The stock market indices opened lower on Thursday (November 25). At 09:16 AM, the Sensex was down 94.53 points or 0.16 percent at 58246.46. The broader Nifty was down 18.50 points or 0.11 percent at 17,396.50. About 1,216 shares have advanced, 516 shares declined, and 84 shares are unchanged.
Coal India, NTPC, ONGC, Tata Motors and Tata Consumer Products were among major gainers on the Nifty. ICICI Bank, HDFC Bank, Nestle, HUL, HCL Tech were among major losers at the opening bell.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said COMEX gold traded modestly higher near $1793/oz after a near flat close on November 24. Gold has edged up after taking support near $1780/oz level. Pause in US dollar index and bond yields has lent support to gold. FOMC minutes confirmed that Fed officials are worried about inflation and ready to fasten monetary tightening measures however it was well anticipated hence we did not see much reaction from US dollar and yields. Amid other factors, gold ETF investors also moved to sidelines awaiting fresh triggers. Gold is off the lows however a sustained rise is difficult with US dollar still on a firmer side
NYMEX crude trades in a narrow range above $78/bbl after a minor 0.1 percent decline. Crude oil is stable amid mixed inventory report which noted an unexpected increase in US crude oil stocks but a bigger than expected decline in gasoline and distillate stocks. Also market players have moved to sidelines as they await OPEC+ reaction to the stock release announced by US and other major consumers. Crude may remain directionless however rise in US crude stocks and stock release by consumers may keep prices under pressure, Rao added.
US stock close higher on Wednesday
US stocks closed mostly higher Wednesday after investors decided to buy the dip before taking a break for Thanksgiving. The uptick came from economic data forcing the market to reflect higher expectations that the Federal Reserve will reduce support from both the market and the economy.
The release of minutes of the Federal Reserve’s November meeting showed some officials favored a faster pace of tapering of the central bank’s monthly bond-buying program. U.S. markets will be closed on Thursday for Thanksgiving and will end early on the Friday after the holiday.
Personal spending also rose 1.3 percent month-over-month in October, higher than the expected 1 percent rise. Durable goods orders fell 0.5 percent month-over-month in October, worse than the consensus economist forecast of a 0.3 percent rise. PCE (Personal Consumption expenditure) rose 0.6 percent over month in October and 5 percent over the year. The Core Personal Consumption Expenditures Index, a key inflation measure the Fed tracks, rose 4.1 percent year-over-year in October, in line with estimates and higher than the previous reading of 3.7 percent.
US jobless claims at lowest level
Jobless claims fell to 199,000, the lowest level for initial claims since Nov. 15, 1969, according to the Labor Department, and far better than the expected 260,000. The drop extends a trend of strength in the labor market. The pace of economic growth in the third quarter was raised to a 2.1% annualized rate versus an initial estimate of 2 percent.
The US trade deficit in goods narrowed sharply in October. The University of Michigan’s gauge of consumer sentiment rebounded to a final November reading of 67.4 from an initial reading of 66.8, but below the October reading of 71.7.
Biden administration adds more Chinese firms to trade blacklist
The Biden administration added a dozen Chinese companies to its trade blacklist on Wednesday, citing national security as well as foreign policy concerns.
The Bank of Korea raised its policy rate by 25 basis points to 1 percent, a move that was largely expected by analysts in a Reuters poll.
Asian stocks trade mixed
Asian markets were mixed in trade on Thursday as traders weighed Federal Reserve minutes that flagged the risk of a faster reduction in stimulus to fight elevated inflation.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.18 percent to a six-week low, having posted a small decline in each of the past six trading sessions. Japan's Nikkei rose 0.8 percent. There were mild declines across the board. Australia shed 0.1 percent, Hong Kong lost 0.35 percent, and Chinese blue chips shed 0.3 percent.
European markets closed in red where FTSE closed 0.27 percent higher.
Tarsons Products to make stock market debut today
Tarsons Products share will make its market debut today. It might have an impressive opening. Y
RIL announces transfer of Gasification undertaking
On November 14, the board of Reliance Industries announced the transfer of Gasification Undertaking into a wholly-owned subsidiary.
FII data
On November 24, 2021, Foreign institutional investors have done net selling worth Rs 5,122.65 crore, while domestic institutional investors have done net buying worth Rs 3,809.62 crore in the Indian equity market.
GDP to grow 7.8% in Q2, 9.4% in FY22
Official data print on the GDP will show a 7.8 per cent expansion on a year-on-year basis for the September 2021 quarter, according to a report. Real GDP will grow 9.4 per cent in FY22 and decelerate to 7.5 per cent for FY23 as the base effects result in the higher growth in the ongoing fiscal wear-off, according to the report by economists at HDFC Bank released on Wednesday.
In FY21, the GDP had contracted 7.3 per cent due to the pandemic. For FY22, the RBI expects GDP to clock a growth of 9.5 per cent, which will slow to 7.8 per cent in FY23.
The GDP had expanded by over 20 per cent for the first quarter on the lower base. The official data for the second quarter is set to be released on November 30.
Crude up
On Wednesday, oil prices were quite stable. Brent crude was at $82.53 a barrel, up 0.33 percent, while US crude was at $7856, up 0.2 percent. Spot gold edged 0.17 percent higher to 1791 an ounce, Reuters said.
Two stocks under F&O ban
Two stocks – Escorts, and Indiabulls Housing Finance – are under the F&O ban for November 25.
