Nifty settles at 21,710.80; IT index out performs

The domestic equity barometers ended with minor gains on Friday. The Nifty settled above the 21,700 level after hitting the day�s low of 21,629.20 in mid-morning trade.

The barometer index, the S&P BSE Sensex advanced 178.58 points or 0.25% to 72,026.15. The Nifty 50 index added 52.20 points or 0.24% to 21,710.80.

In the broader market, the S&P BSE Mid-Cap index shed 0.19% and the S&P BSE Small-Cap index added 0.61%. The market breadth was positive.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 5.25% to 12.63.

Among the sectoral indices, Nifty IT index (up 1.29%), the Nifty Auto index (up 0.44%) and the Nifty Realty index (up 0.36%) outperformed the Nifty50 index.

Meanwhile, the Nifty Healthcare index (down 0.65%), the Nifty PSU Bank index (down 0.38%) and the Nifty Pharma index (down 0.31%) underperformed the Nifty 50 index.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity rose to 59 in December from 56.9 in November, highlighting a sharp increase in output that was the most pronounced since September.

Favourable economic conditions and positive demand trends were the key determinants of output growth, anecdotal evidence showed. Not only did new business intakes rise further in December, but also to the greatest extent in three month, the PMI release stated.

The HSBC India Composite PMI Output increased to 58.5 in December 2023 as against 57.4 in November 2023, signalling a sharp rate of expansion that was the strongest since September.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.22% to 7.236 as compared with previous close 7.220.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.1600, compared with its close of 83.2425 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement shed 0.22% to Rs 62,500.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.33% to 102.76.

The United States 10-year bond yield advanced 1.34% to 4.024.

In the commodities market, Brent crude for February 2024 settlement gained 28 cents or 0.36% to $77.87 a barrel.

Global Markets:

Markets in Europe and Asia declined on Friday as investors were cautious ahead of the release of key European inflation data and the widely-watched monthly U.S. jobs report.

A survey showed on Friday that the contraction in Japan�s private sector activity was over. The au Jibun Bank Japan composite PMI for December came in at 50, rising from 49.6 in the prior month to signal stabilization in Japan�s private sector output.

Wall Street shares settled mixed on Thursday. The S&P SPX and Nasdaq Composite closed lower on Thursday, extending their losing streak that kicked off 2024, although the Dow Jones Industrial eked out a win on the back of financial stocks and strong jobs data. Markets were now focused on key U.S. nonfarm payrolls data for December, due later in the day.

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