Indices edge higher; breadth strong

The key equity indices traded with minor gains in early trade. The Nifty traded above the 20,950 level. Media, realty and PSU bank stocks advanced while pharma and auto shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 38.71 points or 0.06% to 69,864.31. The Nifty 50 index added 7.85 points or 0.04% to 20,977.25.

In the broader market, the S&P BSE Mid-Cap index added 0.38% while the S&P BSE Small-Cap index gained 0.72%.

The market breadth was strong. On the BSE, 2,238 shares rose and 755 shares fell. A total of 152 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 3,632.30 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 434.02 crore in the Indian equity market on 8 December, provisional data showed.

Stocks in Spotlight:

REC shed 0.10%. The company announced that it has signed a loan agreement worth 200 million euro with the German bank KfW. This is REC�s sixth line of credit under Indo-German Development Cooperation, which the firm will utilize to re-finance investments in the distribution infrastructure of DISCOMs in alignment with the Revamped Distribution Sector Scheme (RDSS) of the Government of India.

Mazagon Dock Shipbuidlers rallied 4.09% afte the company announced that it has received an order worth Rs 1,145 crore from Oil and Natural Gas Corporation (ONGC) for the replacement of the pipeline.

Dr. Reddy`s Laboratories declined 5.87% after the company informed that the United States Food & Drug Administration (USFDA) issued a Form 483 with three observations after the inspection conducted at R&D centre in Hyderabad.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose 0.23% to 7.283 as compared with previous close 7.266.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3725, compared with its close of 83.4000 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement shed 0.17% to Rs 62,611.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.02% to 104.04.

The United States 10-year bond yield declined 0.14% to 4.241.

In the commodities market, Brent crude for February 2024 settlement rose 48 cents or 0.63% to $76.32 a barrel.

Global Market:

Asian stocks are mostly trading higher on Monday as investors assessed November inflation numbers from China, which declined at a faster-than-expected pace.

November inflation numbers from China showed a faster-than-expected decline in consumer prices. The consumer price index fell 0.5% year-on-year. The producer price index fell 3% year-on-year, compared with October�s 2.6% drop.

US stocks hit a new high for the year on Friday after the November jobs report and University of Michigan consumer survey data signaled a resilient economy and cooling inflation, fueling hopes for a so-called soft-landing scenario.

November�s nonfarm payrolls report showed an unexpected drop in unemployment. The jobless rate fell 3.7%. The US economy added 199,000 jobs during November, from 150,000 added in October.

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