Nifty trade above 18,650 level; auto shares decline for 3rd day

The key equity indices continued to trade with limited losses in mid-afternoon trade. The Nifty traded above the 18,650 mark. Auto shares edged lower for third consecutive session.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 118.5 points or 0.19% to 62,750. The Nifty 50 index added 24.55 points or 0.13% to 18,671.55.

In the broader market, the S&P BSE Mid-Cap index shed 0.01% while the S&P BSE Small-Cap index added 0.28%.

The market breadth was positive. On the BSE, 2063 shares rose and 1484 shares fell. A total of 201 shares were unchanged.

Investor sentiment took a hit after November US payrolls report instilled expectations that the US Fed would stick to its rate hike path to combat the high inflation. Nonfarm payrolls climbed more than anticipated by 263,000, while wage growth ran higher despite recessionary pressures ahead.

Meanwhile, oil prices rose sharply on Monday, thanks to relaxations of strict Covid measures in China, while the OPEC kept production steady at its latest meeting.

The Reserve Bank of India (RBI) is all set for its bi-monthly policy review with the Monetary Policy Committee (MPC) meeting starting today. The bi-monthly policy review is expected to come out on 7 December 2022. More than the quantum of rate hikes, domestic investors would watch out for the Central Bank's commentary as it ramps up its efforts to curb inflation and push growth.

On the political front, Gujarat Assembly Elections will be closely watched. The second phase of polling is being held today, 5 December 2022. The first phase of assembly polls in Gujarat was held on 1 December 2022. The results will be declared on 8 December 2022.

Economy:

Indian services firms continued to benefit from accommodative demand conditions in November. New business inflows rose markedly and at the quickest pace in three months, supporting a sharp expansion in output and further job creation. There was another substantial increase in input costs, the second-fastest since July, which underpinned the strongest upturn in selling charges in just under five-and-a-half years.

Rising from 55.1 in October to 56.4 in November, the seasonally adjusted S&P Global India Services PMI Business Activity Index indicated a sharp increase in output that was the quickest in three months. Survey participants linked the latest expansion to demand strength, successful marketing and a sustained upturn in sales.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.216 as compared with 7.221 at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.7850, compared with its close of 81.3350 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement added 0.50% to Rs 54120.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was currently flat at 104.55.

The United States 10-year bond yield rose 1.02% to 3.539.

In the commodities market, Brent crude for February 2023 settlement rose $1.11 or 1.30% to $86.68 a barrel.

Buzzing Index:

The Nifty Auto index fell 0.44% to 12,988.45. The index has declined 1.84% in three sessions.

TVS Motor Company (down 2.86%), Tata Motors (down 1.61%), Bharat Forge (down 0.8%), Sona BLW Precision Forgings (down 0.69%) and Mahindra & Mahindra (down 0.69%) were the top losers.

Among the other losers were Maruti Suzuki India (down 0.35%), MRF (down 0.3%), Bajaj Auto (down 0.26%).

On the other hand, Samvardhana Motherson International (up 1.69%), Ashok Leyland (up 1.06%) and Bosch (up 0.41%) moved up.

Stocks in Spotlight:

HPL Electric & Power rose 2.25%. The company announced the receipt of first set of formal orders for supply of 5G electric products including cable to the top telecom companies.

ICICI Lombard General Insurance Company fell 1.13%. The company said that it has entered into a bancassurance tie-up with AU Small Finance Bank.

Powered by Capital Market - Live News