Markets manage to garner marginal gains on Thursday

In a range bound session, Indian equity benchmarks managed to garner marginal gains on Thursday ahead of the US jobless claims data and the Jackson Hole Symposium late today. The start of day was on higher note, following the Federal Reserve's policy meeting minutes which indicated a strong likelihood of a rate cut by the U.S. central bank next month. The July Fed meeting minutes showed 'vast majority' of policymakers thought move to lower borrowing costs was 'appropriate' if data continued to come in as expected. Underlying sentiment remained supported by a continued fall in oil prices. Some support came after 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. 

A positive trade persisted over the Dalal Street for the whole trading session. Domestic sentiment remained optimistic 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. However, gains were limited, as 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 flash survey data from S&P Global showed that the flash HSBC composite output index dropped slightly to 60.5 in August from 60.7 in July. However, a score above 50 indicates expansion in the sector.

On the global front, European markets were trading higher, as the euro area private sector growth strengthened midway through the third quarter on solid increase in service sector activity. The flash survey compiled by S&P Global showed that the HCOB composite output index improved to a three-month high of 51.2 in August from 50.2 in July. The reading was forecast to fall to 50.1. Asian markets settled mixed on Thursday, even after Japan's private sector growth accelerated in August as services activity posted a faster growth and the contraction in manufacturing activity slowed. The flash survey results published by S&P Global showed that the Jibun Bank flash composite output index rose to 53.0 in August from 52.5 in July. A score above 50.0 indicates expansion. The flash services Purchasing Managers' Index registered 54.0 compared to 53.7 in the prior month.

Back home, on the sectoral front, gem and jewellery sector stocks remained in focus as Gem and Jewellery Export Promotion Council (GJEPC) said the overall gem and jewellery exports witnessed a 21.93 per cent year-on-year decline in July to $ 1,665.4 million (Rs 13,922.03 crore) on account of dampening of consumer demand following global unrest. NBFCs stocks were also in watch, as ICRA in its latest report has said that the non-banking financial companies (NBFCs) shall witness headwinds related to funding availability, which is likely to impede growth vis-a-vis the robust expansion in the last two fiscals. It projects the growth of NBFC asset under management (AUM) to ease to 13-15% in FY25 from 18% in FY24. Standing at about Rs 47 trillion in March 2024, the sector AUM is set to cross Rs 50 trillion in FY25. 

Finally, the BSE Sensex jumped 147.89 points or 0.18% to 81,053.19, and the CNX Nifty was up by 41.30 points or 0.17% to 24,811.50.     

The BSE Sensex touched high and low of 81,236.45 and 80,954.02 respectively. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose by 0.67%, while Small cap index was up by 0.47%.

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 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 down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.51%, Tata Steel up by 1.45%, ICICI Bank up by 1.40%, Titan up by 1.23% and Asian Paints up by 1.07%. On the flip side, Tata Motors down by 1.52%, Mahindra & Mahindra down by 1.32%, NTPC down by 1.27%, TCS down by 1.14% and Power Grid down by 0.86% were the top losers.

Meanwhile, Union Minister of Commerce and Industry Piyush Goyal has said that the growth of e-commerce should be citizen centric. He also said that the growth of e-commerce must democratize the distribution of benefits amongst the larger section of society. Goyal said that technology is a means to empower, to innovate and means to meet consumer requirements - sometimes more efficiently. He said ‘But this growth must be in an orderly fashion, adding that in the race for market share, we must not cause disruption for the 100 million small retailers across the country.’

Underscoring the importance of protecting India's developing economy and supporting those who still need affirmative action, Goyal said ‘There’s a large section out there who still deserves our help. When it comes to jobs and opportunities for the future of India, I think all of us will have to play our part.’ Hr also expressed his concerns regarding the growing influence of e-commerce on India's traditional retail sector and its potential impact on employment. The Minister highlighted the possibility that half of India's market could become part of the e-commerce network in the next decade, a development he described as ‘a matter of concern.’

Reflecting on the broader implications of e-commerce, Goyal urged a dispassionate and data-driven analysis of its impact. Drawing comparisons with the Western countries, he noted the decline of traditional ‘mom and pop’ stores in countries like the United States and Europe due to the rise of e-commerce. He pointed out that Switzerland has a cautious approach to e-commerce. The Minister expressed his concern about the impact of e-commerce on local businesses and employment, particularly in sectors like pharmacies and mobile phone repair shops. He urged the business community and experts to carefully study and evaluate the impact of E-commerce in context of needs of the country in a detailed and scientific manner.

The CNX Nifty traded in a range of 24,784.45 and 24,867.35. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 2.62%, Tata Consumer Products 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.

European markets were trading higher; UK’s FTSE 100 increased 12.03 points or 0.15% to 8,295.46, France’s CAC rose 16.19 points or 0.22% to 7,540.91 and Germany’s DAX gained 51.3 points or 0.28% to 18,500.25.

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.