The benchmark indices started Friday’s trade on a negative note amid mixed trade in Asia on softer-than-expected US inflation
The benchmark indices started Friday’s trade on a negative note amid mixed trade in Asia on softer-than-expected US inflation but growing tensions between the US and China. Besides, higher forecast of domestic inflation by the Reserve Bank of India (RBI), too, weighed on the sentiment.
The S&P BSE Sensex quoted at 65,548 levels in early deals, down 141 points, while the Nifty50 was at 19,498 levels, down 45 points.
In the broader markets, the BSE MidCap and SmallCap indices were ruling higher with 0.3 per cent gain each
Among individual stocks, shares of Zee Entertainment were flat after 18-per cent surge on Thursday after the NCLT approved its merger with Sony India on Thursday.
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Those of LIC, meanwhile, surged 4 per cent after the company’s Q1 net profit more than doubled to Rs 9,543.71 crore for the quarter ended June 2023 when compared with Rs 4,831.65 crore in the same quarter a year ago. Its total premium income came in flat at Rs 98,363 crore.
Shares of HCL Tech, too, surged over 4 per cent as it signed a deal worth $2.1 billion with Verizon Business, the enterprise arm of US-based Verizon Communications, for providing primary managed network services (MNS) for the latter’s global enterprise customers.
Among sectors, the Nifty IT index advanced 0.7 per cent, while the Nifty Metal, Bank, Pharma, and Financial Services indices dropped 0.4 per cent each.
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Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Inflation data from the US indicate that the soft landing narrative is in tact. The Fed is likely to pause in September. This will support global equity markets. The only negative from the RBI’s message yesterday is the hike in CRR to neutralise the excess liquidity created by the withdrawal of the Rs 2000 notes. The sentimental impact of this decision is unlikely to last long since it will not impact the banking sector’s bottom line much since the NPAs of banks are coming down and the credit growth in the economy is good. The indication from the RBI is that a rate cut can be expected only in Q1 of FY 25. This will be a headwind for the market. But the market is likely to remain strong. Banks, capital goods and autos are likely to do well, going forward.”
