Market drifts higher in early trade, breadth strong

The headline equity indices were trading firm in early trade on buying demand in index pivotals. Positive global cues boosted the investors sentiment. The Nifty traded above the 18,850 mark. IT, metal and financial services were in demand while auto and FMCG index declined.

At 09:29 IST, the barometer index, the S&P BSE Sensex, was up 355.51 points or 0.56% to 63,455.16. The Nifty 50 index gained 98.55 points or 0.53% to 18,856.90.

The two benchmarks hit all-time highs in early trade today at 18,887.60 for Nifty 50 index and 63,583.07 for Sensex.

In the broader market, the S&P BSE Mid-Cap index rose 0.20% while the S&P BSE Small-Cap index added 0.54%.

The market breadth was strong. On the BSE, 1,970 shares rose and 749 shares fell. A total of 111 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 9,010.41 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 4,056.40 crore in the Indian equity market on 30 November, provisional data showed.

Investors cheered after the Federal Reserve Chair Jerome Powell indicated that the US central bank plans to slow its aggressive pace of interest rate hikes as soon as next month. Powell suggested that the US central bank is preparing to raise its benchmark rate by 0.5% points when its monetary policy committee gathers in December, after a string of 0.75-points increase.

Economy:

Indian economy recorded 6.3% annual growth rate in July-September after double-digit surge in the previous quarter. Ministry of Statistics and Programme Implementation (MoSPI) released India's economic growth data for the second quarter of the current financial year (FY23). India's gross domestic product or GDP grew by 6.3% in Q2 on a year-on-year basis. In other words, it was 6.3% more than the GDP in the same months in 2021. MoSPI also reported that India's Gross Value Added (or GVA) in Q2 grew by. 5.6% on a year on year basis. Chief economic adviser V Anantha Nageswaran said that the GDP growth for the full fiscal year is likely to be 6.8%-7%.

Stocks in Spotlight:

Wipro gained 2.03% after the IT major announced the launch of Wipro Data Intelligence Suite, a one-stop solution for accelerating cloud modernization and data monetization, focused on modernizing data estates, including data stores, pipelines and visualizations, running on Amazon Web Services (AWS).

Zydus Lifesciences rose 0.38%. The drug maker has received final approval from the United States Food and Drug Administration (USFDA) to market Topiramate extended-release capsules, 25 mg, 50 mg, 100 mg, 150 mg, and 200 mg (USRLD: Qudexy XR extended-release capsules).

Tamilnad Mercantile Bank (TMB) added 1.81%. The bank has been authorized as an Agency Bank for undertaking Government Business by RBI.

KPI Green Energy shed 0.66%. The power generation company said that the board of directors of the company has recommended issue of bonus shares in the ratio of 1 (one) bonus equity share against 1 (one) existing equity shares.

Hatsun Agro Product jumped 9.37%. The meeting of the board of directors of the company is scheduled on 3 December 2022 to consider, discuss and decide the terms and conditions and other related matters in connection with the rights issue of equity shares, including the determination of rights issue price, issue size, rights entitlement ratio, record date etc.

Sanghi Industries advanced 2.76%. A meeting of the board of directors of the company is scheduled to be held on 3 December 2022 to consider and evaluate the proposal for raising of funds.

Global Markets:

Asian stocks were trading higher, carrying on the optimism behind Wall Street's rally as Federal Reserve Chair Jerome Powell confirmed smaller rate hikes could start in December.

The Caixin/Markit Manufacturing Purchasing Managers' Index for China came in at 49.4, higher than expectations. The reading marks a fourth consecutive month of contraction, after a reading of 49.2 from October and dipping to 48.1 in September.

South Korea's revised gross domestic product for the third quarter confirmed growth of 3.1% compared to the same period a year ago - higher than a 2.9% expansion seen in the second quarter. The economy saw slower quarterly growth of 0.3% in the third quarter, following a growth of 0.7% in the previous period.

Wall Street ended sharply higher on Wednesday after Federal Reserve Chair Jerome Powell said the central bank might scale back the pace of its interest rate hikes as soon as December.

Federal Reserve Chair Jerome Powell on Wednesday said it was time to slow the pace of coming interest rate hikes while also signaling a protracted economic adjustment to a world where borrowing costs will remain high, inflation comes down slowly and the United States remains chronically short of workers.

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