Barometers trade with significant cuts; IT stocks decline

The key equity barometers traded with significant cuts, near the day's low in mid-afternoon trade. The Nifty traded below the 17,150 level. IT shares witnessed some bit of profit booking after advancing in the past three sessions.

At 14:22 IST, the barometer index, the S&P BSE Sensex was down 346.06 points or 0.60% to 57,249.62. The Nifty 50 index lost 104.45 points or 0.61% to 17,118.30.

In broader market, the S&P BSE Mid-Cap index fell 0.40% while the S&P BSE Small-Cap index slipped 0.24%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 1,321 rose and 2,027 shares fell. A total of 123 shares were unchanged.

Economy:

India's projected economic growth for 2022 has been downgraded by over 2% to 4.6% by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday.

The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk. The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.

Buzzing Index:

The Nifty IT index fell 1.34% to 36,028.85. The index had advanced 3.22% in the past three sessions.

Tech Mahindra (down 2.57%), L&T Technology Services (down 2.14%), Wipro (down 1.79%), TCS (down 1.33%), Coforge (down 1.16%), Infosys (down 1.11%), HCL Tech (down 0.99%), Mphasis (down 0.73%) and Larsen & Toubro Infotech (down 0.53%) declined.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.829% compared with 6.831% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.3350, compared with its close of 76.3900 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement added 0.13% to Rs 51,833.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 98.74.

In the commodities market, Brent crude for May 2022 settlement shed 48 cents or 0.39% $122.08 a barrel.

Global Markets:

European markets edged lower while most Asian stocks traded lower on Friday.

Russian shares endured a wild ride on Thursday as they returned to limited trading after a month on the sidelines following the country's invasion of Ukraine, and subsequent punitive international sanctions.

The volatility looks set to continue, and the MOEX Russia Index pulled back in early trade in Moscow on Friday.

US stocks rose following choppy trading on Thursday, as investors watched western leaders present a unified front against Russia's invasion of Ukraine. Technology companies lifted US stock indices after a sharp fall in the previous session.

Global markets have been tracking negotiations over Russia's invasion of Ukraine closely, and Thursday saw a host of high-level meetings between world leaders and international bodies.

NATO committed extra troops along its eastern flank, the U.K. and U.S. rolled out more sanctions against Russian elites and officials, and the U.S. announced billions more in aid to Ukraine.

It comes as markets endure another choppy week, with a hawkish pivot from the U.S. Federal Reserve fueling bets that monetary policy will be tightened aggressively in a bid to rein in runaway inflation.

US President Joe Biden said Thursday that NATO would respond in kind if Russia uses weapons of mass destruction in Ukraine. The president spoke after a marathon of summit meetings with the European Union, G-7 partners and NATO allies. Biden also said he would support an effort to expel Russia from the G-20 group of economies.

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