The market is set to begin in the green, as trends in the SGX Nifty imply a 45-point rise for the wider index in India.
For the sixth consecutive session, the BSE Sensex surged 418 points to 63,100, while the Nifty50 gained 140 points to 18,758 and produced a bullish candle on the daily charts with higher highs formation.
According to the pivot charts, the Nifty’s important support level is around 18,654, followed by 18,607 and 18,531. If the index rises, the important resistance levels to monitor are 18,806, 18,854, and 18,930.
Keep an eye on Moneycontrol to see what happens in the currency and equities markets today. We have compiled a list of key headlines from various news outlets that may have an influence on both Indian and worldwide markets:
The US Markets
Wall Street closed substantially higher on Wednesday as Federal Reserve Chair Jerome Powell said that the central bank might slow the pace of interest rate rises as early as December. Following the publication of Powell’s planned comments for delivery at the Brookings Institution think tank in Washington, the S&P 500 rebounded and finished above its 200-day moving average for the first time since April.
The S&P 500 gained 3.09% to close at 4,079.97 points. The Nasdaq surged 4.41% to 11,468.00 points, while the Dow gained 2.18% to 34,589.24 points.
Asian markets rose, extending the confidence that fueled Wall Street’s gain after Federal Reserve Chair Jerome Powell reaffirmed that lower rate increases might begin in December.
In Japan, the Nikkei 225 increased 1.13%, while the Topix rose 0.25%. In Asia’s morning session, the Kospi in South Korea jumped 0.77%, while the S&P/ASX 200 in Australia rose 0.82%.
Trends in the SGX Nifty suggest to a favourable start for India’s wider market, with a 45-point increase. On the Singapore market, the Nifty futures were trading at roughly 18,961 points.
Powell, Fed Chairman: Rate increases will halt, but adjustment is just getting started
On Wednesday, Federal Reserve Chair Jerome Powell said it was time to slow the pace of future interest rate hikes, while also signalling a protracted economic adjustment to a world where borrowing costs will remain high, inflation will fall slowly, and the United States will be chronically short of workers.
Powell gave a short-term message that sent markets soaring in an hour-long session of prepared remarks and questions at the Brookings Institution think tank, his last scheduled appearance before the Fed’s next meeting in two weeks: the Fed was “slowing down” from the breakneck pace of three-quarter percentage point rate hikes that had prevailed since June, and would feel the way towards the peak interest rate needed to slow inflation to the Fed’s 2% target.
“”We wouldn’t…try to collapse the economy and then clean up,” Powell said, adding that officials are aiming not to “overtighten…because we don’t believe reducing rates is something we want to do soon.” That’s why we’re slowing down and trying to figure out what the optimum number is “This reduces inflation over time.
GDP growth in July-September is 6.3%, which is in line with estimates.
According to figures issued on November 30 by the Ministry of Statistics and Programme Implementation, India’s GDP growth more than halved to 6.3 percent in July-September from 13.5 percent in April-June. According to a Moneycontrol survey, the current quarterly growth rate of 6.3 percent is in line with the consensus expectation – and the Reserve Bank of India’s (RBI) own prediction – of 6.3 percent.
In terms of Gross Value Added (GVA), growth was 5.6 percent in July-September, down from 12.7 percent in April-June and 8.3 percent in the same quarter previous year. Last quarter, India’s GDP increased by 16.2 percent in nominal terms.
The budget deficit of the Centre between April and October has increased to Rs 7.58 lakh crore, or 45.6% of the FY23 target.
The fiscal deficit of the Central Government increased to Rs 7.58 lakh crore in April-October, accounting for 45.6 percent of the full-year objective, according to statistics issued on November 30 by the Controller General of Accounts. The budget deficit for April to October 2021 was 36.3 percent of the FY22 objective.
In the first seven months of the previous fiscal year, the budget deficit was Rs 5.47 lakh crore. As a result, the budget deficit in April-October of the current fiscal year is 39% greater year on year. For FY23, the Centre intends to have a budget deficit of Rs 16.61 lakh crore, or 6.4 percent of GDP.
In October, India’s core sector production growth slowed to a 20-month low of 0.1%.
According to official statistics issued on Wednesday, the growth rate in eight major sectors dropped to a 20-month low of 0.1 percent in October due to contractions in crude oil, natural gas, refinery products, and cement output.
The pace of increase in coal, steel, and power output has dropped to 3.6 percent, 4 percent, and 0.4 percent, respectively. These figures have an impact on IIP (index of industrial production) statistics. The administration expects to issue the October IIP figures in the second week of December.
GDP figures suggest that the economy is still on pace for 6.8-7% growth in FY23: Nageswaran, CEA
The Indian economy maintained its pace in July-September, and the nation is on course to develop by 6.8-7 percent this fiscal year, according to Chief Economic Adviser V Anantha Nageswaran.
Nageswaran told reporters on November 30 that although a dip in the growth rate was predicted due to the fading of the base effect, the results demonstrate the economic recovery from the coronavirus outbreak has proceeded.
“This data demonstrates that the economic recovery is continuing, that major components of economic development are stabilising at a modest pace, and that we are on track to produce 6.8-7 percent GDP growth in the current fiscal year,” Nageswaran said.
Data from FII and DII
According to preliminary data available on the NSE, foreign institutional investors (FIIs) net purchased shares worth Rs 9,010.41 crore on November 30, while domestic institutional investors (DIIs) net sold shares worth Rs 4,056.40 crore.
NSE stocks on the F&O prohibition list
The National Stock Exchange has kept Punjab National Bank, BHEL, Delta Corp, and Indiabulls Housing Finance on its December 1 F&O ban list. Companies whose derivative contracts have exceeded 95 percent of the market-wide position limit are therefore prohibited under the F&O sector.