The key equity indices tumbled and hit the day's low in mid-morning trade. The Nifty currently traded below the 18,550 mark after hitting the day's high at 18,664.70 in early trade. IT shares witnessed significant selling pressure for sixth day in a row. 

At 11:22 IST, the barometer index, the S&P BSE Sensex, was down 275.14 points or 0.44% to 62,295.54. The Nifty 50 index lost 67.35 points or 0.36% to 18,542. 

In the broader market, the S&P BSE Mid-Cap index gained 0.02% while the S&P BSE Small-Cap index shed 0.22%. 

The market breadth was strong. On the BSE, 1481 shares rose and 1805 shares fell. A total of 164 shares were unchanged. 

Investor sentiment was filled with optimism after China scaled back several anti-COVID movement curbs and testing measures this week, amid growing public ire towards the strict zero-COVID policy. The move drove up bets that the world's second-largest economy will recover sharply amid fewer COVID disruptions. 

The U.S. producer price index, due later on Friday, is expected to show that inflation faced by the manufacturing sector eased further in November. The reading is also expected to herald a similar trend in the more closely watched consumer price index, which is due to be released next week. A higher than anticipated inflation could invite more interest rate hikes by the Federal Reserve, given that the bank has signaled that its stance on monetary policy will be largely driven by the path of inflation. 

The Nifty IT index slipped 2.49% to 29,364.80. The index has slumped 5.64% in six sessions. 

HCL Technologies down 6.51%, Infosys down 2.79%, Persistent Systems down 2.3%, Tech Mahindra down 2.2% and Mphasis down 1.88% were the top losers. 

Among the other losers were LTI Mindtree down 1.62%, Coforge down 1.48%,L&T Technology Services down 1.38%, Wipro down 1.34% and Tata Consultancy Services down 1.2%. 

Stocks in Spotlight: 

Alembic Pharmaceuticals rose 0.15%. The company announced that it has received final approval from the US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Desonide cream. Desonide cream is a low potency corticosteroid indicated for the relief of inflammatory and pruritic manifestations of corticosteroid-responsive dermatoses. According to IQVIA, Desonide cream has an estimated market size of $12 million for twelve months ended 30 September 2022. 

Spandana Sphoorty Financial gained 2.64%. The company said that its board has approved the allotment of 1,000 non-convertible debentures (NCDs) on a private placement basis for an aggregate consideration of Rs 100 crore. 

GMM Pfaudler advanced 0.60%. The company through its wholly owned subsidiary Pfaudler GmbH, has entered into an agreement on 8 December 2022 to acquire Mixel France SAS and its wholly owned subsidiary Mixel Agitator Co. (collectively known as "Mixel"). A total consideration of 7 million euros will be paid to acquire 100% shareholding in Mixel and the transaction will be funded through a mix of internal accruals and debt. Mixel designs and manufactures customised mixing systems for a wide range of industrial applications.