Shares come off the day's high; metal stocks in demand

The key equity indices came off the day's high in early afternoon trade. The Nifty managed to hold above the 17,150 mark. Metal stocks bounced back after declining in the past three sessions.

At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 613.43 points or 1.07% to 57,678.30. The Nifty 50 index added 175.15 points or 1.03% to 17,158.35.

The broader market lagged the main stock indices. The S&P BSE Mid-Cap index rose 0.43% while the S&P BSE Small-Cap index rose 0.08%.

The market breadth was strong. On the BSE, 1860 shares rose and 1258 shares fell. A total of 143 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 4.26% to 20.27. The Nifty 30 December 2021 futures were trading at 17,205.60, at a premium of 47.25 point as compared with the spot at 17,158.35.

The Nifty option chain for 30 December 2021 expiry showed maximum Call open interest (OI) of 31.3 lakh contracts at the 18,000 strike price. Maximum Put OI of 49.6 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty Metal index rose 1.22% to 5,265.15, amid bargain hunting. The index declined 7.51% in the past three sessions.

JSW Steel (up 2.70%), Hindalco Industries (up 2.14%), Hindustan Copper (up 2.16%), NMDC (up 1.62%), Adani Enterprises (up 1.31%), Jindal Steel & Power (up 1.18%) and SAIL (up 1.15%) advanced while Ratnamani Metals Tubes (down 2.13%) and Welspun Corp (down 1.24%) declined.

Manufacturing PMI:

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) increased to 57.6 in November from 55.9 in October, signalling the strongest improvement in the health of the sector for ten months. Moreover, the headline figure was well above its long-run average of 53.6.

Economy:

India's Gross domestic product (GDP) for the second quarter of the current fiscal logged fastest growth among major economies in the world. According to the government data released yesterday, GDP of the country grew by 8.4% from a year ago. As per the National Statistics Office (NSO) data, manufacturing output increased 5.5% during the period while construction segment grew 7.5% in the second quarter.

The NSO data suggest that household consumption rose in the second quarter, July-September, of FY22 despite the second wave of the COVID-19 pandemic, boosting hopes of a quicker recovery in consumer demand in the months ahead. Economy of the country has gained momentum during the quarter as demand in the economy gradually came back to normalcy after coronavirus related disruptions. The economy had contracted 7.5% in the same period last year.

The combined Index of Eight Core Industries stood at 136.2 in October 2021, which increased by 7.5% (provisional) as compared to the Index of October 2020.

Final growth rate of Index of Eight Core Industries for July 2021 is revised to 9.9% from its provisional level 9.4%.

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