Market May Open On Positive Note

Yesterday, it was a volatile trading session for Indian equities as the benchmark indices traded from high to lows and then ended above psychological 28,000 mark powered by IT shares and recovery in select bank shares. The Sensex closed with 35-point gain at 28,067.56 and Nifty appreciating 20 points to close above 8,400-mark. After a 15 days trading secession, DII was a net buyer on yesterday of Rs 101.62 crore. From last couple of days, shares of IT companies rise on weaker rupee. Yesterday, the rupee breached 62 per dollar mark and then rebounds from 9-month low to end at 61.94.

The market breadth indicating the overall health of the market was negative with 1,121 advances against 1,720 declines. The BSE Mid-Cap index declined 6.87 points (0.07%) to settle at 10,203.73. The BSE Small-Cap index shed 31.82 points (0.28%) to settle at 11,336.73. Both theses indices were underpeformed the Sensex.

At global level, U.S. stocks closed at highs on yesterday as weighed encouraging domestic data showed further strength in the U.S. economy and Intel gave an upbeat forecast offset concerns over continued signs of slowing growth in Europe and China. The Dow Jones industrial average closed above 33.27 points (0.19%) to 17,719. The S&P 500 gained 4.03 points (0.2%), to 2,052.75, its 44th record high this year; the Nasdaq composite up 0.56% to 4,701.87.

Among Yesterday’s positive economic releases was a rise in existing home sales, a jump in the Philly Fed index and weekly jobless claims remaining below 300,000 for the 10th straight week. Consumer prices were flat in October, while U.S. November Markit flash PMI was the weakest since January, declining for a third straight month. Based on strong U.S. economic data, U.S. crude settled up $1 at $75.88 per barrel on yesteday bolstered crude markets but focus remained on whether OPEC will cut enough output to end a five-month long sell-off when it meets next week i.e. on 27th November.

Yesterday, European markets were under pressure after the release of disappointing manufacturing and service sector activity from Germany. The late recovery reflected some better economic news in USA, where stronger home sales and data showing a decline in weekly applications for unemployment benefits provided encouragement. The euro zone's Euro STOXX 50 fell 0.67% to 3,102.21, France's CAC fell 0.75% to 4,234.21. While Germany's DAX up by 0.12% to 9,483.97.

Germany's manufacturing PMI fell to 50.0 this month from 51.4 in October, confounding expectations for a rise to 51.5. Its services PMI slipped to 52.1 in November from 54.4 last month, compared to expectations for an uptick to 54.5. France's manufacturing PMI fell to 47.6 this month from a reading of 48.5 in October, disappointing expectations for a rise to 48.9. Its services PMI rose to 48.8 in November however, from 48.3 the previous month, exceeding expectations for a rise to 48.6.

Asian stocks were mixed in today morning, overlooking Wall Street's higher finish overnight following strong U.S. economic data. China's Shanghai Composite index and Hong Kong's Hang Seng index opened near the flatline early Friday. While, Tokyo stocks opened lower and now trading at one per cent below, with investors eyeing political developments as Japan sets the stage for a snap election next month. The Nikkei 225 index at the Tokyo Stock Exchange lost 0.93%, or 160.45 points, to 17,140.36. The SGX Nifty is open with flat with marginally down by 0.01%. Today we expect Indian equities open slightly above on global cues and going forward may see volatility during a day.