FIRST TRADE: Sensex slips over 150 pts, Nifty below 22,700; Sun Pharma down over 2%

Stock market today: Domestic blue-chip indices on Friday (April 12) slipped as hot U.S. inflation data eroded hopes of early Federal Reserve rate cuts, while focus turns to the domestic earnings season with Tata Consultancy Services set to report later in the day.

Last seen, both indices lost over 0.40 per cent, S&P BSE Sensex slipped 305.09 points at 74,733.06 and NSE Nifty was down 91.25 points at 22,662.55. 

"The hotter-than-expected US inflation has spiked the US bond yields. This is negative for FPI inflows but is unlikely to impact the Indian market which is resilient, and the rally is driven mainly by domestic liquidity. Dips are likely to get bought imparting strength to the market. Therefore, investors may use the dips to buy high-quality large-caps where the margin of safety is high," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. 

Dr. V K Vijayakumar added from the global equity market perspective sticky US inflation is a negative since it has reduced hopes of three rate cuts by the US. But it is important to note that there is a real positive factor in the sticky inflation, and that is the exceptionally strong US economy which is showing no signs of a slowdown, leave alone recession. 

Further, he said this resilience of the US economy will support earnings growth and, therefore, the US stock market. This favourable backdrop will be positive for other markets including India.

In the broader market, Nifty Mid Cap 100 and Small Cap 100 traded in positive territory. Nifty Bank was down 0.23 per cent at 48,872.

BUZZING STOCKS

Metropolis shares were up over 5 per cent after the company in its Q4 update said its core business revenue is likely to grow 15 per cent year-on-year (YoY).

Maha Seamless shares were up over 4 per cent after the company received an order worth Rs 674 crore from ONGC.

Conversely, Sun Pharma shares were up over 1 per cent after the company's Dadra facility received OAI inspection status from USFDA.

GLOBAL MARKETS 

Asian equities were in a subdued mood on Friday as investors pondered the path for Federal Reserve interest rate cuts amid a murky U.S. inflation outlook.

Gold rose to a fresh all-time peak after a mild reading for producer price inflation kept alive hopes for Fed easing this year, though U.S. Treasury yields stuck close to five-month highs in the wake of hotter-than-expected consumer price data mid-week that forced a paring back of rate cut bets.

(With inputs from agencies.)

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