Key gauges add some losses in morning deals

Indian equity markets added some losses in morning deals due to selling in Oil & Gas, Energy and IT stocks. Traders overlooked a private survey showed India's output in the services sector expanded at the quickest pace in three months owing to demand strength, successful marketing and a sustained upturn in sales. The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 56.4 in November from 55.1 in October, as the new orders placed with service providers in India rose for the sixteenth straight month. Traders also paid no heed towards the Reserve Bank of India's (RBI) weekly statistical supplement showed India's foreign exchange reserves rose for the third straight week, to $550.14 billion in the week through November 25. For the week ended November 18, the country's reserves were at $547.25 billion. Meanwhile, the RBI will come out with its next bi-monthly policy review on December 7 at the end of a three-day meeting of the Monetary Policy Committee (MPC) beginning Monday.

On the global front, Asian markets are trading mostly in green as robust U.S. jobs data released on Friday fanned concerns that the Federal Reserve might stick with its hawkish stance. Besides, investors hoped steps to unwind pandemic restrictions in China would eventually brighten the outlook for global growth and commodity demand, nudging the dollar down against the yuan. Back home, coal industry’s stocks remained in watch with a private report that domestic coal production went up by 17.13 per cent to 524.20 million tonnes during April-November 2022 as compared 447.54 million tonnes of production recorded during the corresponding period of last year.

The BSE Sensex is currently trading at 62599.56, down by 268.94 points or 0.43% after trading in a range of 62507.88 and 62939.63. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.02%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Metal up by 1.56%, Realty up by 0.30%, PSU up by 0.20% and Industrials up by 0.01% while, Oil & Gas down by 0.81%, Energy down by 0.74%, IT down by 0.69%, TECK down by 0.68% and Power down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.92%, Indusind Bank up by 1.07%, SBI up by 0.26%, Asian Paints up by 0.07% and ICICI Bank up by 0.06%. On the flip side, Reliance Industries down by 0.94%, TCS down by 0.83%, Sun Pharma down by 0.81%, Tech Mahindra down by 0.80% and Infosys down by 0.78% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has said that Indian banking system's outstanding credit grew by 16.96 per cent for the fortnight ended November 18, 2022. The bank credit grew to Rs 133.29 lakh crore for the fortnight ended November 18 this year as against Rs 113.96 lakh crore on November 19, 2021.

It stated the deposit growth came at 9.30 per cent, with the overall base Rs 177.15 lakh crore as on November 18 as against Rs 162.06 lakh crore in the year-ago period. Interestingly, amid a war for deposits in the system as banks jostle to raise the liabilities to fund the elevated credit growth, the overall deposits in the system declined marginally during the fortnight as against the Rs 177.88 lakh crore as on November 4.

It can be noted that the current fiscal has seen a steady rise in credit growth driven by a variety of reasons, including economic growth, borrowers' shift to the bank as against other credit substitutes amid rising interest rates, etc. In FY 2021-22, bank credit rose by 8.59 per cent and deposits by 8.94 per cent.

The CNX Nifty is currently trading at 18623.70, down by 72.40 points or 0.39% after trading in a range of 18591.35 and 18728.60. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.17%, Tata Steel up by 1.96%, JSW Steel up by 1.61%, Indusind Bank up by 1.01% and Eicher Motors up by 0.78%. On the flip side, Adani Enterprises down by 2.10%, SBI Life Insurance down by 1.17%, Britannia Industries down by 1.14%, Tata Motors down by 1.14% and Reliance Industries down by 0.94% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 rose 9.42 points or 0.03% to 27,768.48, Straits Times advanced 15.90 points or 0.49% to 3,275.04, Hang Seng surged 645.27points or 3.46% to 19,320.62, Taiwan Weighted jumped 27.09 points or 0.18% to 14,997.77 and  Shanghai Composite was up by 49.24 points or 1.56% to 3,205.38.

On the other hand, KOSPI declined 18.49 points or 0.76% to 2,415.84 and Jakarta Composite was down by 1.89 points or 0.03% to 7,017.75.