The domestic equity benchmarks traded sideways in afternoon trade. The Nifty hovered near the 17,000 level after hitting day's low of 16,958.15 in early trade.
At 13:26 IST, the barometer index, the S&P BSE Sensex, was down 6.49 points or 0.01% to 57,628.35. The Nifty 50 index added 10.70 points or 0.06% to 16,996.30.
In the broader market, the S&P BSE Mid-Cap index gained 0.26% while the S&P BSE Small-Cap index rose 0.46%.
The market breadth was positive. On the BSE, 1,941 shares rose and 1,433 shares fell. A total of 138 shares were unchanged.
A consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic Bank. The package announced by JPMorgan Chase, Morgan Stanley and nine other giants consisted of $30 billion uninsured deposits.
Investors will look ahead to the US Federal Reserve's meeting next week to see how the central bank will proceed in its fight against inflation in light of the shakeup in the banking sector.
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The European Central Bank on Thursday announced a further rate hike of 50 basis points despite of recent turmoil in the banking sector.
Stocks in Spotlight:
Tata Consultancy Services (TCS) rose 0.16%. Rajesh Gopinathan, Chief Executive Officer and Managing Director of TCS has tendered his resignation, which will be effective from the close of business hours on 15 September 2023. The Board of Directors appointed K. Krithivasan as the Chief Executive Officer Designate, with effective from 16 March 2023. He shall take over as the Chief Executive Officer and Managing Director of the Company in the next financial year.
Infosys gained 1.89%. Infosys Finacle, part of EdgeVerve Systems, a fully owned subsidiary of Infosys and ABN AMRO, a leading financial services provider in the Netherlands, announced the implementation and go-live of the Infosys Finacle Liquidity Management Solution for the bank's corporate customers.
Dr. Reddy's Laboratories was up 0.44%. The company along with its subsidiaries announced the signing of a deal to divest certain non-core brands of the company in the dermatology segments to Eris Lifesciences. Under the agreement, Eris Lifesciences will be assigned the trademark of these brands by Dr. Reddy's for a consideration of Rs. 275 crore.
Zee Entertainment Enterprises (ZEEL) slipped 3.17%. The company offering a clarification to a media report, said that it has been exploring several strategies, including settlement, in relation to the ongoing dispute mentioned in the news report.
Media reports published yesterday stated that ZEEL has agreed to repay dues owed to IndusInd Bank Ltd. as the company seeks to resolve insolvency proceedings initiated against it and inch closer to completing a merger with a Sony Group unit to create a $10 billion media giant.
Samvardhana Motherson International lost 0.69%. The company said that its board has approved the acquisition of remaining 50% stake of Fritzmeier Motherson Cabin Engineering from F Holdings GmbH, Austria. Post completion of the transaction, Fritzmeier Motherson Cabin Engineering will become wholly owned subsidiary of the company.
Global Markets:
European stock markets opened higher Friday, with sentiment boosted by moves in both Europe and the United States to support under-pressure lenders, likely preventing a full-blown banking crisis.
Meanwhile, Asian stocks advanced on Friday after major Wall Street banks pledged a deposit of $30 billion in First Republic Bank in an attempt to bolster confidence in the banking system. The group of 11 banks, included Bank of America, Wells Fargo, Citigroup and JPMorgan Chase.
US stocks finished solidly higher Thursday after a consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic.
Meanwhile, U.S. Treasury Secretary Janet Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits will be there when needed.
The European Central Bank followed through with the 50 basis point rate hike it flagged at its prior meeting, despite ongoing volatility in the banking sector. It takes the bank's main rate to 3%.
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