Indian equities posted moderate losses on Friday, December 6. Bearish sentiment held sway on the Indian stock market, although equities opened on an upbeat note. Initially, buying sentiment on Asian markets was stoked by Donald Trump’s remarks that the talks with China were “going very well”. The benchmarks later pared gains and investors in India opted to take profit ahead of the weekend given continuing uncertainty surrounding a phase one trade agreement and the prospects of the US imposing new tariffs on Chinese products on December 15. Recapping the indices, the Nifty 50 slipped 0.81% to 11,921.50, while the BSE Sensex slid 0.82% to 40,445.15. In the FX market, USD/INR firmed 0.13% to 71.321. The yield on 10-year Indian government bonds widened 0.74% to 6.657%. In the blue-chip segment, most liquid names landed in the red, with bank names Yes Bank, SBI, and IndusInd Bank giving up over 3%. The likes of Kotak Mahindra Bank, Tata Steel, and Reliance Industries logged mild gains. Yes Bank shares tanked 9.8% after Moody's Investors Service cut the bank’s long-term foreign currency issuer rating from Ba3 to B2. Vodafone Idea shares plunged 5.5% after the company’s board chairman said the company will have to shut down unless the government provides relief. From a technical standpoint, the daily chart shows that the Sensex has earlier broken out of a rising wedge to the downside, holding short-term downside potential.