The start of the day was on a positive note, amid report that investments through participatory notes (P-notes) in the Indian capital market surged to Rs 78,686 crore at October-end, making it the highest level in 14 months, on enhanced global liquidity and measures taken by the government back home. Some support also came as the Reserve Bank announced to conduct simultaneous purchase and sale of government securities under open market operations (OMOs) for Rs 10,000 crore each on November 26. The decision was taken after a review of the current liquidity and financial conditions.
In late morning deals, markets turned negative, as Global forecasting firm Oxford Economics revised downwards its India growth forecast over the medium term to an average 4.5 per cent over 2020-25, from its pre- pandemic projection of 6.5 per cent. In a research note, it said India's post- COVID-19 scars could be among the worst in the world. Sentiments were also negative, as Niti Aayog Member (Health) V K Paul said that India's overall spending on the health sector is 'low' and the situation must be 'corrected'. Emphasising that there is a need to request both the union and state governments to enhance spending on health, he said the COVID-19 experience will justify an increase in expenditure on health sector.
On the global front, European markets were trading higher. Asian markets
ended mostly higher on Friday, after China kept its benchmark loan prime
rates unchanged for the seventh consecutive month, as widely expected.
The one-year loan prime rate was retained at 3.85 percent and the five-year
loan prime rate was maintained at 4.65 percent. The one-year and five-year
Market Turnover & FII Derivative Data
loan prime rates were last reduced in April. The one-year loan prime rate
was lowered by 20 basis points and five-year rate by 10 basis points in April.