The market was hovering in a narrow range near day's high in mid-morning trade. At 11:18 IST, the barometer index, the S&P BSE Sensex, was up 167.92 points or 0.46% at 36,338.33. The Nifty 50 index was up 44.95 points or 0.41% at 10,903.65. Buying was supported by recent weakness in crude oil prices and strength in local currency. Increase in fund flows from foreign portfolio investors also boosted sentiment.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1220 shares rose and 905 shares fell. A total of 114 shares were unchanged.
Metal shares rose. Steel Authority of India (up 1.83%), Hindustan Zinc (up 1.62%), NMDC (up 1.06%), Jindal Steel & Power (up 0.84%), Hindustan Copper (up 0.63%), JSW Steel (up 0.60%), Hindalco Industries (up 0.40%), National Aluminium Company (up 0.30%) and Tata Steel (up 0.30%), edged higher. Vedanta was down 0.28%.
Auto shares climbed. Mahindra & Mahindra (up 2.50%), Ashok Leyland (up 2%), Escorts (up 1.98%), Maruti Suzuki India (up 1.66%), Hero MotoCorp (up 0.79%), Bajaj Auto (up 0.39%), TVS Motor Company (up 0.27%) and Eicher Motors (up 0.01%), edged higher.
Auto major Tata Motors was down 1.95% after media reports suggested that the company-owned Jaguar Land Rover (JLR) will temporarily halt production and reduce the workforce by about 500 at its engine factory in Wolverhampton (UK) to adjust for low demand. JLR has been in hot water of late over uncertainties around Brexit, low demand for diesel vehicles and a weak demand in JLR's major market, China.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 823.47 crore in the domestic market on 29 November 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 973.31 crore on 29 November 2018, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 69.60, compared with its close of 69.85 during the previous trading session.
In the global commodities markets, Brent for January 2019 settlement was 32 cents at $59.83 a barrel. The contract had risen 75 cents, or 1.28% to settle at $59.51 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
On the macro front, the government will announce data on September quarter gross domestic product (GDP) later today, 30 November 2018. The Indian economy grew 8.2% year-on-year in the previous quarter, above 7.7% in the previous three months.
Meanwhile, the Reserve Bank of India (RBI) on Thursday, 29 November 2018, relaxed rules for non-banking financial companies (NBFCs) to sell or securitise their loan books. In order to encourage non-banking financial companies (NBFCs) to securitise/assign their eligible assets, RBI has been decided to relax the minimum holding period (MHP) requirement for originating NBFCs, in respect of loans of original maturity above 5 years, to receipt of repayment of six monthly instalments or two quarterly instalments (as applicable). However, minimum retention requirement (MRR) for such securitisation/assignment transactions shall be 20% of the book value of the loans being securitised/20% of the cash flows from the assets assigned. The above dispensation shall be applicable to securitisation/assignment transactions carried out during a period of six months from the date of issuance of this circular. Other terms and conditions of the above referred directions remain the same, RBI said.s
Overseas, Asian markets were mixed as investors waited for a highly-anticipated meeting between President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit in Argentina.
Growth in China's services industry slowed for the second straight month in November, an official survey showed. The official non-manufacturing Purchasing Managers' Index (PMI) released on Friday fell to 53.4 from 53.9 in October, but remained well above the 50-point mark that separates growth from contraction.
Growth in China's manufacturing sector stalled for the first time in over two years in November. The official Purchasing Managers' Index (PMI) fell to 50.0 in November from 50.2 in October, data showed on Friday. The 50-point mark is considered neutral territory, indicating no growth in activity or contraction on a monthly basis.
US stocks reversed direction to close lower Thursday as investors' attention shifted to a weekend meeting between President Donald Trump and Chinese President Xi Jinping.
Speaking to the media, Trump said he was "close to doing something with China" but that he wasn't sure he wanted to, citing revenue from tariffs on Chinese imports. Trump on Thursday tweeted that "billions of dollars" are pouring into the US Treasury from tariffs and that there is "a long way to go."
On the US data front, the number of Americans who applied for unemployment benefits last week rose to 234,000, their highest level in six months, according to the Labor Department.
The Commerce Department reported that consumer spending in October rose by 0.6%, while income rose by 0.5%. The same release showed personal-consumption expenditures, the Fed's preferred measure of inflation, right at the central bank's target of 2% year-over-year.
The National Association of Realtors reported that US pending home sales slid 2.6% in October from September, to their lowest level since June 2014.
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