Bullish 2023 bids adieu to markets witnessing a dull day, Sensex down 170 points, Nifty slips 47 points

Mumbai:Equity indices Sensex and Nifty declined on the last trading day of 2023 as investors preferred profit-taking after the recent sharp rally, finishing a record-setting year with benchmarks surging by up to 20 per cent.

After a five-day winning run, selling pressure emerged in energy, banking and IT counters on Friday, which dragged indices lower, traders said.

The 30-share BSE Sensex fell 170.12 points or 0.23 per cent to settle at 72,240.26 after a weak beginning to the trade. During the day, it dropped 327.74 points or 0.45 per cent to 72,082.64.

The wider gauge Nifty declined 47.30 points or 0.22 per cent to settle at 21,731.40. In intra-day trade, the index slipped 101.8 points or 0.46 per cent to 21,676.90.

In 2023, the BSE benchmark jumped 11,399.52 points or 18.73 per cent, and the Nifty climbed 3,626.1 points or 20 per cent.

Among the Sensex firms, State Bank of India, Infosys, Titan, Tech Mahindra, IndusInd Bank, NTPC, ICICI Bank, Power Grid, Reliance Industries and Kotak Mahindra Bank were the major laggards.

On the other hand, Tata Motors, Nestle, Hindustan Unilever, Tata Steel, Bajaj Finance and UltraTech Cement were among the gainers.

"The market witnessed mild profit booking on the last trading day of the year. The euphoria is expected to continue during the start of the next year on account of the exuberance of rate cuts and the drop in bond yields. Oil prices, on the other hand, fell by 10 per cent during the year, which could ease inflationary pressure and support the operating performance of the corporates.

"We feel that though the outlook on broader indexes is moderate in the short to medium term, the large caps will maintain their vibrancy due to strong earnings growth and in anticipation of the continuation of premium valuation," said Vinod Nair, Head of Research, Geojit Financial Services.

In Asian markets, Tokyo settled lower while Shanghai and Hong Kong ended with gains. Markets were closed in South Korea.

European markets were trading in positive territory. The US markets ended on a mixed note on Thursday.

Rising for the fifth consecutive day, the BSE benchmark jumped 371.95 points, or 0.52 per cent, to settle at an all-time closing high of 72,410.38 on Thursday.

The Nifty climbed 123.95 points, or 0.57 per cent, to settle at a fresh record of 21,778.70.

In the last five trading sessions, the BSE benchmark rallied 1,904.07 points or 2.70 per cent, and the Nifty climbed 628.55 points or 2.97 per cent.

Global oil benchmark Brent crude climbed 0.86 per cent to USD 77.81 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 4,358.99 crore on Thursday, according to exchange data.

Rupee flat at 83.20

Mumbai:  The rupee paired all its early gains to end on a flat note at 83.20 (provisional) against the US dollar amid increased month-end dollar demand from importers and volatile crude oil prices.

At the interbank foreign exchange, the domestic currency opened at 83.14, touched the peak of 83.10 and hit the lowest level of 83.22 against the greenback during intra-day deals. The local unit closed the session at Thursday's closing level of 83.20 (provisional) against the dollar.

The domestic currency jumped 14 paise on Thursday.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.13 per cent at 101.36 on Friday.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the US dollar recovered slightly on short coverings but declined again on expectations of interest rate cuts by the US Federal Reserve.

The rupee is likely to trade with a slight positive bias on the weak tone of the US dollar and declining crude oil prices. Fresh foreign inflows may also support the domestic currency, he added.

"Month-end dollar demand from OMCs and importers may weigh on the rupee at higher levels. Traders may take cues from India's fiscal deficit and Chicago PMI data from the US. USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50," Choudhary added.

Oil moves up 0.66% at $77.66

New Delhi: Crude oil futures on Friday declined 0.41 per cent to Rs 6,023 per barrel as participants trimmed their positions on low demand.

On the Multi Commodity Exchange, crude oil for January delivery fell Rs 25 or 0.41 per cent to Rs 6,023 per barrel with a business volume of 14,758 lots.

Globally, West Texas Intermediate crude oil traded 0.49 per cent higher at $72.12 per barrel, while Brent crude was trading up 0.66 per cent at USD 77.66 per barrel in New York.

Gold sheds Rs 350, Silver 1,000

New Delhi: Gold prices tumbled Rs 350 to Rs 63,950 per 10 grams in the national capital on Friday amid weak cues in global markets, according to HDFC Securities.

In the previous trade, the precious metal had closed at Rs 64,300 per 10 grams.

Silver also plummeted Rs 1,000 to Rs 78,500 per kilogram, while it had settled at Rs 79,500 per kg in the previous close.

Meanwhile, in the futures trade, the February contract of gold declined Rs 244 to Rs 63,145 per 10 grams on the MCX. Also, the March contract of silver plunged Rs 1,166 to Rs 73,793 per kilogram on the bourse.

In the overseas markets, gold and silver were trading lower at $2,070 per ounce and USD 23.80 per ounce, respectively.

Spot gold at Comex was trading at USD 2,070 per ounce, down by USD 10 from the previous close in the international markets.

Comex gold dropped as traders locked profit after the precious metal prices hit a three-week high in the previous session, HDFC Securities' Senior Analyst of Commodities Saumil Gandhi said.

Following a recovery in the dollar and rising US Treasury yields are also additional factors that weighed down on the yellow metal, Gandhi added.