The key equity benchmarks ended with robust gains after an uneventful week. Broader markets managed to stage outperformance as compared to the key equity indices. Investors cheered after the minutes of the latest US FOMC indicated that the Fed could dial down the quantum of rate hikes going forward. However, overall gains were capped as rising COVID-19 cases in China weighed on sentiment. Geo-political tensions, however, remain high as Russia-Ukraine war continued unabated for thirty-ninth week. In the week ended on Friday, 25 November 2022, the Sensex added 630.16 points or 1.02% to settle at 62,293.64. The Nifty 50 index advanced 205.1 points or 1.12% to settle at 18,512.75. The BSE Mid-Cap index rose 1.83% to settle at 25,595.63. The BSE Small-Cap index gained 1.57% to settle at 29,201.69.

Weekly Index Movement:

The domestic equity benchmarks declined for the third straight session on Monday, 21 November 2022. The barometer index, the S&P BSE Sensex, slipped 518.64 points or 0.84% to 61,144.84. The Nifty 50 index lost 147.70 points or 0.81% to 18,159.95.

The domestic equity benchmarks settled with modest gains on Tuesday, snapping a three-day losing streak. The S&P BSE Sensex gained 274.12 points or 0.45% to 61,418.96. The Nifty 50 index added 84.25 points or 0.46% to 18,244.20. Both the indices fell about 1.35% in past three trading sessions.

The headline equity indices ended with small gains on Wednesday. The barometer index, the S&P BSE Sensex, rose 91.62 points or 0.15% to 61,510.58. The Nifty 50 index added 23.05 points or 0.13% to 18,267.25.

Domestic equity benchmarks extended the winning streak for the third consecutive session on Thursday. The barometer index, the S&P BSE Sensex, jumped 762.10 points or 1.24% to 62,272.68. The Nifty 50 index gained 216.85 points or 1.19% to 18,484.10.

The key equity indices ended a volatile session with small gains on Friday, extending gains for the fourth trading session. The S&P BSE Sensex advanced 20.96 points or 0.03% to 62,293.64. The Nifty 50 index added 28.65 points or 0.15% to 18,512.75.

Stocks in Spotlight:

Tata Motors rose 2.29% while Dr Reddy's Laboratories shed 0.09%. Tata Motors will replace Dr Reddy's Laboratories in the 30-share benchmark S&P BSE Sensex effective Monday, 19 December 2022.

Larsen & Toubro (L&T) added 1.87%. The EPC major on Tuesday announced that it has purchased the entire stake held by Chiyoda Corporation in L&T-Chiyoda (LTC) for Rs 75 crore. L&T-Chiyoda (LTC) is a joint venture between Larsen & Toubro (L&T) and Chiyoda Corporation. The aggregate cost of acquisition is Rs 75 crore for acquiring 45,00,000 equity shares or 50% stake in LTC.

Larsen & Toubro's heavy civil infrastructure business of L&T Construction has secured an order from Greenko group, one of the world's leading renewable energy companies, for development of an off stream pumped storage project in Madhya Pradesh.

Axis Bank advanced 3.31%. The bank said that S&P Global Ratings raised the bank's long-term and short-term issuer credit rating to 'BBB-/A-3' from 'BB+/B' and the outlook on the long-term rating is stable. The agency has also raised the long-term issue rating on the bank's senior unsecured notes to 'BBB-' from 'BB+'.

Adani Enterprises declined 2.90%. The company on Friday (25 November 2022) announced that its board has approved fund raising by way of further public offering (FPO) through fresh issue of equity shares, aggregating up to Rs 20,000 crore. The company said that it will seek shareholders approval for the FPO by way of postal ballot process.

Bharti Airtel gained 1.23%. Nxtra Data ("Nxtra by Airtel"), a subsidiary of Bharti Airtel, started the construction of its new hyper-scale data centre in Kolkata. The company will invest Rs 600 crore in the development of the largest data centre in East India that will serve the underserved markets of East and North-East regions along with the SAARC countries and fulfill the growing needs of enterprises and global cloud players.

Tata Consumer Products rose 1.68%. %he company issued a clarification on media reports stating its plans to acquire part stake in packaged water firm Bisleri. The media reported today that Ramesh Chauhan is divesting Bisleri International to Tata Consumer Products Ltd (TCPL) for an estimated Rs 6,000-7,000 crore. Bisleri is reportedly India's largest packaged water company.

Reliance Industries (RIL) rose 0.75%. RIL said that Jio announced that Jio True 5G will now be available in Pune from 23 November 2022. Jio users in Pune will be invited to the Jio Welcome Offer, to experience Unlimited Data at up to 1 Gbps+ speeds, at no additional cost.

Cipla rose 0.32%. The drug major said that it has received a communication from the United States Food and Drug Administration (USFDA) that the classification of company's Goa manufacturing facility continues to be as Official Action Indicated (OAI).

State Bank of India (SBI) added 0.80%. A meeting of the Executive Committee of the Central Board of SBI is scheduled to be held on 29 November 2022 to seek approval for raising of Infrastructure Bonds up to an amount of Rs. 10,000 crore (including a green shoe option of Rs. 5,000 crores) through a public issue or private placement, during FY23.

Global Markets:

Japan's core consumer inflation accelerated to a 40-year high in October. The nationwide core consumer price index (CPI) was up 3.6% on a year earlier, exceeding the 3% gain seen in September.

Meanwhile, China left its benchmark lending rate unchanged for a third month in a row, according to an announcement from the People's Bank of China. The one-year loan prime rate is steady at 3.65%, and the five-year rate is also on hold at 4.3%, the notice said.

China has reportedly signaled more monetary stimulus was on the cards, including a likely cut to the reserve requirement ratio for banks, as it ramps up support for an economy under strain from surging Covid cases and more lockdowns.

The State Council reportedly said in a statement Wednesday that monetary tools “such as a RRR cut” will be used “in a timely and appropriate manner” to maintain reasonably ample liquidity.

China's economic outlook is darkening as Covid cases climb to a record and cities tighten restrictions to combat the spread of infections.

China's Central Bank said on Friday it would cut the amount of cash that banks must hold as reserves for the second time this year, releasing about 500 billion yuan ($69.8 billion) in long-term liquidity to bolster the slowing economy.

Inflation in the Eurozone soared past 10% at the end of last month, up from 9.9% in September.

Inflation in the euro area will hover around its current level over the next few months before starting to decline at some point during the first half of 2023, European Central Bank Vice President Luis de Guindos said on Thursday. Speaking at a financial event in Milan, de Guindos said inflation was likely at its peak or anyway close to it.

Euro zone November flash PMI (purchasing managers' index) readings on Wednesday reaffirmed that the 19-member currency bloc has entered recession, but the downturn in business slowed slightly. S&P Global's flash composite PMI, which encompasses services and manufacturing and is seen as a reliable gauge of economic health, rose to 47.8 in November from 47.3 in October.

Federal Reserve Bank of Boston leader Susan Collins said that, with little evidence price pressures are waning, the Fed may need to deliver another 75-basis point rate hike as it seeks to get inflation under control.

The recently released minutes from the last FOMC monetary policy meeting showed FOMC members saying it would soon be appropriate to slow the pace of U.S. interest rate increases. However, they also see a higher terminal Fed funds rate than they had earlier expected. Some Fed officials were worried the Fed could be tightening monetary policy more than necessary.

In U.S. economic data, the National Association of Realtors said Friday that existing-home sales fell 5.9% in October, slumping for a ninth straight month. That's down 28.4% from a year earlier.

Meanwhile, the U.S. leading economic index fell 0.8% in October, an eighth straight monthly decline, according to a Conference Board report Friday.