Barometers trade with tiny gains; breadth strong

The key equity indices traded with minor gains in early trade. The Nifty traded above the 24,700 level. FMCG, metal and auto shares advanced while IT, realty and media stocks corrected. Investors are awaiting for the outcome of today's RBI Monetary Policy Committee meeting.

At 09:29 IST, the barometer index, the S&P BSE Sensex rose 61.13 points or 0.08% to 81,826.99. The Nifty 50 index added 3.60 points or 0.01% to 24,712.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.09% and the S&P BSE Small-Cap index rallied 0.32%.

The market breadth was strong. On the BSE, 2,027 shares rose and 917 shares fell. A total of 107 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 8,539.91 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 2,303.64 crore in the Indian equity market on 5 December 2024, provisional data showed.

Stocks in Spotlight:

GPT Healthcare rose 0.94%. The company has entered into memorandum of Understanding (MoU) for the construction and finishing of a hospital building at Jamshedpur, Jharkhand.

Canara Bank added 0.51%. The bank said that the Reserve Bank of India (RBI) has approved to divest its 13% stake in Canara Robeco Asset Management Company and 14.5% in Canara HSBC Life Insurance Company through Initial Public Offer (IPO). The bank has been instructed to adhere to 31 October 2029, timeline for reducing stake in the said entities to 30%.

FSN E-Commerce Ventures (Nykaa) shed 0.93%. Nikhil Parikh has resigned from his position as chief executive officer (CEO) of Nykaa Fashion.com

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.05% to 6.793 as compared with previous close 6.789.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.6600, compared with its close of 84.7100 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement was added 0.35% to Rs 76,744.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 105.80.

The United States 10-year bond yield fell 0.17% to 4.173.

In the commodities market, Brent crude for February 2024 settlement lost 06 cents or 0.08% to $72.03 a barrel.

Global Markets:

Asian stocks traded mixed on Friday. All eyes are on the U.S. nonfarm payrolls report due in the day that may help shape the direction of the Federal Reserve's policy path later this month.

In Asia, key economic data releases include India's interest rate decision and Malaysia's foreign reserves. China's November foreign reserves data may also be released today.

US stock markets pulled back from record highs on Thursday as investors took a cautious approach ahead of the payrolls report. The S&P 500 declined 0.2%, the NASDAQ Composite fell 0.2%, and the Dow Jones Industrial Average dropped 0.6%. Technology stocks, a major driver of recent market gains, retreated, while economically sensitive sectors like energy, financials, and industrials also lost ground.

US initial jobless claims rose to 224,000 for the week ended November 30th, up from the previous week's revised figure of 215,000.

The upcoming US nonfarm payrolls report will be closely watched by investors and policymakers alike. A strong reading could reinforce expectations of economic recovery and support further normalization of monetary policy.

Meanwhile Bitcoin tumbled from record highs above the coveted $100,000 level, as it was slapped with heavy profit-taking.

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