Indices clock decent gains on Thursday

Indian equity benchmarks clocked decent gains on Thursday due to buying in select heavyweights. The day started flat with a mixed response from Sensex and Nifty in the opening, as investors awaiting a slew of crucial economic data, including reports on U.S. personal income and spending in July, which includes readings on inflation said to be preferred by the US Fed. While the data is not likely to affect optimism the Fed will lower rates next month, it could impact expectations for how quickly the central bank cuts rates. For the most part of the session, indices were in green and also reached fresh record highs, as sentiments were positive, after the Department of Economic Affairs (DEA), Ministry of Finance, has amended the Securities Contracts Regulation Rules (SCRR), 1956 to ease the listing requirements for Indian companies seeking to list on international exchanges within IFSCs at par with global standards.

Volatility hit the markets in the second half, as traders were cautious, after the National Council of Applied Economic Research (NCAER) in its Monthly Economic Review for August has said that the Indian economy has remained resilient but the outlook seems softer due to moderation in a couple of high-frequency indicators, amid global geo-political uncertainties. The report said bank credit growth of scheduled commercial banks (both food and non-food) moderated in June 2024. But, volatility was for the short period, as markets managed to end higher. The street took a note of Prime Minister Narendra Modi’s statement that the government will continue to build on the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY) and initiate even more steps to build a Viksit Bharat. 

On the global front, European markets were trading higher, as Eurozone economic sentiment strengthened to a 15-month high in August as the Olympic Games boosted sentiment in France. The survey results from the European Commission revealed that the economic confidence index advanced to 96.6 in August from 96.0 in the previous month. This was the highest score since May 2023. The reading was expected to remain unchanged at July's initially estimated value of 95.8. Asian markets settled mostly down on Thursday, after Japan's consumer sentiment held steady in August after rising slightly in the previous month. The survey data from the Cabinet Office showed that the seasonally adjusted consumer confidence index stood at 36.7 in August, unchanged from July. 

Finally, the BSE Sensex rose 349.05 points or 0.43% to 82,134.61, and the CNX Nifty was up by 99.60 points or 0.40% to 25,151.95.     

The BSE Sensex touched high and low of 82,285.83 and 81,682.78 respectively. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell by 0.27%, while Small cap index was down by 0.72%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.91%, Energy up by 0.88%, FMCG up by 0.58%, Telecom up by 0.44% and Auto up by 0.32%, while Capital Goods down by 0.89%, Industrials down by 0.89%, Power down by 0.72%, Basic Materials down by 0.60% and Utilities down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 4.19%, Bajaj Finance up by 2.41%, Bajaj Finserv up by 2.41%, HCL Tech. up by 1.72% and ITC up by 1.57%. On the flip side, Mahindra & Mahindra down by 1.11%, JSW Steel down by 1.01%, Sun Pharma down by 0.85%, Kotak Mahindra Bank down by 0.74% and Tata Steel down by 0.46% were the top losers.

Meanwhile, Union Minister Ashwini Vaishnaw has said that the government approved 12 new industrial cities in 10 states on the lines of Greater Noida in Uttar Pradesh and Dholera in Gujarat to boost domestic manufacturing with an estimated investment of Rs 28,602 crore. These industrial areas will be in Khurpia in Uttarakhand, Rajpura-Patiala in Punjab, Dighi in Maharashtra, Palakkad in Kerala, Agra and Prayagraj in UP, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in AP, and Jodhpur-Pali in Rajasthan, and one in Haryana.

Vaishnaw said government has approved 12 new project proposals under the National Industrial Corridor Development Programme (NICDP). NICDP is expected to generate significant employment opportunities, with an estimated one million direct and up to three million indirect jobs being created through these planned areas.

These projects will create an investment potential of about Rs 1.52 lakh crore. The decision followed the announcement by the government in the Budget for the development of ‘plug and play’ industrial parks in or near 100 cities in partnership with states and the private sector to boost manufacturing.

The CNX Nifty traded in a range of 24,998.50 and 25,192.90. There were 29 stocks advancing against 20 stocks declining, while 1 stock remained unchanged on the index

The top gainers on Nifty were Tata Motors up by 4.38%, Bajaj Finserv up by 2.46%, BPCL up by 2.38%, Bajaj Finance up by 2.37% and Britannia up by 2.25%. On the flip side, Grasim Industries down by 1.45%, Mahindra & Mahindra down by 1.44%, JSW Steel down by 1.01%, Dr. Reddy's Lab down by 0.97% and Kotak Mahindra Bank down by 0.78% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 26.43 points or 0.32% to 8,370.28, France’s CAC rose 47.75 points or 0.63% to 7,625.42 and Germany’s DAX was up by 121.1 points or 0.64% to 18,903.39.

Asian markets settled mostly down on Thursday tracking Wall Street’s overnight fall, while technology heavyweights faced selling pressure following Nvidia's underwhelming earnings result. Meanwhile investors are cautious ahead the release of a key US inflation reading on Friday that might impact future interest rate decisions. Chinese shares dropped after UBS Investment Bank cut its 2024 GDP growth forecast for China to 4.6% from 4.9%, citing a deeper-than-expected property market downturn.