The key equity indices settled lower on Friday, dragged by weakness in IT stocks. The Nifty closed below the 18,500 level after hitting the day's high of 18,664.70 in early trade. PSU banks and realty stocks also witnessed profit selling. On the other hand, FMCG, pharma and healthcare stocks bucked the trend.
The barometer index, the S&P BSE Sensex, declined 389.01 points or 0.62% to 62,181.67. The Nifty 50 index lost 112.75 points or 0.61% to 18,496.60.
HCL Technologies (down 6.72%), Tech Mahindra (down 3.58%), Infosys (down 3.15%), Wipro (down 2.39%) and TCS (down 1.72%) were major drags.
In the broader market, the S&P BSE Mid-Cap index shed 0.45% while the S&P BSE Small-Cap index fell 1%.
The market breadth was weak. On the BSE, 1221 shares rose and 2299 shares fell. A total of 121 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.59% to 13.48.
Traders keenly await the outcome of the US central bank's decision on interest rate next week. US Fed's statement on inflation and interest rate outlook will be closely watched.
The U.S. producer price index, due later on Friday, is expected to show that inflation faced by the manufacturing sector eased further in November. The reading is also expected to herald a similar trend in the more closely watched consumer price index, which is due to be released next week. A higher than anticipated inflation could invite more interest rate hikes by the Federal Reserve, given that the bank has signaled that its stance on monetary policy will be largely driven by the path of inflation.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.298 as compared with 7.288 at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.28, compared with its close of 82.38 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement added 0.21% to Rs 54,165.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 104.77.
The United States 10-year bond yield fell 0.28% to 3.483.
In the commodities market, Brent crude for February 2023 settlement rose 34 cents or 0.45% to $76.49 a barrel.
Global Markets:
Markets in Europe and Asia advanced on Friday as China inflation data came in roughly in line with expectations.
China's producer price index fell 1.3% in November compared to a year ago, extending its decline after shedding 1.3% in October. The nation's consumer price index rose 1.6% in November on an annualized basis.
US stocks ended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in the weekly jobless claims as a sign the pace of interest rate hikes could soon slow.
Slightly more Americans filed for jobless claims last week. Applications for unemployment benefits rose to 230,000 for the week ending December 3, up by 4,000 from the previous week's 226,000, the US Labor Department reported on Thursday.
Stocks in Spotlight:
HCL Technologies (HCL) dropped 6.72% after the management indicated that FY23 revenue growth will be at the lower end of earlier guidance.
The company held its Investor Day in New York on 8 December 2022. Chief executive officer C Vijayakumar at company's Investor Day said: "In October, we had increased our guidance from 13.5% to 14.5%. We had certain assumptions which helped us to devise 16-17% services growth. We had assumed certain furloughs. But we are seeing a bit higher. BFSI is the segment which is little bit impacted by furloughs, followed by tech companies," he said.
While declaring its Q2 results, the company increased revenue guidance for FY23 to 13.5%-14.5% YoY in constant currency. It expected services revenue to grow 16%-17% YoY in constant currency. EBIT margin guidance was revised to 18%-19%.
One 97 Communications (Paytm) jumped 7.20%. A meeting of the company's board is scheduled on 13 December 2022 to consider share buyback.
Vedanta declined 1.51%. The mining company said that its board has approved issuing upto 8,000 unsecured, rated, listed, redeemable, non‐convertible debentures having a face value of Rs 10 lakh each aggregating up to Rs 800 crore (base issue size of Rs 500 crore and green shoe option of up to an additional Rs 300 crore).
Bajaj Consumer Care gained 0.84%. The company announced that its board approved share buyback upto Rs 80.89 crore at a price not exceeding Rs 240 per share through open market route.
Larsen & Toubro (L&T) shed 0.60%. The EPC major said that its wholly owned subsidiary, Larsen & Toubro International FZE (LTIFZE) has entered into a share purchase agreement to purchase stake in OPRO.AI INC., a Delaware Corporation.
State Bank of India (SBI) added 0.78%. SBI said that its board will meet on Wednesday, 14 December 2022, to consider fund raising by way of issuance of Basel III compliant debt instruments through a public offer or private placement basis.
Hindustan Unilever (HUL) rose 0.74%. HUL announced its strategic investments in Zywie Ventures (OZiva) and Nutritionalab (Wellbeing Nutrition). HUL will acquire 51% equity stake in OZiva through a combination of primary infusion and secondary buyouts. The balance 49% will be acquired at the end of 36 months based on pre-agreed valuation criteria. HUL will acquire 19.8% equity stake in Wellbeing Nutrition through a combination of primary infusion and secondary buyouts.
Alembic Pharmaceuticals slipped 0.48%. The company announced that it has received final approval from the US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Desonide cream. Desonide cream is a low potency corticosteroid indicated for the relief of inflammatory and pruritic manifestations of corticosteroid-responsive dermatoses. According to IQVIA, Desonide cream has an estimated market size of $12 million for twelve months ended 30 September 2022.
Spandana Sphoorty Financial gained 1.27%. The company said that its board has approved the allotment of 1,000 non-convertible debentures (NCDs) on a private placement basis for an aggregate consideration of Rs 100 crore.
GMM Pfaudler declined 1.73%. The company through its wholly owned subsidiary Pfaudler GmbH, has entered into an agreement on 8 December 2022 to acquire Mixel France SAS and its wholly owned subsidiary Mixel Agitator Co. (collectively known as "Mixel"). A total consideration of 7 million euros will be paid to acquire 100% shareholding in Mixel and the transaction will be funded through a mix of internal accruals and debt. Mixel designs and manufactures customised mixing systems for a wide range of industrial applications.
Max Financial Services shed 1.44%. The company completed the transaction for the acquisition of the balance 5.17% stake held by Mitsui Sumitomo Insurance Company, Japan ('MSI'), in Max Life Insurance Company ('Max Life'), a material subsidiary of the Company. After the transaction, the shareholding held by the company in Max Life stands increased to 87%.
National Peroxide shed 1.06%. The company said that operations at its plant located at Kalyan, Maharashtra, are resumed from 7 December 2022 after completion of annual maintenance activities.
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