Market close with negative bias on weak global cues

Most European markets remained lower after a drop in the US market yesterday.

Mid and small cap stocks outperformed the key indices. The BSE Midcap index was flat, with a gain of just 0.04 percent while the Smallcap index rose 0.48 percent.

Top losers on Sensex were HCL Tech, Tata Steel and ICICI Bank, on the other hand, the top gainers were Tata Motors, L&T and Powergrid.

“During this week, the benchmark BSE-30 and Nifty-50 were almost flat. However, the BSE Midcap and BSE Small-cap index saw positive gains during the week. Sector-wise, BSE Metal and BSE Power index witnessed sharp correction, whereas BSE Healthcare, BSE IT, BSE capital goods, and BSE Realty reported gains this week. FPI flows in India remained negative,” said Shrikant Chouhan, Head of Equity research (retail), Kotak Securities.

“Q3FY23 earnings of Nifty-50 stocks reported so far have been broadly on expected lines. RBI monetary policy committee raised the repo rate by 25 bps and remained concerned about core inflation. International oil prices rose this week with Brent Crude now trading close to $86-87 per barrel. As the Q3FY23 result season comes towards an end, the investor focus will now shift towards domestic and global macro factors,” he added.

Sectoral indices were also mixed with realty stocks gaining the most, followed by PSU banks. Meanwhile, Metal, IT and FMCG indices were lower.

Adani stocks remained in the news with MSCI reviewing free-float status, and the company hiring a US firm to fight a legal battle. Most Adani group stocks extended their decline in Friday’s session with Adani Total Gas and Adani Transmission hitting the lower circuit. Adani Enterprises shed 3%.

USD/INR closed the day at 82.4825. Indian Rupee appreciated by 0.11% on weak start to crude oil and weakness in gold. However, weak domestic equities and a strong Dollar capped sharp gains. Dollar strengthened on expectations of rate hike by Fed and weak Pound amid disappointing GDP data from UK.

“We expect Rupee to trade with a slight negative bias amid risk aversion in global markets and sharp pullback in crude oil prices. Strong Dollar on hawkish tone of Fed may also put pressure on Rupee. Markets participants may remain cautious ahead of IIP data from India and Michigan consumer sentiment from US. USDINR spot price is expected to trade in a range of ₹82 to ₹83.30,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.