At 14:30 IST, the barometer index, the S&P BSE Sensex advanced 388.53 points or 0.48% to 80,185.70. The Nifty 50 index gained 123.25 points or 0.51% to 24,254.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.68% and the S&P BSE Small-Cap index rallied 0.67%.

The market breadth was strong. On the BSE, 2,410 shares rose and 1,605 shares fell. A total of 174 shares were unchanged.

Economy:

The HSBC India Manufacturing PMI showed a substantial improvement in the health of the sector during November, despite downward movements in most of its subcomponents. Positive demand trends contributed to sharp expansions in sales and output, though growth was somewhat restricted by competitive conditions and price pressures. The latest results showed that a quicker upturn in cost burdens sparked the steepest rise in selling prices in over 11 years

The seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) fell from 57.5 in October to a joint 11-month low of 56.5 in November, signaling a softer improvement in the sector’s health. However, the pace of growth remained above its long-term average.

Pranjul Bhandari, Chief India Economist at HSBC, said: "India recorded a 56.5 manufacturing PMI in November, down slightly from the prior month, but still firmly within expansionary territory. Strong broad-based international demand, evidenced by a four-month high in new export orders, fuelled the Indian manufacturing sector’s continued growth. At the same time, however, the rate of output expansion is decelerating due to intensifying price pressures. Input prices for a variety of intermediate goods — including chemicals, cotton, leather, and rubber — rose in November, while output prices soared to an eleven-year high as rising input, labour, and transportation costs were passed on to consumers."

Meanwhile, India's foreign exchange (forex) reserves fell for an eighth consecutive week to hit a multi-month low of USD 656.582 billion in the week that ended on November 22, data from the Reserve Bank of India (RBI) showed.

Buzzing Index:

The Nifty Pharma index gained 0.90% to 22,440.15. The index rallied 3.27% in two consecutive trading sessions.

Natco Pharma (up 3.02%), Biocon (up 2.94%), Gland Pharma (up 2.43%), Laurus Labs (up 1.74%), Sun Pharmaceuticals Industries (up 1.54%), Divis Laboratories (up 1.5%), Mankind Pharma (up 1.48%), Granules India (up 1.45%), Dr Reddys Laboratories (up 1.40%) and Abbott India (up 1.29%) advanced.

On the other hand, Cipla (down 1.65%), Ipca Laboratories (down 0.26%) and Aurobindo Pharma (down 0.18%) edged lower.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.24% to 6.835 as compared with the previous close of 6.751.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.7000, compared with its close of 84.6000 during the previous trading session.

MCX Gold futures for the 5 December 2024 settlement lost 0.88% to Rs 75,700.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.64% to 106.41.

The United States 10-year bond yield shed 0.05% to 4.205.

In the commodities market, Brent crude for the November 2024 settlement gained 68 cents or 0.95% to $72.52 a barrel.

Stocks in Spotlight:

Tata Motors added 0.17%. The auto major’s total sales stood at 74,753 units in November 2024, registering growth of 0.78% as compared with 74,172 units in November 2023.

Ashok Leyland slipped 1.10%. The company reported a marginal increase in total vehicle sales to 14,137 units in November 2024, compared to 14,053 units sold in November 2023.