Barometers trim losses, Nifty above 17,800 level

The benchmark indices pared some losses in mid-morning trade. The Nifty traded above the 17,800 level after hitting the day's low of 17,774.25 in morning trade. Consumer durables shares extended losses for the fifth consecutive trading session. The domestic and U.S. inflation eased, capped some of the losses and reinforced hopes that central banks could slow the pace of aggressive interest rate hikes.

At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 176.72 points or 0.29% to 59,781.31. The Nifty 50 index lost 38.85 points or 0.22% to 17,819.35.

In the broader market, the S&P BSE Mid-Cap index fell 0.45% while the S&P BSE Small-Cap index shed 0.05%.

The market breadth was positive. On the BSE, 1,661 shares rose, and 1,589 shares fell. A total of 167 shares were unchanged.

Economy:

India's consumer price inflation eased further to a one-year low of 5.72% in December from 5.88% the previous month, data released by the Ministry of Statistics and Programme Implementation (MOSPI) showed. This is the third month in a row that CPI inflation has fallen. The Food inflation eased sharply to 4.19% in December compared to 4.67% in previous month.

Meanwhile, India's factory output based on the Index of Industrial Production (IIP) rose 7.1% year on year in the month of November, MOSPI data showed on Thursday. For the April-November period, the index grew by 5.5%. IIP had contracted by 4% YoY in October.

Buzzing Index:

The Nifty Consumer Durables index fell 0.90% to 24,854.70. The index slipped 2.34% in five trading sessions.

Bata India (down 4.7%), Whirlpool of India (down 2.97%), Rajesh Exports (down 0.95%), Kajaria Ceramics (down 0.93%), Dixon Technologies (India) (down 0.9%), Crompton Greaves Consumer Electricals (down 0.83%), Relaxo Footwears (down 0.82%), Titan Company (down 0.64%), Amber Enterprises India (down 0.44%) and Havells India (down 0.44%) declined.

Stocks in Spotlight:

Kolte-Patil Developers rallied 4.11% after the company recorded 28% jump in sales value to Rs 716 crore in Q3 FY23 from Rs 561 crore in Q3 FY22. Sales volume increased by 31% to 1.13 million square feet in Q3 FY23 from 0.86 million square feet in Q3 FY22. The company's sales value and sales volume are higher by 95% and 102%, respectively, as compared with Q2 FY23.

Rail Vikas Nigam advanced 4.09% after the company informed that it has been awarded a letter of award (LoA) by Southern Railway for automatic block signaling in Chennai. The total cost of the project is Rs 38.97 crore and is to be executed in 15 months.

Global Markets:

Most Asian stocks advanced after the U.S. consumer price index showed inflation cooled in December, raising investors' hopes that the Federal Reserve can return to slower interest rate hikes.

US stocks climbed on Thursday after a reading of consumer prices fed expectations the Federal Reserve may have the leeway to scale back the size of future interest rate hikes.

A key gauge of US inflation posted a moderate increase in December. Excluding food and energy, the consumer price index rose 0.3% last month and was up 5.7% from a year earlier, according to a US Labor Department report on Thursday. The overall CPI fell 0.1% from the prior month, with cheaper energy costs fueling the first decline in 2 1/2 years. The measure was up 6.5% from a year earlier.

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