The stock market indices opened on a positive note on Friday (November 12).
At 09:16 AM, the Sensex was up 309.35 points or 0.52 percent at 60,229.04. The broader Nifty was up 96.70 points or 0.54 percent at 17970.30. About 1,376 shares have advanced, 393 shares declined, and 63 shares are unchanged.
All Nifty stocks opened in the green. Tata Steel was up 1.66 percent at Rs 1,320.50, Sun Pharma was up 1.17 percent at Rs 803.35, Tech Mahindra 1.11 percent up at Rs 1,540.05, Bajaj Finserv 0.96 percent up at Rs 18,044.10 and Infosys 0.02 percent up at Rs 1,748.50
On Thursday, the benchmark indices closed negative at the end of trading. The BSE Sensex was 433.13 points down or 0.72 percent at 59,919.69. The broader Nifty was down 143.60 points or 0.80 percent at 17,873.60.
Gold trades lower
COMEX gold trades marginally lower near $1860/oz after a 0.8 percent gain on Thursday (November 11), Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said, gold has stalled near June high as support from increased demand as an inflation hedge and choppiness in equity markets is countered by persisting strength in US dollar amid expectations that Fed may act soon. ETF’s saw net inflows however the pace is marginal which shows lack of investor interest. Although Gold has paused after sharp gains in last few sessions the momentum remains positive.
Crude comes off recent highs
Ravindra Rao at Kotak Securities said, NYMEX crude trades marginally lower near $81.2/oz after a 0.3 percent gain yesterday. Crude oil has come off recent highs but remains choppy amid uncertainty about US response to rising energy prices and lack of any additional supply from OPEC. Support from smaller than expected buildup in US crude stocks is also countered by choppiness in equities, firmness in US dollar and OPEC’s downward revision to global demand estimates. Crude oil may remain range bound unless there is more clarity about US action however with uncertain demand outlook and prospect of higher US supply, the general bias may be on the downside
Stocks to watch out for
Stock specific actions can be witnessed in stocks:
Tata Steel (the company recorded sharply higher profit at Rs 12,547.7 crore in Q2FY22 against Rs 1,665.1 crore in Q2FY21)
Sun Pharma (gearing up to introduce antiviral Covid-19 drug, molnupiravir, as Molxvir at "an economical price" in India)
Indiabulls Housing Finance (net profit down 11 percent at Rs 286.34 crore Vs Rs 323.20 crore in Q2FY21).
Wall Street indices rebound
The S&P 500 and Nasdaq rebounded from two days of declines on Thursday as beaten-down chipmakers led gains, but losses in Walt Disney due to slowing subscriber growth in its streaming video service weighed on the Dow.
The Dow Jones Industrial Average was down 50.47 points, or 0.14 percent, at 36,029.47, the S&P 500 was up 12.88 points, or 0.28 percent, at 4,659.59 and the Nasdaq Composite was up 131.66 points, or 0.84 percent, at 15,754.37.
Asian shares up
Shares in Asia-Pacific mostly rose in Friday trade following overnight gains for tech stocks stateside as the Nasdaq Composite rebounded. Japan’s Nikkei 225 gained 1.01 percent while the Topix index rose 1.19 percent. In South Korea, the Kospi climbed 1.22 percent.
Oil prices settle higher
Oil prices settled slightly higher on Thursday, as the market grappled with a stronger US dollar along with concern over increasing U.S. inflation, and after OPEC cut its 2021 oil demand forecast due to high prices.
Brent crude futures settled up 25 cents to $81.59 a barrel after falling during the session to $81.66. U.S. West Texas Intermediate (WTI) futures were up 23 cents to $82.87, bouncing off the session low of $80.20.
Dollar hits 16-month high
The dollar hit a 16-month high on Thursday and bond and stock markets drooped after the strongest US inflation reading in over three decades fuelled expectations of Fed interest rate hikes next year.
The dollar index, which gauges the currency against six peers including the yen and euro, continued to make steady progress in early European trading after rising on Wednesday in its biggest jump since March.
The US dollar has continued to strengthen Thursday against other major currencies following Wednesday's inflation data.
US inflation data
The Labor Department reported inflation data that showed U.S. consumer prices for the 12 months through October rose at their fastest pace in over 30 years, rising 6.2 percent from a year ago.
As a result, US Treasury bond yields and the US Dollar Index surged.Bond markets in the US remained closed today due to the Veterans Day holiday.
The GBP/USD has fallen well below the 1.34 level and is approaching 1.3350. Meanwhile, the EUR/USD sliced through the 1.15 level on Wednesday and is currently trading around the 1.1450 mark, a level not seen since July last year.
SEBI makes changes to related-party transactions
Markets regulator SEBI has made sweeping changes to strengthen the monitoring and enforcement of norms pertaining to related-party transactions. The regulator has tweaked the definition of 'related party' and 'related-party transactions’ (RPTs), according to a notification issued on Tuesday.
It made changes to the process followed by a company’s audit committee for approval of RPTs that are material.
Gold prices soar to near 5-month high
Gold prices neared a five-month high touched in the previous session, after strong U.S. consumer price data prompted a rush into the precious metal seen as a hedge against inflation.
Spot gold was up 0.6 percent at $1,861.39 per ounce by 01:48 PM ET (1848 GMT). U.S. gold futures for December delivery settled 0.8 percent higher at $1,863.90 per ounce.
Results today
Coal India, Grasim Industries, Hero MotoCorp, Hindalco Industries, ONGC, Amara Raja Batteries, Apollo Hospitals Enterprise, Ashok Leyland, Mrs Bectors Food Specialities, Bharat Forge, Burger King, Force Motors, Glenmark Pharma, Motherson Sumi Systems, NALCO, NBCC, Paras Defence, and Suzlon Energy among 767 companies that will release their September quarter earnings.
7 stocks under F&O ban
Seven stocks - Bank of Baroda, BHEL, Escorts, Indiabulls Housing Finance, Punjab National Bank, SAIL and Sun TV Network - are under the F&O ban.
