India's Q2 GDP grows 7.6% surpassing estimates as manufacturing spikes - Daily Market Update - Equity 1 Dec 2023 | Globe Capital Market LTD.
India’s Q2 GDP grows 7.6% surpassing estimates as manufacturing spikes – Daily Market Update – Equity 1 Dec 2023

India's economy grew better than expected in the second quarter of FY24, driven by manufacturing and the government's spending push ahead of elections. The gross domestic product grew 7.6% in the July–September quarter, lower than 7.8% in April–June, according to the latest estimates released by the government's statistical office on Thursday.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended mix, Dow Jones was up 1.47% while Nasdaq ended on a flat to negative note.
  • European equity markets gained 0.30% to 0.41%
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is also trading higher, Nifty futures likely to open around 20348 levels (as on 8:30AM)


News highlights from across the globe

  • Indices in Asia-Pacific region were trading on a mixed note ahead of the release of a slew of economic data from Japan, South Korea, and China.
  • The Indian currency weakened 7 paise to close at its all-time weakest level of 83.40 against the U.S. dollar on Thursday.


Important news updates from the domestic front

  • Kesoram Industries & UltraTech Cement: Kesoram Industries announced that its cement business will be merged with UltraTech Cement Ltd. for about Rs 5,379 crore, to unlock its value and deleverage its balance sheet. Under the demerger agreement, UltraTech will issue 1 equity share for every 52 equity shares of Kesoram. About 59.74 lakh new equity shares of UltraTech will be issued to the shareholders of Kesoram.
  • Hindustan Aeronautics received nod from the Defence Acquisition Council for the procurement of light combat helicopters for Indian Air Force & Indian Army and light combat aircraft Mk 1A for the Indian Air Force.
  • Defence stocks: The government accorded an initial approval to defence acquisition projects worth Rs 2.23 lakh crore, 98% of which will be sourced from the domestic industries.
  • Infosys r announced its collaboration with Shell on immersion cooling services to enable sustainability-first data centres.
  • Wipro announced that it is working with Amazon Web Services to redefine the future of lab processes in the life sciences industry.
  • Dixon: Padget Electronics subsidiary inaugurated a new state-of-the-art smartphone manufacturing plant in the Noida district, Uttar Pradesh.
  • Larsen and Toubro incorporated a new wholly-owned subsidiary – L&T Semiconductor Technologies.


Nifty Overview & Outlook

The benchmark Nifty index extended gains for the third consecutive trading session and settled above 20100 levels after adding 36 points to its previous closing values in an volatile trading session on scheduled monthly derivatives expiry.

Broader market outperformed the benchmark as Small & Midcap was up 1.14% & 0.72% respectively against a flat closing of the frontline index.

Majority of the sectoral indices settled higher. Amongst them, Nifty Healthcare & Pharma index was at the top of the tally, gained over 1.5% each followed by Nifty Consumer Durables and Realty index that were up nearly 1.5% each. On the other hand, Nifty PSU Bank and Pvt Bank index led the declines, fell 1.10% and 0.19% respectively.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 19900 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty and Banknifty futures as open interest decreased by 23.3% and 17.3% respectively whereas short covering was seen in Finnifty futures with decrease in open interest by 2.5%.

Nifty futures rolled 73% of open interest into next contract which was lower than the previous month rollovers of 83% while Banknifty futures rolled 80% of open interest into next month which was inline with previous month rollovers of 79%.

On options front, Nifty will start the first weekly contract of December series with maximum positions at 20400 CE and 20000 PE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 8148 Cr in the cash segment, sold stocks futures worth Rs 938 Cr and bought index futures worth Rs. 170 Cr. DIIs were net seller in the cash segment to the tune of Rs 780 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 20380-20440; Supports 19950-19870

Banknifty – Resistances 45280-45500; Supports 44280-43980

Finnifty – Resistances 20390-20550; Supports 19930-1975007




Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.