Market opens on a weak note; breadth weak

The domestic equities drifted lower in early trade on weak global stocks. Sentiment was impacted after US Federal Reserve meeting minutes signaled that the central bank may have to raise interest rates sooner than expected.

At 9:30 IST, the barometer index, the S&P BSE Sensex, dropped 723.69 points or 1.20% at 59,499.46. The Nifty 50 index tumbled 209.45 points or 1.17% at 17,715.80.

In the broader market, the S&P BSE Mid-Cap index fell 0.80% while the S&P BSE Small-Cap index lost 0.82%.

The market breadth was weak. On the BSE, 1,029 shares rose and 1,779 shares fell. A total of 80 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 336.83 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,271.95 crore in the Indian equity market on 5 January 2022, provisional data showed.

Economy:

As per a credit rating agency based in India, the third wave of the pandemic, which has seen a massive spike in infections after the more infectious Omicron variant of the coronavirus appeared, is likely to shave 40 bps off the fourth quarter GDP growth that may print in at 4.5-5%.

Stocks in Spotlight:

NHPC rose 1.90%. The company informed that promoters agreement has been signed between NHPC and Green Energy Development Corporation of Odisha (GEDCOL) for formation of JV company for development of 500 MW (mega-watt) floating solar power projects in various water reservoirs in Odisha.

RBL Bank lost 0.26%. The bank said that its gross advances rose 5% to Rs 59,941 crore as on 31 December 2021 as against Rs 57,092 recorded on 31 December 2020.

Anand Rathi Wealth shed 0.53%. The wealth management company will today announce its results for the period ended on 31 December 2021 and declare interim dividend for the financial year 2021-22, if any.

Hinduja Global Solutions gained 0.23%. The company's board will meet today to consider declaration of interim dividend, if any, for the financial year 2021-22; and proposal for declaration of bonus issue of equity shares.

Global Markets:

Asian stocks declined across the board on Thursday, 6 January 2022 following overnight losses on the Wall Street. Activity in China's services sector expanded at a faster pace in December, a private sector survey showed on Thursday. The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 53.1 in December from 52.1 in November.

Japan's services sector activity expanded at a slower pace in December. The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) dropped to a seasonally adjusted 52.1 from the prior month's 53.0, which was the highest reading since August 2019.

US stocks fell sharply on Wednesday after U.S. Federal Reserve meeting minutes signaled the central bank may raise interest rates sooner than expected.

The minutes from the Federal Reserve's most recent meeting showed the central bank has discussed reducing its balance sheet shortly after it raises rates later this year. The minutes show officials to be considering shrinking the balance sheet along with raising rates as another way to remove policy accommodation. The Fed also signaled it could get more aggressive in raising rates.

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