Sensex, Nifty hover near flat line; metal stocks upbeat

Lack of fresh triggers and profit booking kept indices near flat line in mid-morning trade. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 44.69 points or 0.11% at 41,065.30. The Nifty 50 index was up 11.85 points or 0.1% at 12,112.55. Investors remained on the sidelines ahead of India's GDP data on Friday, 29 November 2019.

The S&P BSE Mid-Cap index was up 0.4%. The S&P BSE Small-Cap index was up 0.19%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,058 shares rose and 958 shares fell. A total of 139 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.

Trading could be volatile as traders roll over positions in the F&O segment from the near month November 2019 series to December 2019 series. The November 2019 F&O contracts expire today, 28 November 2019.

Economy:

India's GDP data for September quarter is scheduled to be published on Friday, 29 November 2019. Ratings firm ICRA expects further deterioration in the growth of India's GDP to 4.7% in Q2 of FY2020, due to weakening momentum in the industry.

The Organisation for Economic Co-operation and Development (OECD) recently cut India's economic growth forecast for 2019 to 5.8%, but said it would pick up to 6.2% in 2020 and further to 6.4% in 2021. India's economy grew 6.8% in FY19.

Buzzing Index:

Metals stocks were upbeat as investors tracked positive mood around US-China trade talks. The Nifty Metal index extended gains for second day and traded 1.06% higher at 2,630.55.

NMDC (up 2.85%), JSW Steel (up 2.73%), Jindal Steel & Power (up 1.32%), National Aluminium Company (up 1.14%), National Aluminum Company (up 1.14%), Steel Authority of India (up 0.9%), Hindustan Zinc (up 0.54%) and Hindustan Copper (up 0.25%) advanced higher.

Tata Steel was up 1.69% after media houses reported that the company has cut 1,000 jobs in UK. Job cuts across UK have been announced as a part of transformation programme. The company seeks to build a financially strong and sustainable business in UK.

Stocks in Spotlight:

Zee Entertainment Enterprises (ZEEL) fell 2.02% to Rs 313.05 after three directors of the company resigned, with two citing related-party loans and film advances, among other issues, as the reasons.

Bajaj Electricals rose 1.63% to Rs 343.10 after HDFC mutual fund increased its stake in the company to 7.175% from 5.164% earlier. The announcement was made after market hours yesterday, 27 November 2019.

Foreign Markets:

Overseas, Asian markets were trading lower. Bills backing protesters in Hong Kong were signed into law by US President Donald Trump on Wednesday did not help to revive sentiment.

Trump reportedly signed into law two bills backing protesters in Hong Kong. That move came despite past objections by China amid ongoing trade negotiations between Beijing and Washington for an anticipated 'phase one' deal. Hong Kong's government on Thursday voiced strong opposition to the move, saying it will send the wrong signal to protesters.

US markets edged up for a fourth straight day to score another round of records Wednesday, supported by rosier US economic data and ongoing hopes for a US-China trade deal. US financial markets will be closed on Thursday for Thanksgiving Day and will have an abbreviated trading schedule on Friday.

In US economic data, a revised estimate of third-quarter GDP that showed the U.S. economy expanded at a 2.1% annual pace versus a previous estimate of 1.9%. The Federal Reserve's Beige Book reported U.S. businesses have seen continued growth in economic activity, wages and prices during recent weeks, and they maintain a generally positive outlook

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