Indices drift higher in early trade; breadth strong

The key equity indices traded with small gains in early trade. The Nifty traded above the 20,100 level. Pharma, media and PSU Bank stocks advanced while metal, realty and oil& gas shares declined. Trading could be volatile due to November F&O series expires today.

At 09:30 AM IST, the barometer index, the S&P BSE Sensex, was up 30.25 points or 0.05% to 66,932.16. The Nifty 50 index added 14.10 points or 0.07% to 20,110.70.

In the broader market, the S&P BSE Mid-Cap index gained 0.13% while the S&P BSE Small-Cap index advanced 0.26%. The S&P BSE Mid-Cap index and S&P BSE Small-Cap index has hit an all time high of 34,073.13 and 40,172.46.

The market breadth was strong. On the BSE, 1,736 shares rose, and 1,063 shares fell. A total of 134 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 71.91 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,360.81 crore in the Indian equity market on 29 November, provisional data showed.

India`s gross domestic product (GDP) for the third quarter will be released today, 30 November 2023. The infrastructure output data for October will be released on the same day.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.01% to 7.253 as compared with previous close 7.252.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3025, compared with its close of 83.3250 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement added 0.03% to Rs 62,621.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.04% to 102.81.

The United States 10-year bond yield slipped 0.06% to 4.269.

In the commodities market, Brent crude for January 2024 settlement declined 5 cent or 0.06% to $83.05 a barrel.

Politics:

On the political front, all eyes are set on exit poll results. The exit polls results for all the five states � Rajasthan Madhya Pradesh, Mizoram, Chhattisgarh and Telangana � will be declared after the voting ends in Telangana on Thursday. The assembly elections in these five states were held between November 7 and November 30. The counting of votes will be held on December 3. The state polls are being considered as a semi-final before the 2024 assembly elections.

Stocks in spotlight:

UltraTech Cement rose 1.66%after the company has acquired a 0.54 mtpa cement grinding assets of Burnpur Cement, located at Patratu in Jharkhand at a consideration of Rs.169.79 crore. The company�s capacity in India now stands at 133 mtpa.

Metro Brands rallied 5.84% and FSN E-Commerce Ventures advanced 1.80% after the Foot Locker, Inc., the New York-based specialty athletic retailer, announced the signing of a long-term licensing agreement with both the companies. This partnership will offer the most comprehensive selection of global sportswear and footwear to sneaker fans in India.

Global markets:

Asian stocks fell across the board on Thursday ahead of key economic data from the region. China�s factory activity shrank for a second straight month in November. The official manufacturing purchasing managers� index fell slightly to 49.4 in November from 49.5 in October, according to data from the National Bureau of Statistics released Thursday.

Retail sales rose in Japan, but at the slowest pace so far this year, while industrial output during the same month increased more than expected. Official data showed Japan retail sales rose 4.2% last month. Japan�s factory output gained 1.0% in October.

South Korea�s central bank held its benchmark policy rate at 3.5% for the seventh meeting in a row, in line with expectations. In its announcement, the Bank of Korea said that �although inflation has been elevated than previously expected, it is projected to continue its underlying trend of a slowdown.�

US stocks remained near the flat line on Wednesday, even as the U.S. economy grew more than expected. GDP in the third quarter accelerated at a 5.2% annualized pace, above the initial estimate of 4.9%.

Investors will focus 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.

Oil prices settled more than 1% higher on Wednesday as futures contracts gain momentum ahead of key OPEC meeting on Thursday. OPEC and its allies, OPEC+, are set to hold a virtual meeting on production cuts.

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