The domestic stock market ended with deep cuts on Friday, mirroring weak global cues. Investors dumped shares as major central banks across the globe raised their policy rates by half a percent while maintaining a hawkish tone on inflation.Meanwhile, disappointing U.S. retail sales for November elevated concerns of an imminent recession.
All the sectoral indices on the NSE ended in the red. After briefly hitting the day's high of 18,440.95 in morning trade, the Nifty 50 index reversed trend and traded in the negative zone for remaining part of the session. The index settled near the day's low of 18,255.15 in late trade.
The barometer index, the S&P BSE Sensex tumbled 461.22 points or 0.75% to 61,337.81. The Nifty 50 index lost 145.90 points or 0.79% to 18,269.
TCS (down 2.01%), Adani Enterprises (down 1.58%) and Infosys (down 1.11%) were major drags.
In the broader market, the S&P BSE Mid-Cap index slipped 1.44% while the S&P BSE Small-Cap index declined 0.96%. The market breadth was weak.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.45% to 14.07.
The Nifty PSU Bank index (down 2.92%), the Nifty Realty index (down 1.51%) and the Nifty Healthcare Index (down 1.51%) underperformed the Nifty. The Nifty Oil & Gas index (down 0.48%), the Nifty FMCG index (down 0.49%) and the Nifty Financial Services index (down 0.54%) outperformed the Nifty.
Economy:
India's merchandise exports stood at $31.99 billion last month, up 0.59% from $31.8 billion in November 2021, according to the data released by the government on Thursday. Merchandise exports had contracted 16.7% year on year to $29.8 billion in October.
Meanwhile, imports surged to $55.88 billion in November as against $53 billion in same month last year. The merchandise trade deficit stood at $23.89 billion from $26.91 billion in the previous month.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.2768 as compared with 7.268 at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.82, compared with its close of 82.76 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement lost 0.06% to Rs 54,140.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 104.59.
The United States 10-year bond yield was up 1.30% to 3.495.
In the commodities market, Brent crude for February 2023 settlement declined $2.07 or 2.55% to $79.12 a barrel.
Global markets:
The Dow Jones index futures was down 427 points, indicating a weak opening in the US stocks.
Shares in Europe and Asia traded lower as hawkish signals from central banks worried investors.
The European Central Bank moved its key interest rate from 1.5% to 2% on Thursday and said it would start to shrink its balance sheet by around 15 billion euros ($15.9 billion) every month from March 2023 to the end of the second quarter of the year.
The Bank of England and the Swiss National Bank also opted to increase their interest rates by 50 basis points as Europe tries to grapple with high inflation.
In Asia, the au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index fell to a seasonally adjusted 48.8 in December from a final 49.0 in the month of November, marking the lowest reading since October 2020.
US stocks closed sharply lower on Thursday as fears intensified that the Federal Reserve's battle against inflation using aggressive interest rate hikes could lead to a recession.
Stocks in Spotlight:
GMM Pfaudler slumped 14.87% to Rs 1643.65 on heavy volumes after series of block deals in morning trade. The media reported that Pfaudler Inc, a promoter of listed company GMM Pfaudler, was to sell a majority of its stake in the company in a block deal that will fetch the shareholder Rs 2,278 crore. The sale comprised of 1.34 crore shares of the company, representing 29.88% stake in the company at a floor price of Rs 1,700 apiece, which is a 11.95% discount to the company's closing price of Rs 1930.7 recorded on the BSE on Thursday.
As of 30 September 2022, Pfaudler Inc held 1.43 crore shares of 31.88% stake in the company.
Reliance Industries slipped 0.53%. Reliance Digital Health, a subsidiary of Reliance Industries, has signed definitive agreements with Synchron Inc. to acquire 2.25% stake (on a fully diluted basis) in Synchron Inc. as part of its Series C financing round.
Meanwhile, Reliance Consumer Products, the FMCG arm and a fully owned subsidiary of Reliance Retail Ventures, on Thursday (15 December) launched its indigenous made-for-India consumer packaged goods brand, Independence, in Gujarat.
Oil India (up 0.78%) while Oil and Natural Gas Corporation (ONGC) (down 0.14%). Oil Explorer stocks were in demand on Friday after the Central Government on Friday (16 December 2022) slashed the windfall tax on petrol, diesel, jet fuel and crude oil following a decline in international rates. The move comes amid a 14% slump in global crude since November. India is the world's third largest consumer and importer of oil.
Tata Motors rose 1.10% and Dr Reddy's Laboratories fell 3.62%. The auto major will replace the drug major in the S&P BSE Sensex effective from Monday, 19 December 2022.
Nava spurted 9.31% after the Arbitral Tribunal issued a "Consent Award" to the company's subsidiary, Maamba Collieries Limited (MCL), settling all the claims against Zambia Electricity Supply Corporation (ZESCO).
Deepak Fertilisers and Petrochemicals Corporation rose 1.05% after the company announced demerger of its mining chemicals & fertiliser businesses.
Hindustan Foods rose 3.94%. The company said it will acquire a pharmaceutical manufacturing facility in Himachal Pradesh as a move to further expand its Health Care & Wellness division.
LIC declined 2.83% while HDFC AMC shed 0.95%. Life Insurance Corporation of India (LIC) disclosed that it increased its stake in HDFC Asset Management Company (HDFC AMC) to 9.053% from 7.024% earlier.
Dilip Buildcon declined 2.20%. The road developer said it has received letter of acceptance (LoA) for a new hybrid annuity model (HAM) project in Jharkhand worth Rs 976 crore. The project involves four laning of Mehgama-Hansdila section of NH-133 in Jharkhand on HAM mode.
Hindustan Petroleum Corporation (HPCL) slipped 1.50%. The company's board at its meeting held on 15 December 2022 approved a proposal for borrowing through further issuance of secured/unsecured redeemable non-convertible debentures/bonds/notes, etc. upto Rs 10,000 crore on private placement basis in the domestic market and/or in the overseas market from the date of such approval, the company said on Thursday.
Wipro declined 1.43%. The IT major announced that it has signed five year multi million agreement with Mazda Motor Logistics Europe to deliver managed services for its entire application landscape. Mazda is currently transforming itself into a more centralized organization with harmonized business processes and standardized business capabilities, resulting in reduced cost and complexity.
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