Benchmarks trade with decent gains; media shares advance

December 01,2022

The key equity barometers traded with decent gains in early afternoon trade. Positive global cues boosted the investors sentiment. The Nifty hovered near the 18,850 mark. Media shares extended gains for third consecutive session. Trading is expected to be volatile due to expiry of weekly index options on the NSE.

At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 317.87 points or 0.50% to 63,417.52. The Nifty 50 index gained 90.90 points or 0.48% to 18,849.25.

The two benchmarks hit all-time highs in early trade today at 18,887.60 for Nifty 50 index and 63,583.07 for Sensex. Further, the Nifty Bank index also registered its fresh record high today at 43,515.05.

In the broader market, the S&P BSE Mid-Cap index added 0.69% while the S&P BSE Small-Cap index rose 1%.

The market breadth was strong. On the BSE, 2,194 shares rose and 1,179 shares fell. A total of 155 shares were unchanged.

Investors cheered after the Federal Reserve Chair Jerome Powell indicated that the US Central Bank could slow down its pace of interest rate hikes going forward, starting as soon as next month.

Economy:

Indian economy recorded 6.3% annual growth rate in July-September after double-digit surge in the previous quarter. Ministry of Statistics and Programme Implementation (MoSPI) released India's economic growth data for the second quarter of the current financial year (FY23). India's gross domestic product or GDP grew by 6.3% in Q2 on a year-on-year basis. In other words, it was 6.3% more than the GDP in the same months in 2021. MoSPI also reported that India's Gross Value Added (or GVA) in Q2 grew by. 5.6% on a year on year basis.

Meanwhile, India's eight core sectors' output growth almost turned flat in October, coming at just 0.1% from 7.8% in September, with cement and refinery products slipping into contraction. The Index of Core Industries released by the Commerce and Industry Ministry, which constitutes about 40% of the Index of Industrial Production (IIP), was unchanged month-on-month at 138.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.60% to 13.45. The Nifty 29 December 2022 futures were trading at 18,975.05, at a premium of 125.8 points as compared with the spot at 18,849.25.

The Nifty option chain for the 29 December 2022 expiry showed maximum Call OI of 34.2 lakh contracts at the 19,000 strike price. Maximum Put OI of 39.2 lakh contracts were seen at 18,000 strike price.

Buzzing Index:

The Nifty Media index rose 1.88% to 2,156.30. The index has added 2.78% in three sessions.

Network 18 Media & Investments (up 10.87%), TV18 Broadcast (up 9.69%), Hathway Cable & Datacom (up 2.92%), Inox Leisure (up 1.83%) and Nazara Technologies (up 1.47%) were the top gainers. Among the other gainers were PVR (up 1.37%), Sun TV Network (up 0.69%), Zee Entertainment Enterprises (up 0.68%).

Stocks in Spotlight:

Larsen & Toubro rose 1.04%. The EPC major on Thursday announced that it has closed a three-year $107 million sustainability-linked loan (SLL) from Sumitomo Mitsui Banking Corporation (SMBC) on 30 November 2022.

VST Tillers Tractors added 1.11%. The company's total sales slipped 4.81% to 2,592 units in November 2022 from 2,723 units sold in November 2021.

Alembic Pharmaceuticals gains 0.41%. The company said that it has received final approval from the US Food & Drug Administration for its abbreviated new drug application for Diclofenac Sodium Topical Solution. It is indicated for the treatment of the pain of osteoarthritis of the knee(s). Diclofenac Sodium Topical Solution USP, 2% w/w has an estimated market size of US$512 million for twelve months ending Sep 2022 according to IQVIA.

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