The domestic equity market inched lower on Friday amid subdued global cues after the US Federal Reserve left key interest rates unchanged but hinted at a rate hike in December. The BSE Sensex closed 79.13 points, or 0.22 per cent, down at 35,158 while NSE’s Nifty closed 13.20 points, or 0.12 per cent, down at 10,585.
A warning by Moody’s Investors Service that Indian economy will expand 7.4 per cent in 2018, but will slow down to 7.3 per cent next year due to rising interest rates also hurt market sentiments.
Moody’s said the greatest downside risk to India’s growth prospects stem from concerns about its financial sector. Report that India’s unemployment rate rose to 6.9 per cent in October, the highest in two years, also dented the mood.
Only 28 stocks in the Nifty pack closed in the green with YES Bank, HPCL, Indiabulls Housing Finance, Adani Ports and Asian Paints gaining up to 5.37 per cent. On the other hand, Bharti Airtel, Infosys, Hindalco, Dr Reddy’s Labs and GAIL dipped between 1.90 per cent and 3 per cent.
Let’s walk you through the proceedings of Friday’s market:
Sweet deal from China
Sugar stocks rallied up to 8 per cent after reports that India in 2019 will resume exporting raw sugar to China, as it eyes overseas markets to clear surplus stocks that have muted prices and created financial distress in mills. Triveni Engineering rallied 7.74 per cent, followed by Dalmia Bharat Sugar (up 5.22 per cent), Ugar Sugar (up 5 per cent) and Dhampur Sugar (up 4.90 per cent).
Airtel’s rating at risk?
Shares of Bharti Airtel plunged over 2 per cent after Moody’s Investors Service placed the telecom major’s rating on review for a downgrade, following low levels of profitability and expectation of weak cash flow.
Top sectoral gainers
Among the sectoral indices on BSE, Healthcare, Consumer Durables and Auto indices gained 1.08 per cent, 0.85 per cent and 0.55 per cent, respectively, despite some selling. However, the IT, TECk, Metal and Telecom indices slipped up to 1.20 per cent.
Spurt in open interest
Indian Bank witnessed the biggest spike in open interest at 116.35 per cent, followed by Orient Bank (29.52 per cent), NHPC (24.28 per cent) and Amara Raja Batteries (23.74 per cent).
Asian markets end in red
Most of the Asian peers ended lower after the Federal Reserve maintained its hawkish stance and the populist government in Rome flatly dismissed EU’s more pessimistic outlook for the Italian economy, deepening a rift. Nikkei225 closed 1.06 per cent down at 22,250, while Shanghai and Hang Seng dipped up to 2.44 per cent.
Stocks at fresh 52-week high/low
More than 25 stocks scaled fresh 52-week low on the National Stock Exchange. Some of the stocks in the list included ABG Shipyard, Alchemist, Assam Company, Hotel Leela Venture, Indosolar, MVL and Navkar Corporation. On the other hand, Usha Martin, Tijaria Polypipes, Divi’s Laboratories and Birla Cable hit their fresh 52-week high.
OMC, paint stocks gain
Shares of oil marketing players as well as paint companies moved higher following softening crude oil prices. Shares of HPCL, IOCL and BPCL gained up to 5 per cent, while paint manufacturers Kansai Nerolac, Berger Paints and Asian Paints gained up to 3.50 per cent. Brent oil price slipped below $70 a barrel in the international market amid rising supply and concerns over demand pressure due to an economic slowdown. US crude is now down 20 per cent since early October.
Titan inched down ahead of result
Shares of Titan Company closed 0.37 per cent down at Rs 848 on the BSE ahead of its financial results later in the day. The company reported flat profit growth for the quarter later in the day.
Most active stocks
Reliance Industries, YES Bank, Axis Bank, HDFC, Maruti Suzuki and PC Jeweller were the most active stocks in terms of volume while Infibeam, PC Jeweller, JP Associates, and YES Bank emerged as the most active stocks in terms of value.
Who moved my Sensex
Reliance Industries, Infosys, TCS, ITC, and HDFC Bank put maximum pressure on the index, while HUL, YES Bank, Asian Paints, Maruti Suzuki, Sun Pharma, and Vedanta capped the downside.
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