Equity benchmark fall for first time in four days ahead of macro data

Equity benchmarks snapped their three-session winning run to close modestly lower on Friday as investors stayed on the sidelines ahead of the release of key macroeconomic data.

A depreciating rupee and subdued trend in global markets also weighed on sentiment.

After a choppy session, the 30-share BSE Sensex ended 20.46 points or 0.03 per cent lower at 58,786.67. Similarly, the broader NSE Nifty slipped 5.55 points or 0.03 per cent to 17,511.30.

Titan was the top laggard in the Sensex pack, shedding 1.39 per cent, followed by HDFC, Axis Bank, Kotak Bank, HCL Tech and Tech Mahindra.

Asian Paints, SBI, M&M, TCS, Bajaj Finserv and ICICI Bank were among the winners. According to market experts, participants were in wait-and-watch mode ahead of industrial production data domestically, as well as US inflation numbers.

"Indian benchmark indices traded with cuts to close flat following weak sentiments in the global market as the market awaits the release of Indian and US November inflation numbers," said Vinod Nair, Head of Research at Geojit Financial Services.

"Losses in financial and IT sectors pressurised indices lower while positive realty, auto and metal stocks helped in erasing losses along with strong support from mid and small caps. Asian and European indices were trading weak ahead of the US inflation data release as the market expects inflation levels to remain elevated," he added. On a weekly basis, the Sensex advanced 924.31 points or 1.60 per cent, while the Nifty surged 273.50 points or 1.59 per cent. "Domestic equities gave positive returns this week amid easing concerns pertaining to the potential severity of the Omicron COVID variant....

"Markets will keenly watch out for the actions on asset tapering and key policy rates in the upcoming Fed meet. FII continues to be a net seller in the market," said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

Sectorally, BSE consumer durables, telecom, bankex, finance, teck and IT indices fell up to 0.28 per cent in Friday's session, while realty, oil and gas, power, utilities and metal ended with gains.

Broader BSE midcap and smallcap indices climbed up to 0.85 per cent.

Global markets were in the negative zone ahead of US inflation data, which will provide clues on the Fed's tapering timeline.

Elsewhere in Asia, bourses in Shanghai, Tokyo, Seoul and Hong Kong ended with losses.

Stock exchanges in Europe were also trading in the red in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 0.39 per cent to USD 74.71 per barrel.

The rupee dropped by 18 paise to an over 16-month low of 75.78 on Friday amid consistent foreign fund outflows and growing concerns about inflation.

Continuing their selling spree, foreign investors withdrew Rs 1,585.55 crore on a net basis from Indian equities on Thursday, according to the exchange data.