The domestic equity barometers sharply pared most of the day's gains in mid-afternoon trade. After hitting the day's high at 16,025.75 in early afternoon trade, the Nifty slipped below the 15,900 level. IT shares extended their decline for second consecutive session.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was up 86.67 points or 0.16% to 53,321.44. The Nifty 50 index added 27.45 points or 0.17% to 15,862.80.

In the broader market, the S&P BSE Mid-Cap index shed 0.02% while the S&P BSE Small-Cap index gained 0.50%.

The market breadth was positive. On the BSE, 1912 shares rose and 1342 shares fell. A total of 148 shares were unchanged.

Economy:

India's services industry expanded at the fastest pace in over eleven years in June, as per the S&P Global India services PMI data. June data pointed to further accelerations in growth of new business and output at Indian services companies amid ongoing improvements in demand conditions. Although firms expect the recovery to be sustained over the coming 12 months, concerns surrounding price pressures restricted business confidence. Input costs continued to rise at a historically elevated pace, although one that was the slowest in three months, while charge inflation hit a near five-year high.

Rising from 58.9 in May to 59.2 in June, the seasonally adjusted S&P Global India Services PMI Business Activity Index was at its highest mark since April 2011 and signalled a steep rate of increase. Moreover, the acceleration in growth was broad-based across the four monitored sub-sectors. Services firms noted a substantial upturn in new work intakes at the end of the first fiscal quarter, with the rate of increase improving to the best in over 11 years.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.395% as compared with 7.374% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 79.1200, compared with its close of 78.9500 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement lost 0.04% to Rs 52,101.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.80% to 105.98.

In the commodities market, Brent crude for September 2022 settlement advanced $1.96 or 1.76% at $113.59 a barrel.

Buzzing Index:

The Nifty IT index slipped 0.53% to 27,742.55. The index has declined 1.15% in two sessions.

Mphasis (down 2.28%), Mindtree (down 1.07%), Wipro (down 0.99%), Tata Consultancy Services (down 0.43%) and Larsen & Toubro Infotech (down 0.26%) were the top index losers.

On the other hand, Coforge (up 0.74%), L&T Technology Services (up 0.19%) and HCL Technologies (up 0.14%) moved up.

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