 "Photo: Shutterstock")
The benchmark indices ended the Friday's session lower as markets looked to settle down after the US Federal Reserve on Wednesday issued an outlook that was more hawkish than expected.
The S&P BSE Sensex ended at 26,489, down 30 points, while the broader Nifty50 closed at 8,139, down 14 points.
In the broader market, BSE Midcap index closed little changed, while BSE Smallcap index lost 0.25%.
The market breadth, indicating the overall health of the market, remained negative. On the BSE, 1,486 shares declined and 1,122 shares rose. A total of 167 shares were unchanged.
"Dollar’s turn lower allowed markets to wriggle out of the tightening blues, but with Parliament’s winter session in a washout, stocks remained dripped with hardly any domestic cues to prop prices higher. Volatility and volumes were also on the softer side, with the year’s major events being over, which would mean that markets would now begin itself to position towards union budget," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
"Dollar’s turn lower allowed markets to wriggle out of the tightening blues, but with Parliament’s winter session in a washout, stocks remained dripped with hardly any domestic cues to prop prices higher. Volatility and volumes were also on the softer side, with the year’s major events being over, which would mean that markets would now begin itself to position towards union budget," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
BUZZING STOCKS
Bharti Airtel was the top loser and lost 3% on the BSE. Other losers included ONGC, Adani Ports, ICICI Bank and ITC.
Bharti Airtel was the top loser and lost 3% on the BSE. Other losers included ONGC, Adani Ports, ICICI Bank and ITC.
Also Read
Bharat Heavy Electricals (Bhel) lost 2% after the company announced that it has bagged a major order for supply of 118 sets of IGBT-based traction converters for 3 phase 6,000 HP electric locomotives. Valued at Rs 200 crore, the order has been placed on Bhel by Chittaranjan Locomotive Works (CLW).
Among other decliners, drugmaker Aurobindo Pharma's shares hit their lowest in more than nine months after the company was named in a lawsuit alleging it colluded with other drugmakers to fix prices of two commonly used drugs in the United States.
Other drug makers also fell on lingering concerns about potential action from the US Food and Drug Administration. Sun Pharmaceutical Industries fell as much as 2.52%, while Alkem Laboratories declined up to 1.5%.
Among gainers, Swan Energy jumped 5% after the company said that Government of Gujarat has decided to participate by investing 26% in equity of company's LNG port project in Gujarat.
Claris Lifesciences surged 20% to Rs 430, also its record high on the BSE after the company said it has entered into a definitive agreement with US-based Baxter International Inc. to sell its wholly owned subsidiary Claris Injectables for approximately $625 million (Rs 4,237 crore).
MARKET ADJUSTS POST FED POLICY
As the dollar stood near a 14-year peak, global markets continued to adjust to the idea of higher US interest rates after the Fed raised rates on Wednesday for the first time in a year and projected three more increases in 2017, up from two forecast in September.
Domestic markets look more vulnerable than other emerging markets due to the ongoing demonetisation drive and its possible heavy impact on corporate performances.
"The markets have become highly rangebound in the last one month or so. The Nifty is hardly moving in a 100-point range and the Sensex is moving in a 500-point range. This tight range will continue for some time," said Kunj Bansal, chief investment officer, Centrum Wealth Management.
"The major triggers - the RBI credit policy and the US Fed decision - are over. Now, the next earliest trigger would be the earnings season, starting in the second week of January. Pending that, the market will remain rangebound," he added.
GLOBAL MARKETS
European shares were set for a second straight week of gains with benchmark indexes holding near 11-month highs, with takeover expectations lifting Actelion to fresh record highs.
The pan-European STOXX 600 index was up 0.1% helped by gains among pharma and oil sector stocks.
MSCI's broadest index of Asia-Pacific shares outside Japan ended a shade lower after falling 1.8% on Thursday.
China's Shanghai Composite closed flat after losing 0.7% the previous day, while Malaysian and Indonesian shares weakened slightly. South Korea's Kospi added 0.2 percent.
Japan's Nikkei climbed 0.7%, reaching a one-year high on a weaker yen and gains on Wall Street overnight. US shares rose on Thursday, brushing off the initial shock of a more hawkish Fed, led by banks seen as beneficiaries of higher rates.
(With inputs from Reuters)
(With inputs from Reuters)
