Markets snap eight-day gaining streak

Indian equity markets snapped an eight-day gaining streak and ended lower by over half percent on Friday amid negative cues from global counterparts and broad-based profit booking in large caps. Key gauges made a negative start and stayed in red for whole day as traders were concerned after data by the Centre for Monitoring Indian Economy (CMIE) showed that the country's unemployment rate rose to a three-month high at 8 per cent during November. The unemployment rate in urban India was higher at 8.96 per cent, while in rural areas, it was at 7.55 per cent. Some concern also came with data from the central bank showing that India's services exports and imports in October fell from the previous month. Services exports in October stood at $25.38 billion, down from $28.03 billion in September, while imports slipped to $13.49 billion from $16.12 billion a month earlier.

The frontline indices extended fall in second half of session amid a private report stating that India’s current account deficit (CAD) may shoot up in the July-September quarter (second quarter, or Q2) of 2022-23 (FY23), with the net export ratio touching a fresh nine-year low at 5.89 per cent of gross domestic product (GDP) in Q2. Adding some pessimism, the provisional data available on the NSE showed foreign institutional investors (FIIs) net sold shares worth Rs 1,565.93 crore on December 01. However, markets managed to trim some losses towards the end, taking support from the Finance Ministry’s statement that Goods and Services Tax (GST) revenues rose by 11 per cent to about Rs 1.46 lakh crore in November over the year-ago period. This is the ninth straight month when collections from GST has remained above Rs 1.40 lakh crore.

On the global front, Asian markets settled lower on Friday, while European markets were trading mostly in red as optimism about slower Fed rate hikes faded and recession worries took center stage. Investors awaited key U.S. employment report for November due later in the day that is expected to show a sizable slowdown in hiring. Investors also fretted about China's zero-COVID policy failure and its impact on the global economy.

Back home, Aviation industry stocks remained in limelight as Jet fuel (ATF) price was reduced by 2.3 per cent, reflecting softening international oil prices but petrol and diesel rates remained on freeze for a record eighth month in running. There was some buzz in power stocks as government data showed that India's power consumption logged a double-digit growth of 13.6 per cent to 112.81 billion units in November 2022 compared to the year-ago period.

Finally, the BSE Sensex fell 415.69 points or 0.66% to 62,868.50 and the CNX Nifty was down by 116.40 points or 0.62% to 18,696.10.

The BSE Sensex touched high and low of 63,148.59 and 62,679.63, respectively. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.80%, while Small cap index was up by 0.70%.

The top gaining sectoral indices on the BSE were Realty up by 0.93%, Telecom up by 0.53%, Metal up by 0.52%, Industrials up by 0.49% and OIL & GAS up by 0.14%, while Power down by 1.23%, Auto down by 1.12%, Utilities down by 1.10%, TECK down by 0.52% and Consumer Durables down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.22%, Tech Mahindra up by 1.16%, Dr. Reddy's Lab up by 0.89%, Indusind Bank up by 0.43% and Bajaj Finserv up by 0.24%. On the flip side, Mahindra & Mahindra down by 2.24%, Hindustan Unilever down by 1.78%, Maruti Suzuki down by 1.58%, Nestle down by 1.52% and HDFC down by 1.32% were the top losers.

Meanwhile, the Centre for Monitoring Indian Economy (CMIE) in its latest data has indicated that the country's unemployment rate rose to a three-month high at 8 per cent during November 2022. The unemployment rate in urban India was higher at 8.96 per cent, while in rural areas, it was at 7.55 per cent.

In October this year, the urban joblessness was at 7.21 per cent and the rural unemployment rate was at 8.04 per cent. Among the states, Haryana continued to have the highest unemployment rate in the country in November at 30.6 per cent, followed by Rajasthan at 24.5 per cent, Jammu and Kashmir at 23.9 per cent, Bihar at 17.3 per cent and Tripura at 14.5 per cent.

The states that witnessed the least unemployment rate in the previous month are Chhattisgarh at 0.1 per cent, Uttarakhand at 1.2 per cent, Odisha at 1.6 per cent, Karnataka at 1.8 per cent and Meghalaya at 2.1 per cent. India's unemployment rate in October was at 7.77 per cent, while in September it was at a low of 6.43 per cent.

The CNX Nifty traded in a range of 18,781.95 and 18,639.20. There were 18 stocks advancing against 31 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 1.04%, Tata Steel up by 0.99%, Grasim Industries up by 0.97%, BPCL down by 0.69% and UPL down by 0.68%.

On the flip side, Eicher Motors down by 3.10%, Tata Consumer Products down by 2.23%, Mahindra & Mahindra down by 2.05%, Hero MotoCorp down by 1.94% and Hindustan Unilever down by 1.61% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 16.33 points or 0.22% to 7,542.16 and France’s CAC decreased 16.16 points or 0.24% to 6,737.81, while Germany’s DAX was up by 29.28 points or 0.20% to 14,519.58.

Asian markets settled lower on Friday ahead of key US employment report for November due later in the day, while weak US manufacturing data released overnight also dented market sentiment. Investors were also worrying about the failure of China's zero-covid policy and its impact on the global economy. Japanese shares tumbled as the yen strengthened following Fed Chair Jerome Powell's comments signaling smaller interest rate hikes could come as soon as the next meeting in December.

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