Indices end session in red, week in green

The benchmark Sensex fell over 660 points from the day’s high on Friday but managed to eke out its third straight weekly gain.

Weak US employment data and sustained gains in index heavyweight Reliance Industries (RIL) lifted benchmark indices by more than a per cent on Friday. However, a sell-off during the last hour of trade saw the indices give up all the gains and ended the session marginally lower from the previous day's close.

The Sensex closed at 55,769, with a decline of 49 points or 0.09 per cent. The Nifty, on the other hand, ended the session at 16,584.3, a decline of 43 points or 0.3 per cent. Both the indices gained over 1.5 per cent during the week thanks to a near 8 per cent jump in shares of RIL.

The US private payroll data report, released on Thursday, showed that jobs rose by 128,000 in May, much lower than expected. Analysts said if the US Labour department's more comprehensive job report shows a similar declining trend like the private payrolls data, then the Federal Reserve (Fed) might moderate the pace of hiking rates. Investors continue to worry about whether the pace of interest rate hikes and monetary tightening by the Fed will push the US economy into recession.

Meanwhile, the vice-chair of the Fed, Lael Brainard, on Thursday indicated that the central bank might extend its half-point rate rises if they don't see any deceleration in monthly inflation prints.

Brainard's statement comes just weeks after the Fed implemented its first half-point rate rise in 22 years to fight inflation. For most of the last year, the US central bank termed inflation a transitory phenomenon. "Persistent worries on rising interest rates, elevated crude oil prices, and liquidity tightening are keeping the upside in check.

Markets will likely remain in a broader range as we continue to monitor global cues, including geopolitical developments, crude oil price movement, and institutional flows. RBI'S (Reserve Bank of India’s) monetary policy meeting next week will be a key event that investors will track,' said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services.