Benchmarks trade with minor gains; PSU banks in demand

The domestic equities were trading with modest gains in morning trade. At 10:30 IST, the barometer index, the S&P BSE Sensex, rose 187.90 points or 0.32% at 58,852.23. The Nifty 50 index gained 66.40 points or 0.38% at 17,569.75.

In the broader market, the S&P BSE Mid-Cap index added 0.32% while the S&P BSE Small-Cap index advanced 1.16%.

The market breadth was strong. On the BSE, 2,285 shares rose and 731 shares fell. A total of 125 shares were unchanged.

As per provisional data available on the NSE, foreign institutional investors (FIIs) net sold shares worth Rs 4,477.06 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,412.05 crore in the Indian equity market on 23 November 2021.

Meanwhile, Securities and Exchange Board of India (Sebi) postponed the implementation of the 50% cash-margin rule for futures and options (F&O) traders and credit-default swaps (CDS) segment to 28 February 2022, from the earlier deadline of 1 December 2021. The regulator cited investor interest, and market regulation and development as reasons for the deferment, in its recently issued circular.

Buzzing Index:

The Nifty PSU Bank index rose 1.55% to 2,792.05. The index added 3.97% in two trading sessions.

Indian Overseas Bank (IOB) (up 11.11%), Central Bank of India (CBI) (up 10.22%), Bank of Maharashtra (up 5.64%), Indian Bank (up 3.05%) and Bank of India (up 2.74%) were the top gainers in the PSU Bank segment.

The media reported that the government is proposing to privatise Indian Overseas Bank and Central Bank of India. The government is also proposing banking amendments for winter session to enable public sector bank privatization, reports added.

Stocks in Spotlight:

Escorts (up 0.76%) and Vodafone Idea (up 3.31%) - are under the F&O ban for 24 November 2021. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Larsen & Toubro (L&T) gained 0.24%. On Tuesday, the construction major announced that it signed a Memorandum of Understanding (MoU) with Tamil Nadu Government to establish a data center at Kanchipuram, Tamil Nadu. As part of the MoU, L&T will establish 90 MW capacity data centers and associated units in a phased manner in Kanchipuram over the next 5 years. The company envisages to employ around 1,100 people (600 direct and 500 indirect) in the project. The Government of Tamil Nadu will provide uninterrupted power supply and other infrastructure support on a best-effort basis that will bring tangible economic and social benefits to the people of Tamil Nadu.

Bharti Airtel advanced 2.17%. Moody's Investors Service has revised Bharti Airtel's (Bharti) and its subsidiary Bharti Airtel Int'l (Netherlands) B.V.'s rating outlook to positive from stable. At the same time, Moody's has affirmed Bharti's Ba1 corporate family rating (CFR) and senior unsecured rating, as well as the Ba1 rating on the backed senior unsecured notes issued by Bharti Airtel Int'l (Netherlands) B.V.

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