Indices drift lower in early trade; Nifty below 18,050

The key equity benchmarks traded with tiny losses in early trade. The Nifty traded below the 18,050 mark. FMCG, auto and pharma shares advanced while financial services, media and bank stocks declined.

At 09:24 IST, the barometer index, the S&P BSE Sensex, was down 38.51 points or 0.06% to 60,618.94. The Nifty 50 index lost 6.10 points or 0.03% to 18,036.85.

In the broader market, the S&P BSE Mid-Cap index rose 0.08% while the S&P BSE Small-Cap index gained 0.33%.

The market breadth was positive. On the BSE, 1,492 shares rose and 923 shares fell. A total of 133 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,620.89 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 773.58 crore in the Indian equity market on 4 January, provisional data showed.

Stocks in Spotlight:

Hindustan Unilever (HUL) advanced 0.40%. HUL has completed the acquisition of 19.8% shareholding of Nutritionalab, for a total consideration of Rs 70 crore in accordance with the terms and conditions of the Definitive Agreements dated 8 December 2022.

NTPC rose 1.02%. NTPC Green Energy (NGEL) (wholly owned subsidiary of NTPC) signed a non-binding Memorandum of Understanding (MoU) with Hindustan Petroleum Corporation Ltd (HPCL) for Development of Renewable Energy based Power Projects to tap Business opportunities in RE and supply of 400 MW round the clock renewable power for requirements of HPCL.

HPCL was up 0.85%. Hindustan Petroleum Corporation has forayed into petrochemical business with pre-marketing of �HP DURAPOL� brand polymers. This is a pre-cursor to marketing of HPCL Rajasthan Refinery Limited (HRRL) petrochemical products. HRRL is setting up a new 9 MMTPA capacity grass root Refinery-cum petrochemical complex at Pachpadra in District Barmer, Rajasthan.

Global markets:

Asian stocks were trading mostly higher as investors shrug off the U.S. Federal Reserve`s commitment to higher interest rates in tackling inflation.

The Caixin China general services purchasing manager`s index showed easing of pressure on the sector for the month of December, with a reading of 48, maintaining in contraction territory. The print rose from seeing a six-month low in the previous month with a reading of 46.7.

US stocks snapped a two-day losing streak as Fed minutes released Wednesday from the December meeting showed higher interest rates are to remain as long as inflation stays high.

The Federal Reserve released the minutes from its Dec. 13-14 meeting, which showed central bank officials expect rates to be higher for �some time.� �In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy.�

US manufacturing contracted further in December. The Institute for Supply Management (ISM) said on Wednesday that its manufacturing PMI dropped to 48.4 last month from 49.0 in November, contracting for a second straight month.

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