Nifty tad below 19,750; oil & gas shares snap 2 day rally

The key equity indices traded with minor cuts in the mid-afternoon trade. The Nifty traded a tad below the 19,750 mark. Oil & gas shares declined after witnessing buying demand in the past two consecutive trading sessions.

At 14:28 IST, the barometer index, the S&P BSE Sensex, was down 102.16 points or 0.15% to 65,880.32. The Nifty 50 index lost 16.65 points or 0.08% to 19,748.55.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 0.26% while the S&P BSE Small-Cap index rose 0.31%. The S&P BSE Mid-Cap index and S&P BSE Small-Cap index hit record high of 33,423.33 and 39,690.72 in intraday today.

The market breadth was positive. On the BSE, 1,968 shares rose and 1,731 shares fell. A total of 143 shares were unchanged.

Economy:

Reserve Bank of India or RBI has announced some regulatory measures towards consumer credit and bank credit to NBFCs. The high growth seen in consumer credit and increasing dependency of NBFCs on bank borrowings were highlighted by Governor in the interactions with MD/CEOs of major banks and large NBFCs in July and August 2023, respectively.

The central bank noted that as per extant instructions applicable to commercial banks, consumer credit attracts a risk weight of 100%. On a review, it has been decided to increase the risk weights in respect of consumer credit exposure of commercial banks (outstanding as well as new), including personal loans, but excluding housing loans, education loans, vehicle loans and loans secured by gold and gold jewellery, by 25 percentage points to 125%.

Buzzing Index:

The Nifty Oil & Gas index fell 0.87% to 8,102.25. The index jumped 2.18% in the past two trading session.

Oil & Natural Gas Corpn (down 2.78%), Hindustan Petroleum Corporation (down 2.26%), Oil India (down 1.91%), Indian Oil Corporation (down 1.49%) and Bharat Petroleum Corporation (down 1.19%), Petronet LNG (down 0.81%), Adani Total Gas (down 0.66%), Mahanagar Gas (down 0.43%), Gujarat State Petronet (down 0.4%) and GAIL (India) (down 0.08%) declined.

On the other hand, Gujarat Gas (up 0.69%), Aegis Logistics (up 0.38%) and Indraprastha Gas (up 0.33%) advanced.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper fell 0.47% to 7.198 as compared with previous close 7.232.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.2675, compared with its close of 83.2300 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement added 0.22% to Rs 60,853.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.06% to 104.41.

The United States 10-year bond yield declined 1.25% to 4.387.

In the commodities market, Brent crude for January 2024 settlement gained 24 cents or 0.31% to $77.66 a barrel.

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