FIRST TRADE: Sensex, Nifty open flat with a positive bias amid broad-based buying; Cipla up over 2%

Stock market today: The domestic equity indices on Friday, November 24, opened in positive territory amid broad-based buying. Globally, expectations that the interest rate in the US and Europe has peaked and foreign buying re-emerging in domestic equities have also aided sentiments.

At the time of filing this report, the S&P BSE Sensex was up 0.05 per cent, or 32.04 points, at 66,049.85, and the NSE Nifty was up 0.10 per cent, or 19.25 points, at 19821.25.

The Nifty Mid Cap 100 and Small Cap 100 opened in green. Meanwhile, the high-beta Nifty Bank was flat with a positive bias at 43,605.5.

"The dominant trend in the market this year is the huge outperformance of the mid and small caps. While Nifty is up only 8.82 per cent year-to-date (YTD), Nifty midcap index and Nifty smallcap index are up 33.38 per cent and 41.66 per cent YTD," said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Vijayakumar added that it was important to understand that Nifty is depressed by the poor performance of banks, which have the largest weight in Nifty. The Nifty Bank index is almost flat this year, with a meagre growth of 0.87 per cent.

According to him, banks are underperforming despite very good results because they are over-owned, and sustained FII selling is weighing on bank stocks. Mid- and small-cap stocks are under-owned, and retail exuberance is largely driving these stocks. There is no valuation comfort in the broader market, but valuations are fair in large caps.

Therefore, the next leg of the rally, driven by institutional money—both foreign and domestic—will be led by large caps.

BUZZING STOCKS

Lupin shares were up over 1 per cent after the company received the US Food and Drug Administration's (USFDA) approval for bromfenac ophthalmic solution.

NMDC shares traded nearly 2 per cent higher after the company increased the price of lump ore by 3.8 per cent and Fine by 4.4 per cent on a MoM basis.

Union Bank shares were up over 1 per cent after ICRA raised its credit rating to AAA from the earlier AA+.

Tilaknagar Industriers shares were up over 1 per cent after promoter Amit Dahanukar, via a block deal, sold a 1.56 per cent stake in the company at a price of Rs 252.68 per share.

On the other hand, Paytm shares were down over 2 per cent after block deals during market hours.

Prestige Estates shares were down over 1 per cent despite the company launching its residential project called Glenbrook in Bengaluru.

GLOBAL MARKETS 

Shares were dragged lower by China on Friday amid little guidance from Wall Street, which was closed for a holiday, while the dollar remained on the back foot as investors bet U.S. rates have peaked.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.4 per cent but is headed for a weekly gain of 0.9 per cent. It is up a whopping 7.1 per cent so far in November as investors grew increasingly confident that US rates have peaked, with discussions shifting to the timing and speed of future rate cuts.

(With agency inputs)

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