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On Friday, Indian share markets inched higher, extending gains from the previous day on hopes that the US Federal Reserve would pause rate hikes.

A faster-than-expected slowdown in US inflation reinforced bets that the Fed could end its rate hikes soon after July 2023.

Both the benchmark indices logged gains for a third straight week.

At the closing bell, the BSE Sensex stood higher by 502 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 151 points (up 0.8%).

TCS, Tech Mahindra, and Infosys were among the top gainers today.

M&M and Power Grid, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 19,640, up by 82 points, at the time of writing.

The BSE MidCap index advanced 1% while the BSE SmallCap index ended higher by 1.2%.

Sectoral indices ended on a mixed note with stocks in the IT sector, metal sector, and realty sector witnessing most of the buying.

While consumer durable stocks and power stocks witnessed selling.

Shares of MRF, Bajaj Holdings, and Coforge hit their respective 52-week highs today.

PG Electroplast share price was in focus today after the company said it will manufacture LED televisions.

Meanwhile, Monte Carlo Fashions' share price surged 4% after the company declared Q1 results.

Now track the biggest movers of the stock market using stocks to watch today section. This should help you keep updated with the latest developments...

In primary markets, the IPO of Utkarsh SFB received a massive response as the issue was subscribed over 32.5 times as of 1 PM on Friday.

Asian stock markets ended on a positive note. The Hang Seng ended marginally higher while the Nikkei ended flat. The Shanghai Composite advanced 0.1%.

European shares slipped today but registered their biggest weekly percentage jump in over three months on hopes that easing inflation would allow the Federal Reserve could halt its interest rate hikes soon.

US stock futures are trading on a negative note today with Dow Futures trading down by 4 points while Nasdaq futures are down 15 points.

The rupee is trading at 82.16 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 59,228 per 10 grams.

In news from the electric vehicle sector, Chinese EV giant BYD Co has submitted a US$1 billion (bn) investment proposal to build electric vehicles and batteries in India in partnership with a local company.

BYD and Hyderabad-based Megha Engineering privately held discussions and submitted a proposal to Indian regulators to form an EV joint venture.

The company's long-term plan is to build a full line-up of BYD-brand EVs in India from hatchbacks to luxury models.

The world's largest producer of EVs and plug-in hybrid vehicles had earlier said it planned to set up manufacturing in India.

According to reports, BYD's push into India is part of its rapid global expansion to challenge Tesla, which still leads in sales of EVs alone. If the India investment is approved, it would give BYD a presence in all major global car markets with the exception of the US.

Moving on to news from the IT sector, IT companies TCS, Wipro, Infosys, and the like were in focus today as the street remains cautious ahead of Q1 earnings.

You can see the tension building already as the management of these companies has said the deal pipeline remains uncertain. Last year, the management of these companies was over-optimistic about the deal pipeline.

However, a silver lining is that the management is now confident on the margins front.

Margins were hit due to rising employee costs but with the rupee moving in favor of IT companies, companies might once again witness some expansion as the employee cost normalizes.

Speaking of Indian IT stocks, lead chartist at Equitymaster Brijesh Bhatia shared an interesting take on the IT sector this morning.

Here's what he wrote -

The underperformance of Indian IT stocks compared to Nasdaq can be attributed to several factors.
The accumulation phase on the weekly chart of the Nasdaq has been rewarding, leading to a significant uptrend. On the other hand, the accumulation phase on the Nifty IT index is still valid but has not yet broken the resistance zone, indicating a cautious stance.
Understanding these technical aspects, along with considering fundamental factors, can provide insights for investors and market participants interested in the Indian IT sector.
Traders and investors should closely monitor Nifty IT index above 30,000, as it presents a critical zone for potential bullish reversals and accumulation opportunities to enter Phase D.
For the index to catch up with Nasdaq and progress to Phase D, it is crucial for it to initiate a reversal from the mentioned levels.

Nifty IT Index Weekly Chart

(Click on image to enlarge)

 Moving on to news from the FMCG sector, the retail portion of an OFS (offer for sale) by Patanjali Foods was fully subscribed on Friday.

Shares of the company surged 5% to hit an upper circuit of Rs 1,225. The shares in the OFS are being sold at a discounted floor price of Rs 1,000.

The non-retail portion was subscribed 200% on Thursday.

The OFS was to be executed over two days, with the offer opening for non-retail investors on 13 July 2023 and for retail investors on 14 July 2023.

Promoters of the company held an 80.8% stake in the company as of 30 June 2023, which needs to be reduced to 75%. The norms mandate a listed entity to have a minimum public shareholding of 25%.

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