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Huge sell of in last 2 hrs! FIIs sell for more than 5000 cr! What's happening?

Good Morning Everyone, Yesterday the Nifty opened with a gap up at 17550 and went on to touch a high of 17600, where resistance was tested multiple times, and finally in the last 2 hrs there was a major sell-off by the FIIs which led to the market close at 17415.

There are concerns hovering around the interest rate hikes by the central banks due to rising inflation across the world and major European and American countries are also facing three from another wave of COVID, which could be the major reason for this relentless sell-off by the FIIs.

This could also be probably due to the monthly derivative expiry that is today. We can expect a very volatile day today.

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On the daily chart, Nifty has again formed a bearish candle. We could expect the Nifty to stay turbulent for this week.

Sector Watch:

Major sell of for the day was seen in IT stocks, followed by Auto sector.

Top Gainers:

Top gainers for the day were ONGC, Adani Ports & Coal India.

Top Losers:

Most auto sector stocks were seen in red like Maruti, Eicher Motors, and Tata motors. Infy was also in the section from the IT sector.

Global Markets:

Stocks closed with scant gains on Wall Street Wednesday after another day of wobbly trading. The tech-heavy Nasdaq rose 0.4 percent whereas the Dow Jones gained 0.1 percent. S&P 500 rose 0.2 percent.

Asian shares were mixed Thursday morning as investors reacted to the Bank of Korea’s decision to announce an interest rate hike. MSCI's broadest index of Asia-Pacific shares outside Japan was trading half a percent lower. Japan's Nikkei index gained 0.8 percent. Chinese blue chips were flat. And South Korea’s Kospi declined 0.38 percent. Elsewhere, Australian shares rose over 0.04 percent.

The prices Japanese companies charge each other for services rose 1.0% in October from a year earlier, their eighth straight month of gains and a sign inflationary pressure was building due to higher global commodity costs.

The services producer price index hit 105.4 in October, the highest since November 2001, Bank of Japan (BOJ) data showed on Thursday.

Indian Market:

Trends on the SGX Nifty indicate a flat opening to Nifty today.

Major support to Nifty is seen at 17250, 17000 today while resistance can be seen at 17500, 17600, and 17800.

Official data print on the GDP will show a 7.8 percent expansion on a year-on-year basis for the September 2021 quarter, according to a report. Real GDP will grow 9.4 percent in FY22 and decelerate to 7.5 percent for FY23 as the base effects result in the higher growth in the ongoing fiscal wear-off, according to the report by economists at HDFC Bank released on Wednesday.

Reliance Industries to restructure and repurpose gasification assets

The board on November 24 announced that it has decided to implement a scheme of arrangement (Scheme) to transfer Gasification Undertaking into a wholly-owned subsidiary (WOS). Repurposing the gasification assets will help the use of syngas as a reliable source of feedstock to produce chemicals and cater to growing domestic demand, resulting in an attractive business opportunity. Further, as the hydrogen economy expands, RIL will be well-positioned to be the first mover to establish a hydrogen ecosystem, the statement said.

The recent increase in the goods and services tax (GST) on finished products such as apparel, textiles, and footwear will have financial implications for the Micro, Small, and Medium Enterprises (MSMEs) which have a significant footprint in that space, said tax experts.

The Finance Ministry on November 18 notified a 7 percent increase in the goods and services tax (GST) applicable on finished products such as apparel, textiles, and footwear from 5 percent to 12 percent, effective January 2022.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 5,122.65 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 3,809.62 crore in the Indian equity market on November 24

Stock Specific News:

Reliance Industries | RIL has decided to implement a Scheme of Arrangement to transfer Gasification Undertaking into a wholly-owned subsidiary. RIL plans to restructure and repurpose gasification assets.

Coal India | The company reportedly said that rising costs mean Coal India will be forced to hike prices of supplies in long-term deals to protect profitability.

NCC | The construction major told that it is looking at EBITDA (earnings before interest, taxes, depreciation, and amortization) margins of about 11 percent for FY22.

Indian Overseas and Central Bank | CNBC-TV18 learns that the government has proposed privatizing Indian Overseas Bank and Central Bank.

CyberTech Systems and Software | India Rating & Research (Fitch Group) have upgraded the rating of the company from Long-Term Issuer Rating at 'BBB-/Stable/A3' to 'BBB/Stable/A3+'.

Capri Global Capital | The company entered into a co-lending agreement with the Union Bank of India to offer MSMEs loans.

Siemens | The company has recommended a dividend of Rs 8 per equity share for the financial year ended September 2021.

Tube Investments of India | ICRA has reaffirmed the long-term rating at AA+ and the short-term rating at A1+. The long-term rating has been removed from 'watch with developing implications' and 'Stable' outlook has been assigned.

Grasim Industries | Life Insurance Corporation of India sold 2.02 percent stake in the company via open market transactions. With this, the shareholding is reduced to 9.83 percent from 11.85 percent earlier.

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