The equity benchmarks settled with sharp gains on Friday. The Sensex jumped 1.5% while the NIfty ended above 17,850 mark. The broader indices, however, ended with small losses. Banks and financial services stocks rallied. On the other hand, pharma, healthcare and energy shares declined. The barometer index, the S&P BSE Sensex jumped 909.64 points or 1.52% to 60,841.88. The Nifty 50 index gained 243.65 points or 1.38% to 17,854.05. The broader market underperformed the headline indices. The S&P BSE Mid-Cap index shed 0.04% while the S&P BSE Small-Cap index fell 0.47%.

The market breadth was weak. On the BSE, 1,237 shares rose and 2,310 shares fell. A total of 121 shares were unchanged.

Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 8.48% to 14.40.

India Services PMI:

The S&P Global India services Purchasing Managers' Index (PMI) fell to 57.2 in January as compared to 58.5 in December. It has been above the key level of 50 that separates growth from contraction for an eighteenth straight month.

Meanwhile, the S&P Global India Composite PMI Output Index fell from December's near 11-year high of 59.4 to 57.5 in January. Manufacturing production increased at a stronger rate than services activity, but growth moderated in both cases.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.278 from its close of 7.296 recorded in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.91, compared with its close of 82.2050 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement declined 0.32% to Rs 57,508.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.12% to 101.63.

The United States 10-year bond yield lost 0.22% to 3.390.

In the commodities market, Brent crude for April 2023 settlement shed 6 cents or 0.07% to $82.11 a barrel.

Global Markets:

The Dow Jones futures were down 69 points, indicating a negative opening in the US stock market today.

Shares in Europe and Asia were mixed on Friday as investors digested monetary policy outcome across major central banks.

In Europe, the Bank of England raised interest rates by half a percentage point Thursday as it sought to tame double-digit inflation that is fueling a cost-of-living crisis, public-sector strikes and fears of recession. The bank's monetary policy committee voted 7-2 to push its key rate to 4%.

China's service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers' index (PMI). The reading rose to 52.9 in January, from the business activity index of 48 seen in December.

The au Jibun Bank Japan services purchasing managers' index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.

Meanwhile, travel between mainland China and Hong Kong as well as Macao will fully resume on Feb. 6, China's Hong Kong and Macao Affairs Office of the State Council said in an announcement.

The release said mandatory tests for most travelers will be dropped, and group tours between the regions will also resume.

The latest measures come after China scrapped its quarantine measures for international travelers and reopened its borders on Jan. 8, in an essential end to its zero-Covid policy.

US stocks ended mixed on Thursday, as investors turned their focus to a handful of key earnings reports due from mega-cap tech firms after the closing bell.

Stocks in Spotlight:

Adani Enterprises dropped 35% intraday after getting ejected from Dow Jones Sustainability Indices. The stock bounced sharply to end 1.25% higher after Fitch and Moody's retained their credit rating on Adani Group companies.

The National Stock Exchange (NSE) has put Adani Enterprises, Adani Ports & SEZ and Ambuja Cements under additional surveillance measure (ASM) framework effective 3 February 2023.

State Bank of India rose 3.12%. The PSU major reported 68.47% jump in standalone net profit to Rs 14,205.34 crore on a 25.18% rise in total income to Rs 98,083.77 crore in Q3 FY23 over Q3 FY22. Net Interest Income (NII) increased by 24.05% YoY to Rs 38,069 crore during the quarter. Net Interest Margin (domestic) was at 3.69% in Q3 FY23 as against 3.40% in Q3 FY22.

InterGlobe Aviation (Indigo) fell 1.28%. The company reported a consolidated net profit of Rs 1,422.6 crore in Q3 FY23, steeply higher than Rs 129.79 crore posted in Q3 FY22. Revenue from operations surged 60.66% to Rs 14,932.97 crore in the quarter ended 31 December 2022 from Rs 9,294.77 crore recorded in Q3 FY22.

Marico fell 1.16%. The company reported 6% rise in consolidated net profit to Rs 328 crore on a 3% increase in revenue from operations to Rs 2,470 crore in Q3 FY23 over Q3 FY22. The company said revenue growth was supported by an underlying volume growth of 4% in the domestic business and constant currency growth of 8% in the international business.

IndusInd Bank jumped 2.61% on reports that promoter Hinduja Group will invest Rs 1,000 crore.

Paytm fell 3.83% after Douglas Feagin resigned from the board ahead of their Q3 results later today.

Teamlease Services rose 3.61%. The company will buy back 3.27 lakh shares at Rs 3,050 apiece.

Bank of Baroda jumped 6.20% after the bank's net profit jumped 75.4% to Rs 3,852.74 crore on 32.27% rise in total income to Rs 27,092.09 crore in Q3 FY23 over Q3 FY22.

Likhitha Infrastructure rose 5.56% after the company secured an order worth Rs 129.63 crore from GAIL (India).