the slowing economy.

The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for banks by 25 basis points, effective from 5 December 2022.

Markets in the US were closed for the Thanksgiving holiday on Thursday and will close early on Friday.

Stocks in Spotlight:

One 97 Communications (Paytm) surged 5.38% after foreign broker maintained 'Buy' on the stock with a target price of Rs 1,055 per share. The Paytm stock slumped 19.27% in the past four sessions. It hit a record low of Rs 439.60 on 24 November 2022.

Paytm has gained market share in digital payments versus PayU, the broker said adding that the company is trading at 5x FY24e EV/contribution profits. The broker acknowledged overhang risks from further selling by existing pre-IPO shareholders. However, it added that fintech is a competitive space but at these valuations, risks are overdone.

Punjab National Bank (PNB) jumped 5.41% and UTI Asset Management Company jumped 7.86%. PNB has received approval of DIPAM, Ministry of Finance, Government of India for divestment of bank's entire/part stake in UTI Asset Management Company in single or multiple tranches for realization of gain on investment. The timeline for making the divestment is yet to be finalized.

Engineers India advanced 1.45% after the company secured an order from Mangalore Refinery & Petrochemicals (MRPL) for preparation of basic engineering design package (BDEP), detailed feasibility report (DFR) and pre-project activities for bio-ATF plant at MRPL.

Adani Enterprises declined 0.48%. The company on Friday (25 November 2022) announced that its board has approved fund raising by way of further public offering (FPO) through fresh issue of equity shares, aggregating up to Rs 20,000 crore. The company said that it will seek shareholders approval for the FPO by way of postal ballot process.

State Bank of India (SBI) shed 0.31%. A meeting of the Executive Committee of the Central Board of SBI is scheduled to be held on 29 November 2022 to seek approval for raising of Infrastructure Bonds up to an amount of Rs. 10,000 crore (including a green shoe option of Rs. 5,000 crores) through a public issue or private placement, during FY23.

Chennai Petroleum Corporation (CPCL) rose 0.85% and Indian Oil Corporation (IOCL) advanced 1.8%. CPCL, IOCL and seed equity partners have signed a joint venture agreement for the upcoming grass root 9 MMTPA refinery and petrochemicals project at Nagapattinam in Tamil Nadu.

Allcargo Logistics rose 0.77%. The company said that its wholly owned subsidiary Allcargo Belgium N.V. has entered into share purchase agreement with NBG Logistik Beteiligungs- und Beratungsges. mbH to acquire 75% stake in Fair Trade GmbH Schiffahrt, Handel und Logistik.

Castrol India (CIL) added 0.31%. The company announced collaboration with ki Mobility Solutions to strengthen Indian automotive aftermarket ecosystem.

Va Tech Wabag shed 0.34%. The company announced that its board approved the proposal for fund raising by way of issuance of non-convertible debentures upto Rs 200 crore to Asian Development Bank (ADB) on a private placement basis. The issue could be done in one or more tranches/series, subject to necessary approvals, permissions, consents and sanctions as may be required. The tenure of the debentures is 5 years and 3 months.

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