Benchmarks turn range bound; auto shares advance for 6th day

The frontline equity indices continued to extend gains in mid-morning trade. The Nifty hovered above the 20,000 level. Auto stocks saw buying demand for sixth straight day.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 424.03 points or 0.64% to 66,598.23. The Nifty 50 index gained 127.30 points or 0.64% to 20,017.

In the broader market, the S&P BSE Mid-Cap index rose 0.82% while the S&P BSE Small-Cap index gained 0.41%.

The market breadth was strong. On the BSE, 2,089 shares rose and 1,433 shares fell. A total of 145 shares were unchanged.

Buzzing Index:

The Nifty Auto index gained 1.12% to 17,395.35. The index added 3.68% in six trading sessions.

Hero MotoCorp (up 2.95%), Samvardhana Motherson International (up 2.72%), Mahindra & Mahindra (up 2.38%), Tube Investments of India (up 1.76%), TVS Motor Company (up 1.42%), Bosch (up 1.37%), Bharat Forge (up 1.36%), Balkrishna Industries (up 0.86%), MRF (up 0.84%) and Bajaj Auto (up 0.81%) edged higher.

Stocks in Spotlight:

Global Health declined 0.33%. The company announced that Sanjeev Kumar has resigned from the position of chief financial officer (CFO) of the company due to personal reason. The last working date will be close of business hours, 15 December 2023.

Yatharth Hospital & Trauma Care Services dropped 10.14% following an order from the Commissionerate of Sagar Sambhag, Madhya Pradesh to take over the premises of Ramraja Hospital, citing government ownership.

Solar Industries India rose 0.20%. The company said that ICRA has reaffirmed the rating at "[ICRA] A1+� on the commercial paper of the company, amounting to Rs 100 crore.

Global Markets:

Most of the Asian shares declined as investors assess comments from the U.S. Federal Reserve board members and digest Australia�s October inflation figures.

Australia�s weighted inflation rate for October slowed more than expected, coming in at 4.9%. This was also lower than the 5.6% seen in September. The overall inflation rate stood at 4.8%, its lowest level since January 2022.

On Tuesday, Federal Reserve Governor Christopher Waller said he was growing more confident that policy was in a place now to bring inflation back under control. However, he maintained that inflation was still too high. Waller also said the Fed might start lowering rates if inflation continues to ease over the next three to five months. In contrast, Governor Michelle Bowman said more rate hikes will likely be needed as evolving dynamics keep inflation elevated.

US stocks rose Tuesday, resuming their November rally, as comments from a Federal Reserve official raised hope that the central bank may not need to raise interest rates further.

Investors will focus this week on the Fed`s preferred measure of inflation on Thursday and euro zone consumer inflation figures for further clarity on the where inflation is headed. Fed Chair Jerome Powell is due to speak on Friday. His words will be scrutinized by traders to gauge where rates may head.

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