Market drops in early trade; breadth weak

The key equity benchmarks are trading weak in early trade on selling pressure in index pivotals.

At 9:30 IST, the barometer index, the S&P BSE Sensex, dropped 431.93 points or 0.74% at 58,033.96. The Nifty 50 index lost 151.60 points or 0.87% at 17,264.95.

In the broader market, the S&P BSE Mid-Cap index slipped 0.72% while the S&P BSE Small-Cap index shed 0.97%.

The market breadth was weak. On the BSE, 757 shares rose and 1,379 shares fell. A total of 92 shares were unchanged.

Economy:

As per SBI research report, India's GDP growth is likely to be around 8.1% in the second quarter of the current financial year and in the range of 9.3-9.6% during fiscal 2022.

"As per SBI's Nowcasting Model, the forecasted GDP growth for Q2 FY22 would be 8.1%, with an upward bias. The full year (FY22) GDP growth is now revised upwards to 9.3-9.6% from our earlier estimate of 8.5-9%," the research report, Ecowrap, said. The projected 8.1% growth rate in Q2 FY22 is the highest growth across all economies, it further added.

Stocks in Spotlight:

Indian Energy Exchange (IEX) rose 0.73%. The company announced the resumption in the trading of Renewable Energy Certificates (REC) with effect from 24 November 2021, after a gap of almost 16 months. The last REC trade session took place in June 2020.

Triveni Engineering & Industries advanced 2.29% after the firm announced the signing of a 10-year business agreement with GEAE Technology USA to locally manufacture the LM2500 gas turbine base and enclosure.

Mazagon Dock Shipbuilders lost 0.46%. The Indian Navy has commissioned the first ship of project 15B Class Destroyer i.e. (Vishakhapatnam) built by Mazagon Dock Shipbuilders.

Zen Technologies jumped 4.54% after the company has signed an export contract worth Rs 35 crore with one of its important Middle East customers.

Global Markets:

Asian stocks traded mixed on Tuesday, 23 November 2021 as investors watched for market reaction to U.S. President Joe Biden picking Jerome Powell for a second term as Federal Reserve chair. Markets in Japan are closed on Tuesday for a holiday.

The S&P 500 ended lower and the Nasdaq tumbled deep into negative territory on Monday after both earlier hit record highs following the announcement of a second term for Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average ended slightly higher.

Biden had been under pressure to name a more progressive Democrat, rather than keep Republican Powell in the role. Powell has guided the U.S. central bank and the country's economy through the pandemic recession, unleashing unprecedented monetary stimulus to keep financial markets afloat. His re-nomination now heads to the Senate for confirmation.

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