India’s benchmark indexes fell on Friday as financials and IT stocks pulled back after rallying in the previous session, while investors await the start of the corporate earnings season next week for more cues.
The Nifty 50 was down 0.57% at 24,052.5 points as of 10:18 a.m. IST, while the BSE Sensex shed 0.65% to 79,460.01. Eight of the 13 major sectors logged losses. Heavyweight financials shed 0.7%, while IT , the second-heaviest sector, lost 1%.
The IT and financial indexes gained 2.3% and 1.6%, respectively, in the previous session, leading the benchmarks 1.9% higher to notch their best session in six weeks.
IT firms Tata Consultancy Services and Infosys lost about 1.25% each on the day, after rising 1.5% and 4%, respectively, on Thursday.
“The pullback in IT stocks as well as the benchmarks is expected after the sharp rise in the previous session,” said Aditya Gaggar, a director at Progressive Shares.
While market sentiment remains positive after mostly upbeat business updates for December, the earnings will determine the near-term market trajectory, two analysts said.
The broader, more domestically-focussed smallcaps rose about 0.4%, while midcaps traded flat, on Friday.
Other Asian markets rose on the day, while Wall Street equities closed lower overnight. Among individual stocks, two-wheeler maker Hero MotoCorp lost 2.1% after reporting a drop in December monthly sales.
Indian shares set to rise at the open
Hero MotoCorp was the top Nifty 50 loser by percentage.
On the flip side, Avenue Supermarts surged 15% after the D-mart supermarket operator said its standalone revenue in the December quarter grew 17.5% year-on-year.
Wockhardt gained 6.7% after India’s drug regulator approved the firm’s oral antibiotic, used for the treatment of bacterial pneumonia. ONGC rose 3.3% after Jefferies reiterated its “buy” rating, saying that the “30% correction in the stock in the past three-months appeared overdone.”
Source: Brecorder
