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WEEKLY MARKET REVIEW
The bulls came back strongly in the week ended November 22 with Indian benchmarks snapping a two-week losing streak to end with a nearly 2 percent gain ignoring fears of Gautam Adani’s bribery case, fresh geopolitical tension, and continued FII selling.
This week, BSE Sensex rose 1,536.8 points or 1.98 percent to end at 1,536.8, while the Nifty50 index added 374.6 points or 1.7 percent to close at 23,907.30.
HDFC Bank added most of its market value, followed by Tata Consultancy Services, Mahindra and Mahindra, and Power Grid Corporation of India. On the other hand, NTPC, Bajaj Finserv, and Reliance Industries lost most of their market cap.
On the sectoral front, the BSE Realty index rose more than 6 percent, BSE Auto, Metal, and Capital Goods indices were up 2 percent each. However, the BSE Oil & Gas index fell nearly 2 percent.
Considering the broader market indices, the BSE Large-cap Index added 1.7 percent while the BSE Mid-cap Index added 1.6 percent and the BSE Small-cap index rose 0.4 percent.
Foreign Institutional Investors (FIIs) continued their selling in the week ended November 22 as they offloaded equities worth Rs 11,414.18 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 11,036.76 crore.
This week, the Indian rupee hit a fresh record low of 84.50 but ended 5 paise lower at 84.45 per dollar on November 22 against the November 14 closing of 84.40.
ECONOMY
Centre to offer up to $5 billion in incentives to local electronics makers, wean off China
India will offer up to $5 billion in incentives to local electronics companies to make components for gadgets from mobiles to laptops, two government officials said, in a bid to bolster the burgeoning industry and wean off supplies from China.
India’s electronic production has more than doubled in the last six years to $115 billion in 2024, led by growth in mobile manufacturing by global firms such as Apple and Samsung. It is now the world’s fourth-largest smartphone supplier.
Private consumption back to being the driver of domestic demand, says RBI Bulletin
The Reserve Bank of India’s (RBI) monthly bulletin, released on November 20, said private consumption is back to being the driver of domestic demand, although with mixed fortunes.
Festival spending has lighted up real activity in the third quarter, the Bulletin added. Further, the report said that in India, “it appears that the slack in speed observed in the second quarter of 2024-25 is behind us”.
GLOBAL MARKETS
Wall Street closes higher after business activity data
Wall Street closed higher on Friday, with all three major indexes posting weekly gains, as investors took comfort from data pointing to robust economic activity in the world’s biggest economy.
A measure of business activity raced to a 31-month high in November, boosted by hopes for lower interest rates and more business-friendly policies from President-elect Donald Trump’s administration next year.
The domestically focused small-cap Russell 2000 index outperformed large-cap indexes and rose 1.8%. The index advanced 4.3% for the week, closing at its highest in more than a week.
Oil up 2% after Russia-Ukraine missile exchange, outweighing US crude stock rises
Oil prices climbed more than 2% on Thursday as Russia and Ukraine launched missiles at each other, overshadowing the impact of a bigger-than-expected increase in U.S. crude inventories.
Brent crude futures rose $1.48, or 2.03%, to $74.29 by 1158 GMT. U.S. West Texas Intermediate crude futures rose $1.53, or 2.23%, to $70.28.
STOCKS IN NEWS
Protean eGov Technologies: Shares of the IT-enabled solution company fell nine percent intraday as the National Stock Exchange (NSE) announced it would offload a stake in the company. NSE Investments will sell up to 20.3 percent stake in the company through an offer for sale (OFS) at a floor price of Rs 1,550 per share. The OFS includes the base issue of 10.16 percent equity and has a green shoe option of 10.16 percent equity.
Sobha: Shares rose to seven percent in trade after brokerage firm Investec initiated coverage on the stock with a ‘Buy’ rating. Investec has a price target of Rs 2,150 on the stock, which implies a potential upside of nearly 42 percent from Thursday’s closing levels.
SJVN: Shares rose to seven percent after the company announced that it has signed a Memorandum of Understanding (MoU) with the Energy Department, Government of Rajasthan for the development of renewable energy in the state.
Reliance Industries: International brokerages Morgan Stanley and JPMorgan reaffirmed their bullishness on diversified conglomerate Reliance Industries, reiterating ‘overweight’ tags, as the petrochemical producer saw its refining margins improve. RIL shares jumped 3.5 percent intraday.
Godrej Properties: Shares of Godrej Properties surged nearly 5 percent after Bank of America (BofA) upgraded the stock to a ‘Buy’ rating from ‘Neutral’ and raised its target price to Rs 3,600 from Rs 3,500, citing an attractive risk-reward profile following the recent correction.