Indian markets trend lower as global cues weigh on sentiments

• On Friday, the Sensex was down 0.25% at 60,682 while the Nifty50 was lower by 0.17% at 18,022.
• Analysts said investors are likely to stay cautious post strong rate increases by central banks around the world.
• On the domestic front, corporate earnings in Q2 have also not been great, which is weighing on the investor sentiment, say analysts.

Indian benchmark indices on Friday were trading lower tracking global markets, which remained under pressure as the interest hikes by the US and the UK weighed on sentiments.

At 10.58 am, the Sensex was down 0.25% at 60,682 while the Nifty50 was lower by 0.17% at 18,022.

“Investors continue to remain cautious as central banks say the hawkish stance to combat inflation will not ease out soon with the Bank of England also increasing its benchmark rate by 75 basis points,” said analysts at ICICIdirect Research.

On November 2, the US Federal Reserve raised its benchmark interest rate by 75 basis points and its Chairman Jerome Powell said it would continue to hike rates till inflation was brought under control. After the US, the Bank of England also announced a 75 basis points interest rate hike – its largest in three decades, to tackle inflation.

On the domestic front, corporate earnings in Q2 have also not been great, which is weighing on investor sentiments, analysts said.

“2QFY23 earnings season has been disappointing until now, with aggregate net profits of the Nifty-50 Index coming in 4.6% below estimates and 7.7% excluding financials. We note that broad weakness across sectors, excluding financials, limits the chances of earnings upgrades,” said a report by Kotak Institutional Equities.

Sectoral indices of IT, banks, FMCG and pharma were trading in the red. Heavyweights like RIL, Bajaj Finserv, and Bajaj Finance, ITC stalled the index from falling further.

Hero MotoCorp was the biggest loser on the Sensex after the two-wheeler maker announced a 10% year-on-year fall in net profit at ₹716 crore for the quarter ended September.

Top gainers	% change	Top losers	% change
Bajaj Finserv	3.31%	Hero MotoCorp	-1.83%
Hindalco Industries	1.99%	BPCL	-1.67%
Ultratech Cement	1.86%	Divi’s Laboratories	-1.50%
JSW Steel	1.76%	Infosys	-1.39%
Eicher Motors	1.15%	Dr Reddy’s Laboratories	-1.20%

Further, shares of Britannia Industries, Titan, TVS Motor Company, Aditya Birla Fashion and Retail, Gail (India) and Cummins India will be in focus as these companies are expected to report their quarterly financial results on Friday.

Today is also the last day to subscribe to the IPO of microfinance lender Fusion Micro Finance.

Bikaji Foods International and Global Health, owner of Medanta Hospitals are the other two ongoing IPOs.

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