Dear Trader…
The benchmark S&P BSE Sensex declined 56.74 points or 0.07% to settle at 81,709, while the broader Nifty future index closed at 24,783, higher by 18 points or 0.08%.
In a session where the market faced bouts of volatility, interest rate-sensitive sectors like auto and financials rallied. The auto sector was the top gainer on both the indices, after an earlier rally in the financial sector fizzled out.
Tata Motors shares closed 3.2% higher and shares of Bajaj Auto rallied 2.3%. Meanwhile, Axis Bank and Maruti Suzuki were among the top five Nifty 50 gainers.
The Reserve Bank of India on Friday decided to keep the policy rate unchanged for the 11th time in a row but sharply lowered the GDP growth forecast to 6.6% for the current fiscal, from the earlier level of 7.2%.
The central bank cut the cash reserve ratio (CRR) by 50 basis points to 4%, in an attempt to make available more money with banks for lending so as to boost economic activity. The move by RBI’s rate-setting panel MPC would release primary liquidity of about Rs 1.16 lakh crore to the banking system.
Global Markets – Global markets on Friday awaited the U.S. payrolls data to gauge if it challenged or cemented expectations of a U.S. Federal Reserve rate cut this month.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan reversed earlier losses to be up 0.2%, buoyed by a rally in Chinese shares, making up for investor caution around political ructions in South Korea.
Shares in Hong Kong and Shanghai rallied over 1%, while shares in Seoul tanked over 1% as lawmakers prepare to hold an impeachment vote Saturday after President Yoon Suk Yeol’s dramatic, short-lived martial law on Tuesday night.
Forex – The Indian rupee gained on Friday, closing at 84.6875 against the U.S. dollar, up from its close at 84.7325 in the previous session, strengthening on the back of a softer dollar and after the Indian central bank kept policy rates unchanged.
Meanwhile, the dollar index was slightly higher at 105.8 on Friday after declining 0.5% on Thursday.
Crude Oil – Oil prices slipped on Friday as the decision from OPEC+ to delay a planned hike in output to April highlighted concerns about weak demand. Brent crude futures fell 0.5% to $71.71, while U.S. West Texas Intermediate crude futures also dipped 0.5% to $67.97 a barrel.
On December 5, Foreign institutional investors (FIIs) bought equities of Rs 8,539.91 crore, while the domestic institutional investors sold equities of Rs 2,303 crore on the same day.
Nifty futures opened at 24760 points against the previous close of 24764 and opened at a low 24700 points. Nifty Future closed with an average movement of 144 points and rise of around 18 points and closed 24783 points…!!
Meanwhile, the benchmark indices concluded on a flattish trend, Indian broader indices displayed optimism as the RBI acknowledged the downward growth trend while last-mile inflation persisted.
By lowering the CRR and injecting Rs 1.16 lakh crore into the financial system, the RBI aims to stimulate economic growth amid increased liquidity. The overall market exhibited a mixed outlook, reflecting a cautious yet resilient stance, with sector rotation and specific stock movements shaping market sentiment.
Technically, the important key resistances are placed in Nifty future are at 24783 levels, which could offer for the market on the higher side. stainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 24808 – 25008 levels. Immediate support is placed at 24606 – 24474 levels.
Past Performance is not an Indicator of Future Returns. The securities quoted are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read Disclaimer and related all the documents carefully before investing, mentioned on www.nikhilbhatt.in
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