The equity benchmark indices ended almost flat on Monday, tracking mixed global cues. Traders were cautious ahead of the Reserve Bank of India's policy outcome due on Wednesday, 7 December 2022. Metals, realty and PSU banks were in demand. However, IT, healthcare and oil & gas stocks were under pressure.

The barometer index, the S&P BSE Sensex, fell 33.9 points or 0.05% to 62,834.60. The Nifty 50 index added 4.95 points or 0.03% to 18,701.05.

Tata Steel (up 3.35%), NTPC (up 1.66%), SBI (up 1.58%), IndusInd Bank (up 1.38%) and Power Grid Corporation of India (up 0.96%) advanced.

In the broader market, the S&P BSE Mid-Cap index rose 0.10% while the S&P BSE Small-Cap index advanced 0.25%.

The market breadth was positive. On the BSE, 2,043 shares rose and 1,567 shares fell. A total of 184 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.10% to 13.73.

The Reserve Bank of India (RBI) started its bi-monthly policy review with the Monetary Policy Committee (MPC) meeting today. The bi-monthly policy review is expected to come out on 7 December 2022. More than the quantum of rate hikes, domestic investors would watch out for RBI's commentary as it ramps up its efforts to curb inflation and push growth.

On the political front, Gujarat Assembly Elections will be closely watched. The second phase of polling was held today, 5 December 2022. The first phase of assembly polls in Gujarat was held on 1 December 2022. The results will be declared on 8 December 2022.

India Services PMI:

The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 56.4 in November, from 55.1 in October. The latest figure indicated a sharp increase in output that was the quickest in three months. The latest expansion is linked to demand strength, successful marketing and a sustained upturn in sales.

Indian services firms continued to benefit from accommodative demand conditions in November. New business inflows rose markedly and at the quickest pace in three months, supporting a sharp expansion in output and further job creation. There was another substantial increase in input costs, the second-fastest since July, which underpinned the strongest upturn in selling charges in just under five-and-a-half years.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.226 as compared with 7.221 at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.8750, compared with its close of 81.3350 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement added 0.43% to Rs 54,082.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.18% at 104.72.

The United States 10-year bond yield rose 0.50% to 3.521.

In the commodities market, Brent crude for February 2023 settlement rose $1.67 or 1.95% to $87.24 a barrel, thanks to relaxations of strict Covid measures in China, while the OPEC kept production steady at its latest meeting.

Global Markets:

The Dow Jones index futures were down 124 points, indicating a negative opening in the US stocks today.

Most European indices declined while most Asian shares advanced on Monday as China relaxed virus testing rules in some cities, signaling more easing may come in the nation, which has been under strict Covid-related restrictions for more than two years.

China's services activity shrank to six-month lows in November as widening COVID containment measures weighed on demand and operations, a private-sector business survey showed on Monday, pointing to a further hit to economic growth.

The Caixin/S&P Global services Purchasing Managers' Index for November came in at 46.7, representing the lowest reading in six months. The print also marks the third consecutive month of contraction in output and new work, after October's reading came in at 48.4, while September's print was 49.3.

The figure echoed weak data in a larger official survey on Wednesday, which showed services activity fell to seven-month lows.

US stocks cut much of their earlier losses Friday as investors looked past hotter-than-expected labor data to the upcoming Federal Reserve meeting.

Job growth was stronger than expected in November despite the Federal Reserve's efforts to cool the labor market. Nonfarm payrolls grew by 263,000 last month while the unemployment rate was unchanged at 3.7%, according to the Labor Department on Friday.

Stocks in Spotlight:

State Bank of India (SBI) rose 1.58%. The state-run lender on Friday (2 December) said it has raised Rs 10,000 crore through its maiden infrastructure bonds, offering a coupon rate of 7.51%. The tenor of these bonds is 10 years. The amount raised through these bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segments.

Mahindra & Mahindra Financial Services added 5.24%, The NBFC said that it has recorded a disbursement of approximately Rs 4,500 crore in November 2022, delivering a 75% year on year (YoY) growth.

Edelweiss Financial Services jumped 4.03%. The company said that CRISIL Ratings has assigned 'CRISIL AA-/Negative' rating to the non-convertible debentures (NCDs) of the company.

Ion Exchange (India) added 4.02%. The company said that it has been awarded a contract by Indian Oil Corporation (IOCL) for setting up of a zero liquid discharge plant at IOCL's Panipat Refinery at a contract value of Rs 343.36 crore.

SJVN advanced 4.20%. The company, through its wholly owned subsidiary, SJVN Green Energy, secured 200 megawatt (MW) solar power project from Maharashtra State Electricity Distribution Company (MSEDCL).

Adani Ports and Special Economic Zone (APSEZ) rose 0.52%. The company said that it handled a cargo volume of approximately 25.3 million metric tonnes (MMT) in November 2022, registering a growth of 2.26% from 24.74 MMT recorded in November 2021.

Hatsun Agro Product gained 1.85%. The company announced that its board has approved raising Rs 301 crore through rights issue of equity shares. In an exchange filing, the company said that its board has approved issuing upto 71,85,444 fully paid-up equity shares at Rs 419 each, aggregating to Rs 301,07,01,036.

The issue will open on Monday, 19 December 2022, and it will close on Monday, 9 January 2023. The record date is fixed on Thursday, 8 December, 2022. The rights entitlement ratio is set at 1:30 (one rights equity share for every thirty fully paid-up equity shares held by the shareholders, as on the record date).

Dilip Buildcon gained 1.34%. The company announced that it has executed a contract agreement with the Gujarat Metro Rail Corporation (GMRC) for Phase-1 of Surat Metro Rail proiect in the state of Gujrat. The cost of project is Rs 702.02 crore. The period of completion of the project is 26 months.

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