Daily Market Commentary - Dec 5, 2022 - Bonanza Portfolio

Mr. Jitendra Upadhyay, Sr. Equity Research Analyst, BONANZA PORTFOLIO LTD

Indian indices opened flat today on the back of mixed global cues. At the time of closing, the Sensex was down 33.90 points or 0.05% at 62,834.60, and the Nifty up 4.90 points or 0.03% at 18,701.

During the day, after pulling out money from the Indian equities market in the past two months, FPIs made a strong comeback in November with a net investment of Rs 36,329 crore on weakening of the US dollar index and positivity about overall macroeconomic trends. India's foreign exchange reserves rose for the third consecutive week due to easing pressure on the rupee after comments from US Federal Reserve Chair about slower rate hikes and a fall in crude oil prices. The uptick in the foreign exchange reserves is a result of the rise in the Foreign Currency Assets (FCA), which is a major component of the overall reserves. India S&P Global November Services PMI at 56.4 vs 55.1 MoM. Bank of India: has raised Rs 1,500 crore by allotting Basel-III compliant additional Tier-I bonds, to seven investors. G7 price cap - #India has been buying oil from #Russia, will continue to do what is in India's interest, the policy remains clear and steady.

Japan's service sector activity grew in November at the slowest pace in three months, as relentless inflation dampened a part of the economy that was benefiting from the return of domestic and foreign shoppers and easing COVID-19 restrictions. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to a seasonally adjusted 50.3 from October's 53.2, hitting the lowest since August. Britain's economy is on course to shrink 0.4% next year as inflation remains high and companies put investment on hold, with gloomy implications for longer-term growth, the Confederation of Business Industry forecast on Monday. UK November Services PMI at 48.8 versus estimates of 48.8. On the sectoral front, selling was seen in the auto, IT, pharma, while buying was seen in the PSU bank, realty, and metal stocks.

Nifty 50 top gainers are Hindalco Industries, Tata Steel, UPL, ONGC and Coal India. While Apollo Hospitals, Tata Motors, Reliance Industries, Tech Mahindra and SBI Life Insurance were among the top Nifty losers.

Source : Equity Bulls

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