Indices trade with modest gains; IT shares slide

The benchmark indices continued to trade in a narrow range with moderate gains in mid-afternoon trade. The Nifty hovered above the 20,250 mark. IT shares saw a bit of selling pressure for second consecutive trading session.

At 14:30 AM IST, the barometer index, the S&P BSE Sensex, was up 476.19 points or 0.71% to 67,464.63. The Nifty 50 index added 132.60 points or 0.66% to 20,265.75.

The benchmark, Nifty50 index hit a fresh all-time high at 20,291.55.

In the broader market, the S&P BSE Mid-Cap index gained 0.95% while the S&P BSE Small-Cap index advanced 0.69%. The S&P BSE Mid-Cap index and S&P BSE Small-Cap index has hit an all time high of 34,631.35 and 40,718.81.

The market breadth was strong. On the BSE, 2,237 shares rose and 1,466 shares fell. A total of 135 shares were unchanged.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers� Index (PMI) in November improved to 56 from October`s eight-month low of 55.5, indicating a stronger improvement in operating conditions. The reading was below the average for the second fiscal quarter (57.9), but outpaced the series trend.

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: �India�s manufacturing industry maintained its robust performance in November, with output regaining growth momentum. Firms� ability to secure new business, both domestically and from abroad, remained central to the success of the sector.�

Meanwhile, India�s gross domestic product (GDP) grew 7.6% YoY during the July-September 2023 quarter (Q2 FY24) as compared with the 6.2% growth recorded a year ago, according to the latest official data released on Thursday. India�s economy had grown 7.8% in the April-June 2023 quarter.

The central government`s fiscal deficit widened to Rs 8.04 lakh crore in April-October from Rs 7.02 lakh crore in April-September, data released by the Controller General of Accounts on November 30 showed. At Rs 8.04 lakh crore, the fiscal deficit for the first seven months of the current financial year accounts for 45% of the full-year target of Rs 17.87 lakh crore.

Separately, the combined Index of Eight Core Industries (ICI) increased by 12.1% (provisional) in October 2023 as compared to the Index of October 2022. The production of all eight core industries recorded positive growth in October 2023 over the corresponding month of last year.

Buzzing Index:

The Nifty IT index fell 0.13% to 32,539. The index declined 0.21% in two trading sessions.

Wipro (down 1.32%), Coforge (down 0.87%), HCL Technologies (down 0.74%), Infosys (down 0.35%) slipped.

On the other hand, LTIMindtree (up 1.16%) ,L&T Technology Services (up 0.86%) and Tata Consultancy Services (up 0.41%) advanced.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.01% to 7.280 as compared with previous close 7.279.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3350, compared with its close of 83.3775 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement added 0.01% to Rs 62,567.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.10% to 103.39.

The United States 10-year bond yield slipped 0.76% to 4.314.

In the commodities market, Brent crude for January 2024 settlement declined 29 cents or 0.36% to $80.57 a barrel.

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