Mumbai: The Sensex and Nifty broke their five-day bullish line to close Friday with small losses, weighted by negative global signals and outflows from foreign funds. In a largely subdued session, the 30-stock BSE Sensex finished 12.27 points or 0.02 percent lower at 61,223.03. Similarly, the NSE Nifty fell 2.05 points or 0.01 percent to 18,255.75.
Asian Paints was the biggest loser on the Sensex chart, losing 2.66 percent, followed by Axis Bank, HUL, M&M, Wipro, HDFC and Bharti Airtel. On the other hand, TCS, Infosys, L&T, Tech Mahindra, HDFC Bank and UltraTech Cement were among the prominent winners, rising to 1.84 percent. Market breadth was negative, with 18 declines and 12 advances. “The Indian market opened weakly after nervousness in global markets, but managed to wipe out most of the losses and remained flat, supported by positive trends in the IT, real estate and healthcare sectors. “The latest comment from the Fed official about a likely rate hike in March sparked sales in global equities. Global inflation worries worsened after the US reported 40-year high CPI inflation, while a slower rise in producer prices provided some relief,” said Vinod Nair, head of research at Geojit Financial Services.
On a weekly basis, the Sensex rose 1,478.38 points, or 2.47 percent, while the Nifty gained 443.05 points, or 2.48 percent. S Hariharan, Head-Sales Trading, Emkay Global Financial Services, said: “Strong guidance from many members of the US FOMC on rising interest rates in CY22, alongside continued imprints of high inflation globally, are creating an unfavorable flow environment for equities in general. ” “The response to strong results from frontline IT names appears to indicate strong prepositioning in the market, and could be a recurring theme for the current earnings season – in that good results are priced in and new catalysts may be needed to continued rally,” he noted. In terms of the sector, BSE telecom, FMCG, healthcare, auto and banking lost a whopping 1.20 percent, while capital goods, real estate, industrials and IT gained. In the broader markets BSE small-cap and mid-cap indices rose to 0.50 percent On the domestic economic front, wholesale price-based inflation bounced off a four-month upward trend in December 2021, declining to 13.56 percent, mainly due to the softening of fuel, power and production items, although food prices became harder.
The country’s exports rose 38.91 percent year-on-year to $37.81 billion in December 2021 on the back of a healthy performance from industries such as engineering, textiles and chemicals, though the trade deficit widened to $21.68 billion this month, according to a report. government data showed on Friday. World stocks plunged after US Federal Reserve officials indicated that interest rates would be raised from March to contain runaway inflation. Elsewhere in Asia, stock markets in Tokyo, Hong Kong, Shanghai and Seoul ended in negative territory. Stock markets in Europe also witnessed selling pressure from mid-session deals.
Meanwhile, the international oil benchmark Brent crude rose 0.86 percent to $85.20 a barrel. The rupee on Friday fell 25 paise to close at 74.15 against the US dollar. Foreign institutional investors (FIIs) were net sellers in the capital market as they sold shares worth Rs 1,390.85 crore on Thursday, according to stock market data.
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