Daily Market Commentary - Dec 12, 2022 - Bonanza Portfolio

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

Indian indices opened on a negative note on December 12 with Nifty around 18400. At the time of closing, the Sensex was down 51.10 points or 0.08% at 62,130.57, and the Nifty was up 0.60 points at 18,497.20.

During the day, India's foreign exchange reserves rose for the 4 consecutive week. During the week ending, forex reserves rose by $11.02 billion to $561.16 billion. 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. The FCA rose $9.69 billion to $496.98 billion for the week ending December 2. In order to promote growth of exports from India and support the increasing interest of the global trading community in the rupee, the RBI put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in the rupee on July 11, 2022. Oil and Natural Gas Corporation Ltd proposes to drill 53 exploratory wells in Andhra Pradesh- 50 in Godavari on-Land PML (Petroleum Mining Lease) Block of KG Basin and three in CD-ONHP-2020/1 (OALP-Vi) Block Of Cuddapah basin with an investment outlay of Rs 2,150 crore.

There will be a substantial reduction in US inflation in 2023, US Treasury Secretary Janet Yellen said.

The US producer price index for final demand rose 0.3% in November and 7.4% year-on-year, data released on Friday showed, a slight upside surprise from forecasts of a 0.2% and 7.2% increase, respectively. Oil prices rose more than 1% in early Asian trade on Monday as a key Canada-United States crude pipeline stayed shut while Russian President Vladimir Putin threatened to cut production in retaliation against a Western price cap on Russian oil exports. Brent crude futures climbed 83 cents, or 1.1%, to $76.93 a barrel by 0020 GMT. US West Texas Intermediate crude was at $71.92 a barrel, up 90 cents, or 1.3%. On the sectoral front, the Information Technology index shed 0.5%, while PSU bank and oil & gas indices rose 1% each.

Nifty 50 top gainers are BPCL, Divis Laboratories, Coal India, Apollo Hospitals, and UPL while Asian Paints, Infosys, Eicher Motors, Titan Company, and Kotak Mahindra Bank were among the top Nifty losers.

Source : Equity Bulls

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