 "Indices post first weekly decline in five weeks; Sensex falls 260 points")
The benchmark Indian indices posted their first weekly loss after five weeks amid a risk-off sentiment globally due to concerns around hawkish central bank policies.
During Friday’s trade, the Sensex fell 260 points, or 0.4 per cent, to close at 62,979 points, while the Nifty50 declined 73 points, or 0.4 per cent, to finish at 18,706 points.
As a result, the Nifty50 and the Sensex ended the week with losses of 0.9 per cent and 0.6 per cent, respectively with the former losing 161 points and the latter 409 points.
The Nifty Smallcap index, however, managed to eke out 1.5 per cent gains for the week.
Earlier during the week, the Sensex and the Nifty50 had logged their lifetime closing highs. Among sectoral indices, BSE Commodities, BSE Consumer Durables and BSE IT were among the major losers.
“Global central banks are currently focused on addressing inflation and have reiterated their commitment to reaching their target levels, as evidenced by the hawkish commentary from Powell and the unexpected rate hike by the Bank of England. The downward revision of earnings guidance by a major US tech company Accenture has raised concerns about potential earnings downgrades in the Indian IT sector, resulting in pressure on IT stocks. However, the domestic market is not expected to experience a significant correction due to favourable domestic economic indicators and correction in international commodities,” said Vinod Nair, head of research, Geojit Financial Services.
Foreign portfolio investors (FPIs) sold shares worth Rs 345 crore on Friday, while domestic institutional investors were net-sellers to the tune of Rs 684 crore. Besides, selling pressure in index majors Reliance Industries, Infosys and L&T also dragged the benchmark indices lower, traders said.
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"Nifty fell for the second consecutive session on June 23 pulled lower by negative global cues. Global stocks fell on Friday, extending their declines for the week and edging towards their worst week since March, as traders worried that central banks' efforts to curb sticky inflation will lead to recessions and strengthen the US dollar," said Deepak Jasani, head of retail research, HDFC Securities.
Tata Motors was the biggest loser in the Sensex pack, skidding 1.77 per cent, followed by SBI, Power Grid, Tata Steel, Infosys, UltraTech Cement, Titan, Larsen & Toubro, Reliance Industries and Maruti. On the other hand, IndusInd Bank, Bharti Airtel, Asian Paints, NTPC, HCL Technologies, HDFC and Sun Pharma were the gainers.
"The downward revision of earnings guidance by a major US tech company Accenture has raised concerns about potential earnings downgrades in the Iandian IT sector, resulting in pressure on IT stocks.
"However, the domestic market is not expected to experience a significant correction due to favourable domestic economic indicators and correction in international commodities prices to sustain earnings growth on a QoQ basis," Nair added.
In other Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended lower. Equity benchmark indices in Europe were also trading in the red. The US markets ended on a mixed note in the overnight trade on Thursday. Global oil benchmark Brent crude declined 1.11 per cent to $73.32 a barrel.
HMA Agro public offer subscribed 1.6 times
The initial public offering (IPO) of buffalo meat exporter HMA Agro Industries managed to scrapethrough, garnering just 1.6 times, according to stock exchange data. The institutional portion of the issue was subscribed 1.75 times, retail portion was subscribed 92 per cent and high networth individual quota was subscribed nearly three times.
The company had set a priceband of Rs 555-585 per share for its Rs 480-crore IPO. Through the IPO, HMA raised Rs 150 crore in fresh capital. The IPO also comprises a secondary share sale of Rs 330 crore by promoters. Agra-based HMA Agro is a three-star export house recognised by the government of India.
BS REPORTER