Post Session: Quick Review

Indian equity benchmarks carried forward yesterday’s gains on Thursday and ended the range-bound session with minor gains. Volatility occurred during the day amid weekly F&O expiry. The Fed chair’s speech at the Jackson Hole conference on Friday will be eyed by investors for any hint of a rate cut. Positive flash HSBC composite output index data added some support on the street. As for broader indices, the BSE Mid cap index and Small cap index ended in green.

Markets made positive start and remained higher tracking overnight gains on Wall Street as well as continued fall in crude oil prices on demand concerns. Some support came as Commerce & Industry Minister Piyush Goyal said India and Africa should target doubling two-way trade to $200 billion in seven years and try to include more African countries in the partnership so that its full potential is reached. Besides, latest HSBC Flash India PMI (Purchasing Manager’s Index) report showing that India's business activity extended its robust growth streak in August as a stronger services industry offset a slight slowing in manufacturing expansion. It also indicated price pressures also were easing. Those findings suggest India will hold on to its title of fastest-growing major economy over coming quarters despite expectations of a slowdown in the global economy. The report showed that the Composite PMI Output Index recorded an impressive 60.5, marking the 37th consecutive month of expansion. In afternoon session, indices continued to trade higher, as sentiments were positive amid a private report stating that the government has set up an inter-ministerial group to firm up the contours of the credit guarantee scheme for micro, small and medium enterprises (MSMEs) announced in the budget. The MSME ministry will move the scheme for the expenditure finance committee's approval after consultations with stakeholders. Finally, Nifty and Sensex settled above the psychological 24,800 and 81,000 levels respectively.

On the global front, European markets were trading higher as a survey showed France's private sector expanded in August for the first time since April, driven by the upturn in services activity. The composite output index rose to 52.7 in August from 49.1 in July, according to flash survey results from S&P Global. Asian markets ended mixed as traders are a bit cautious after revised data showed US job growth was weaker than previously reported in the twelve months ended March 2024, raising some concerns about growth. Back home, Gem and Jewellery Export Promotion Council (GJEPC) in its latest data has showed that the overall gem and jewellery exports witnessed a 23.28 per cent year-on-year decline in July 2024 to $1,665.4 million on account of dampening of consumer demand following global unrest.

The BSE Sensex ended at 81,053.19, up by 147.89 points or 0.18% after trading in a range of 80,954.02 and 81,236.45. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.67%, while Small cap index up by 0.47%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.60%, Basic Materials up by 1.00%, Consumer Durables up by 0.91%, FMCG up by 0.59% and Metal was up by 0.57%, while Utilities down by 1.01%, Power down by 0.92%, Oil & Gas down by 0.31%, Energy down by 0.26% and IT was down by 0.14% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 1.60%, Tata Steel up by 1.55%, ICICI Bank up by 1.44%, Titan Company up by 1.21% and Asian Paints up by 1.08%. On the flip side, Tata Motors down by 1.70%, Mahindra & Mahindra down by 1.30%, NTPC down by 1.28%, TCS down by 1.09% and Power Grid down by 0.85% were the top losers. (Provisional)

Meanwhile, Indian private sector expanded at a slower pace in the month of August due to a softer rise in manufacturing output and weakening of new orders. The headline HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - stood at 60.5 in August, little changed from 60.7 in July and pointing to a sharp rate of expansion that was above its long-run trend level (54.6).

Further, the HSBC Flash India Manufacturing PMI - a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases - slipped from 58.1 in July to a three-month low of 57.9 in August. The latest reading was nevertheless above the historical average (54.0) and signalled a strong improvement in the health of the sector.

On the price front, charge inflation climbed to a near 11-year high at goods producers, whilst softening at service providers. At the composite level, the latest increase in selling prices was solid and above its long-run average, despite softening since July. Meanwhile, private sector companies in India forecast higher output levels in the year ahead, amid expectations that demand conditions will remain favourable.

The CNX Nifty ended at 24,811.50, up by 41.30 points or 0.17% after trading in a range of 24,784.45 and 24,867.35. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Grasim Industries up by 2.62%, Tata Consumer up by 2.40%, Bharti Airtel up by 1.56%, Tata Steel up by 1.46% and ICICI Bank up by 1.38%. On the flip side, Tata Motors down by 1.54%, Wipro down by 1.40%, NTPC down by 1.37%, Dr. Reddy's Lab down by 1.32% and Mahindra & Mahindra down by 1.32% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 14.4 points or 0.17% to 8,297.83, France’s CAC rose 23.32 points or 0.31% to 7,548.04 and Germany’s DAX was up by 46.43 points or 0.25% to 18,495.38.

Asian markets settled mixed on Thursday with caution ahead of the US Fed chairman's speech at Jackson Hole Symposium that might provide important clues on the Federal Reserve's rate cut trajectory, while the US Federal Reserve's recent meeting minutes reinforced expectations of a 25-bps rata cut during the September meeting if data continued to come in as expected. Seoul shares gained after the Bank of Korea held its key interest rate steady and took a more dovish tone. Japanese shares rose as the yen declined ahead of Bank of Japan Governor Kazuo Ueda's testimony in front of parliament on Friday. However, trade tensions are darkening China’s share market. China is opening an investigation into subsidies of dairy products imported from the European Union, the latest development in a tit-for-tat trade dispute between the two sides.