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India's benchmark indices, Sensex and Nifty, ended the trading day higher, with increased buying in banks and financials supporting the stock market gains.
Corporate announcements related to RIL, Paytm, M&M, and Asian Paints drove both their respective sectors higher and lower.
Small-cap companies showed signs of weakness after being heavily sold off today; therefore investors are becoming increasingly cautious ahead of this week's Reserve Bank of India (RBI) rate decision.
Indian stock market traded the day with decent gains; both Sensex and Nifty rose with a modest price appreciation. Sensex was up 256.06 points at 85,865.57 (0.30%), while Nifty was up 45.50 points at 26,250.80 (0.17%). Today's market activity reflects the sustained optimism of investors despite uncertainty over the global economy and the geopolitical environment. Here’s what happened in the stock market today based on Moneycontrol Live Updates.
Today, one of the better-performing sectors was banking, which saw the most trading volume in the market today. Nifty Bank Index traded at 59,780.95 with a gain of 0.42%, which was supported by strong buying momentum throughout the day for several major banking stocks.
HDFC Bank shares led the most active stocks chart with a trading value of Rs. 1,302.59 crore, up 0.90% to finish at Rs. 1,012.95. ICICI Bank inched up 0.95% to Rs. 1,388.10 with trades worth Rs. 1,014.01 crore. Kotak Mahindra Bank surged 1.14% to Rs. 2,127.70, whereas State Bank of India bucked the trend and settled marginally down 0.87% to Rs. 975.30.
Bajaj Finance jumped 3.06% to Rs. 1,041.60 and emerged as the top gainer in stock market today among Nifty 50. The non-banking financial company witnessed heavy volumes traded during the session today, with a total of Rs. 760.52 crore changing hands. It became the third most active stock of the session. HUL rose 1.31% to Rs. 2,457 and Shriram Finance gained 1.09% to Rs. 865.90.
On the losing side, Eicher Motors was down 2.06% to Rs. 7,050, and was the biggest laggard. ONGC was down 1.43% at Rs. 244.15, while SBI Life Insurance declined 0.89% to Rs. 2,011.10.
Also Read: ICICI Bank Share Price Gains 0.91% on Bonds Issue Buzz: Are You Missing Out?
A few key corporate announcements drove the Indian stock market today. Reliance Industries was in the news for announcing plans to invest $11 billion over five years by forming a joint venture to build 1 gigawatt of AI data capacity in Andhra Pradesh. However, the stock closed marginally lower at Rs. 1,563.50, down 0.41%
Shares of Paytm have been gathering steam since its subsidiary, Paytm Payments Services, got the final approval from the Reserve Bank of India to operate as a payment aggregator. The certificate allows the company to restart onboarding merchants, the process of which has been frozen since November 2022.
Mahindra & Mahindra launched an electric SUV, the BE 6 Formula E Edition, at Rs. 23.69 lakh. The stock bounced back 0.34 % to Rs. 3,697.75. Asian Paints announced setting up another manufacturing facility in the UAE with an investment of Rs 340 crore. It traded 0.35 % up at Rs. 2,885.
In today's stock market performance, while the large-cap indices were in the green, the BSE SmallCap index was down 0.22% or 114.52 points and closed the day at 52,208.09. This would indicate that investors preferred quality large-cap stocks over more speculative small-cap names in prevailing uncertain markets.
The advance-decline ratio of the NSE was 1,441 advancing stocks against 1,291 declining, which showed moderately positive breadth.
Indian rupee was trading marginally stronger at 89.24 per dollar as compared to the previous close of 89.27, partly recovering from its recent weakness. This stability in the currency market provided some support to the stock market today.
On November 26, gold reached a high level, trading at approximately $4,160 per ounce, with the likeliness of Federal Reserve interest rate cuts and the weaker dollar providing upward momentum in prices. Presently, the price of gold is trading slightly lower than yesterday, around $4,150, due to conflicting signals from around the world.
Oil prices had also faced the impact. WTI Crude Oil closed Wednesday up about 1% to $58.75/barrel then dropped today to $58.25/barrel while marketplace waited for possible peace news on Ukraine ahead of the OPEC+ meeting.
Market participants will be closely watching the RBI Monetary Policy Decision on 5th December 2021. According to a Reuters poll, the majority of participant economies are expecting the RBI to cut its benchmark rate to 5.25%, enabling it to better support stock markets and more economic growth.
Also Read: Stock market today: Sensex Soars 783 Points, Nifty at 26,131; JSW Steel Tops Gainers at 3.39%
Indian stock market today was strong, but the market's small-cap weakness suggests that investors are cautious. An increase or decrease in the RBI's rate decision and the ongoing corporate development will directly affect how investors continue to interact with this market; therefore, it will be key for investors to watch policy changes, as well as individual company news, as they continue to balance their portfolios with high-quality stocks.
1. What were the major causes for today's increase in the Indian stock market?
After the substantial rises in the prices of banking and financial stocks, the indian stock market reflected an overall positive performance. The tremendous positive sentiments concerning the Indian Banks, new positive news flowing out of corporate sectors, the strength of the rupee against other currencies, and also the expected direction of monetary policy by the Reserve Bank of India contributed much to the momentum created for the stock markets to withstand the negative global influence.
2. Which were the best performing sectors in stock market today?
It was clearly apparent that the banking and financial services sectors were leading from the front. The Nifty Bank was very strong with nice gains in stocks of major banks such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, which were highly traded and consistently provided a strong supporting environment for the overall stock market as a whole during the day's trading.
3. Why were small cap stocks under increased pressure today?
Small cap stocks today came under pressure on investors' willingness to take less risk and prefer the safety of larger, more established banks and companies, given the uncertainty across the world. Problems with the valuation of small cap companies, low liquidity, and caution prior to the upcoming policy meeting of the Reserve Bank of India added to selling pressure witnessed by small cap stocks.
4. What major corporate updates influenced the market today?
Several corporate announcements shaped sentiment, including Reliance Industries’ large AI data project, Paytm receiving final approval for its payment aggregator operations, Mahindra’s new electric SUV launch, and Asian Paints’ expansion in the UAE. These developments supported stock-specific movements across sectors.
5. What should investors watch ahead of the RBI meeting?
Investors should monitor interest rate expectations, commentary on inflation, liquidity measures, and economic outlook shared by the RBI. A rate cut could boost market sentiment, especially for rate-sensitive sectors like banking, real estate, and autos. However, global volatility and geopolitical risks also remain important factors.
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