Following a recent surge, information technology (IT) equities saw a decline, which contributed to Friday’s flat performance on Indian markets.
As of 10:06 a.m. IST, the S&P BSE Sensex was down 0.06% at 65,975.86 points while the NSE Nifty 50 index was down 0.05% at 19,791.40 points.
On the other hand, due to views that interest rates have peaked in the US and Europe, both benchmarks are expected to rise for the fourth consecutive week.
“The trend for domestic stocks is still positive. However, given that some investors would be holding onto their money before the outcome of the state assembly election, the Nifty 50 might see more consolidation,” Marcellus Investment Management founder Pramod Gubbi stated.
On December 3, the results of five state elections in India will be made public. These results might determine the direction of the markets leading up to the 2024 national elections, according to three analysts.
IT saw a 0.42% loss. Since November 14, when the Federal Reserve may be done hiking interest rates due to disappointing U.S. inflation statistics, IT companies—a large portion of which comes from the U.S.—have gained 6.30% in six sessions. But the index lost almost 1%, suggesting that the rise has petered out.
Pharma gained 1.2% after losing 1.57% the previous session, trailed by Cipla following the release of a warning letter from the US drug authority.
The top Nifty 50 gainers were Cipla, Divi’s Laboratories, and Dr. Reddy’s Laboratories, which all saw increases of 1.3% to 2%.
Due to U.S. FDA approvals for diabetic and cataract medications, Lupin had a 2.4% increase in individual stock price.
Following a rise in lump iron ore prices, NMDC saw a 2.2% gain.
One 97 Communications, the Paytm operator, suffered a 3% loss following the two-block transfer of 15.76 million shares, or around 2.5% of the company’s ownership, according to LSEG statistics.