Benchmarks end with minor gains after hitting record highs; oil & gas stocks outperform

November 28,2022

The domestic equity barometers ended with minor gains after a volatile session on Monday. The equity benchmarks failed to hold on to higher levels as profit booking emerged. The Sensex and the Nifty hit record high levels today amid falling crude oil prices. IT, banks and financial stocks were in demand. However, metals, realty and consumer durables stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 211.16 points or 0.34% to 62,504.80. The Nifty 50 index added 50 points or 0.27% to 18,562.75.

The two benchmarks hit fresh all-time highs in intraday today at 18,614.25 for Nifty 50 index and 62,701.40 for Sensex.

In the broader market, the S&P BSE Mid-Cap index rose 0.72% while the S&P BSE Small-Cap index added 0.77%.

The market breadth was positive. On the BSE, 2,093 shares rose, and 1,501 shares fell. A total of 190 shares were unchanged.

Economy:

S&P Global Ratings on Monday has reportedly cut India's economic growth forecast for current fiscal year to 7%, but said the domestic demand-led economy will be less impacted by the global slowdown.

S&P had in September projected the Indian economy to grow 7.3% in 2022-23 and 6.5% in next fiscal year (2023-24).

Global Markets:

In the commodities market, Brent crude for January 2023 settlement dropped $2.32 or 2.77% to $81.39 a barrel, following reports of unrest in China over Covid control measures imposed in that country. China is the world's biggest crude importer.

The Dow Jones index futures were down 197 points, indicating a weak opening in the US stock market today.

Shares in Europe and Asia mostly declined on Monday as investors monitored unrest in China as protests against strict Covid measures and lockdowns erupted over the weekend.

Fears about a Covid-led dent to China's economic growth weighed on sentiment in the world's second-largest economy after demonstrators and police clashed in Shanghai on Sunday.

Over the weekend, the People's Bank of China announced it would cut the reserve requirement ratio for banks by 25 basis points to 7.8% and inject around 500 billion yuan in long-term liquidity. The National Bureau of Statistics said industrial profits for the first 10 months of the year fell 3% from the same period in 2021.

In Singapore, the country's core inflation rate eased 0.2% to 5.1% in October on an annualized basis, the Ministry of Trade and Industry (MTI) reported - after seeing the same index at 5.3% in September.

U.S. stocks ended mixed in a shortened trading session Friday, with markets subdued following Thursday's Thanksgiving holiday.

Black Friday sales kicked off against the backdrop of high inflation and cooling economic growth. US shoppers reportedly spent a record $9.12 billion online this Black Friday, as consumers weathered the squeeze from high inflation and grabbed steep discounts on everything from smartphones to toys.

Buzzing Index:

The Nifty Oil & Gas index rose 1.60% to 8,549.95. The index has added 4.24% in five sessions.

Hindustan Petroleum Corporation (up 5.46%), Bharat Petroleum Corporation (up 5.1%), Indian Oil Corporation (up 3.89%), Reliance Industries (up 3.41%) and Indraprastha Gas (up 2.96%) were the top gainers.

Among the other gainers were Gujarat Gas (up 2.43%), Mahanagar Gas (up 2.03%), Oil India (up 1.45%) and Petronet LNG (up 1%).

On the other hand, Gujarat State Petronet (down 2.46%), Adani Total Gas (down 1.58%) and Aegis Logistics (down 1.04%) turned lower.

Stocks in Spotlight:

Hero MotoCorp rose 2.38%. The two-wheeler maker will make an upward revision in the ex-showroom prices of its motorcycles and scooters, effective from 1 December 2022. The price increase will be up to Rs 1500 and the exact quantum of increase will vary by specific models and markets.

Indian Energy Exchange (IEX) fell 1.70%. The board of IEX on Friday, 25 November 2022, approved a share buyback of upto Rs 98 crore at a price not exceeding Rs 200 per share through open market route.

Max Financial Services (MFSL) advanced 2.64%. MFSL will purchase Mitsui Sumitomo Company (MSI)'s balance 5.17% Max Life Insurance Company (Max Life) stake at Rs 85 per share.

Va Tech Wabag added 4.58%. The company has signed an agreement with Asian Development Bank (ADB) towards raising Rs 200 crore through unlisted non-convertible debentures (NCD) carrying a 5 years and 3 months tenor which will be subscribed by ADB over a 12-month period.

Larsen & Toubro rose 0.08%. The EPC company announced that the hydrocarbon division of L&T Energy business has been awarded significant contracts. The company said that the business has received India's first contract for decommissioning of offshore facilities from British Gas Exploration and Production India (BGEPL, part of Shell Plc Group of companies).

TARC rose 1.46%. The company announced the receipt of occupation certificate (OC) for its premium residential project, TARC Maceo, Sector-91, Gurugram.

Aditya Birla Fashion and Retail added 0.68%. The company said that TMRW, an Aditya Birla Group venture, has announced partnership with 8 Digital-First lifestyle brands. TMRW has struck partnerships with the new-age founders within few months of the launch of the venture. It is on a path to create a leading technology-led digital first 'House of Brands' business over the next several years. With these 8 brands on board, TMRW has achieved a revenue run-rate of Rs 700 crore plus and is on a path to cross an annual revenue rate of Rs 1500 crore plus in the next 12 months.

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