Stock market bounces back; banks, metals shine
Sensex was up 599.34 points, or 0.83 per cent at 73,088.33, while the Nifty was up 151.20 points or 0.69 per cent at 22,147.
The robust combination of rise in GDP growth to 6.3 per cent for September quarter from 5.7 per cent in the first quarter and the latest PMI data failed to lift the benchmark indices of Bombay Stock Exchange and National Stock Exchange. Beating all estimates of Dalal Street, the Purchasing Managers Index (PMI) for November shot up to 52.6 from October’s 50.3, according to the data released on Friday by Nikkei/IHS Markit Manufacturing Managers.
Most analysts blamed it on the “over-bought” market and external developments such as stalled vote on United States, tax rate cut reform and a joint decision by Organisation of Petroleum Exporting Countries (OPEC) and Russia to continue curbs on crude oil production at current level to ensure the fuel prices do not fall globally.
The 30-share Sensitive Index of BSE ended below 33,000-mark undergoing a major correction.
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The Sensex which was up 33,300.81 (+160.46) points in the morning in appreciation of good GDP and PMI data started losing ground in the afternoon session.
The fall turned steep after Europe resumed. BSE benchmark ended the day at 32,832.94 (-316.41) points, down 0.95 per cent.
Nifty at 10,121.80 points closed 1.02 per cent down. Nifty Bank contributed maximum to Friday’s afternoon decline as traders booked heavy profit in bank shares. Nifty Bank ended 0.56 per cent down at 25,195.95 (-136.45) points. In Sensex, just four shares ended up and 27 down. For Nifty, the ratio was 8:42.
Two major events lined up in December that may impact stocks are statement by Reserve Bank of India on credit and monetary policy on 8 December and United States Federal Reserve’s crucial meet on 12-13 December to take a call on interest rate increase. US rate is linked to foreign portfolio investors’ funds-flow into emerging market.
Top gainers in BSE benchmark were Kotak M Bank `1,002.55, 0.23 per cent and M&M `1,412, 0.11 per cent. Among losers were SBI `312, -232 per cent, RIL `911.30, -1.22 per cent and HDFC `1,862, -0.89 per cent.
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