The key equity benchmarks traded with deep cuts in afternoon trade. The Nifty traded a tad below the 18,500 level after hitting the day's high of 18,664.70 in early trade. FMCG, pharma and healthcare stocks edged higher while IT, realty and PSU bank shares witnessed a bit of a selling pressure. 

At 13:28 IST, the barometer index, the S&P BSE Sensex, was down 441.26 points or 0.71% to 62,129.42. The Nifty 50 index lost 116.10 points or 0.62% to 18,493.25. 

In the broader market, the S&P BSE Mid-Cap index shed 0.54% while the S&P BSE Small-Cap index fell 0.87%. 

The market breadth was negative. On the BSE, 1,170 shares rose and 2,258 shares fell. A total of 141 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. 

Nestle India up 1.50%, Hindustan Unilever up 0.91%, IndusInd Bank up 0.89%, Titan Company up 0.88% and Dr. Reddy's Laboratories up 0.80% were top Nifty gainers. 

HCL Technologies down 6.90%, Tech Mahindra down 3.30%, Infosys down 2.88%, Wipro (down 2.23%) and UPL down 1.85% were major Nifty losers. 

Vedanta declined 1.20%. The mining company said that its board has approved issuing upto 8,000 unsecured, rated, listed, redeemable, non-convertible debentures having a face value of Rs 10 lakh each aggregating up to Rs 800 crore (base issue size of Rs 500 crore and green shoe option of up to an additional Rs 300 crore). 

Bajaj Consumer Care gained 2.05% after the company announced that its board approved share buyback upto Rs 80.89 crore at a price not exceeding Rs 240 per share through open market route. 

Larsen & Toubro (L&T) shed 0.31%. The EPC major said that its wholly owned subsidiary, Larsen & Toubro International FZE (LTIFZE) has entered into a share purchase agreement to purchase stake in OPRO.AI INC., a Delaware Corporation.