NIFTY50 trades lower dragged by HDFC Bank, Nifty IT sheds gains

On Friday, the NIFTY50 index hit a fresh all-time high at the opening bell. However, it soon turned lower, and as the day progressed amid continued profit booking. Consequently, the index slipped below the 23,500 mark.

Buying interest emerged at lower levels of around the 23,500 mark as aggressive put (PE) writing is seen at the strike price of 23,500 indicating a strong support perceived by the market participants. Currently, the NIFTY50 and SENSEX were seen trading marginally lower by 0.08% and 0.20%, respectively. However, a sharp selloff is seen in the Bank Nifty as it has slipped lower by 0.62% and below the 51,500 mark.

The NIFTY50 index is currently trading close to 23,544 level and the recovery from lower levels can be attributed to the fact that business activity in India expanded at a faster pace this month as compared to the month of May. HSBC's flash India Composite Purchasing Managers' Index, compiled by S&P Global, climbed to 60.9 in June, up from the final reading of 60.5 in May.

The buoyant performance of Nifty IT could be attributed to IT services provider Accenture projecting higher-than-expected annual revenue growth. This growth is driven by increasing AI adoption, despite slow enterprise spending and a strong dollar.

On Friday, the broader markets were buoyed with Nifty Midcap 100 and Smallcap 100 index up by 0.39% and 0.38%, respectively. With the outperformance from the broader markets, the market breadth was in favour of advances with 1,223 stocks seen advancing and 1,065 stocks seen declining.

The Dow Jones Futures was seen trading with marginal gains of 9 points at 39,584.

During the afternoon session, some of the trending stocks included Hindustan Zinc and KEI Industries