Indices erase intraday gains to end lower; Nifty settles below 19,400-mark

Indian equity benchmarks failed to hold the strong momentum witnessed in early trade and finally ended the trading session in red on Thursday amid selling in Healthcare, Energy and Financial Services stocks. Markets made a gap-up opening and extended the gains in the initial hours of trading, on positive global cues. Sentiments got boost with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that vegetable rates may ease from September, led by tomato prices, which have started showing signs of correction on the back of increased supply. Some support also came with commerce minister Piyush Goyal’s statement that India is hopeful that trade and investment ministers from the world’s 20 biggest economies set to meet in Jaipur will be able to strike a consensus on key areas of trade and investment, although differences persist over the Ukraine war. Some optimism also came as the provisional data available on the NSE showed that foreign institutional investors (FII) bought shares worth net Rs 614.32 crore on August 23.

However, key gauges reversed all of their intraday gains in late afternoon deals and ended lower amid weekly expiry of the derivative contracts as selling pressure in heavyweights weighed on investor sentiments. Traders also awaited US Federal Reserve chair Jerome Powell's speech, due on Friday, for cues on inflation. Traders paid no heed towards Prime Minister Narendra Modi’s statement that India is seen as a combination of openness, opportunities and options as the world sees optimism and confidence in the Indian economy. The prime minister said that during the last nine years, India has become the fifth largest global economy and it has increased its competitiveness and enhanced transparency. Traders also overlooked Union Minister of State for External Affairs Rajkumar Ranjan Singh’s statement that Indian embassies and consulates are well-placed to help the country's businesses explore new markets for exports. He said India's growth and prosperity are intrinsically linked to its ability to tap into global markets and focusing on the incredible products and services that it has to offer.

On the global front, Asian markets settled mostly higher on Thursday, while European markets were trading higher as bond yields retreated from recent highs on the back of weak August PMI data signaling weaker economic activity in Asia, Europe and the U.S. Blockbuster earnings and bullish outlook from Nvidia also offered some support as investors looked ahead to the Federal Reserve's upcoming Jackson Hole symposium.

Finally, the BSE Sensex fell 180.96 points or 0.28% to 65,252.34 and the CNX Nifty was down by 57.30 points or 0.29% to 19,386.70.        

The BSE Sensex touched high and low of 65,913.77 and 65,181.94, respectively. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.11%, while Small cap index was up by 0.21%.

The top gaining sectoral indices on the BSE were IT up by 0.63%, TECK up by 0.48%, Telecom up by 0.44%, FMCG up by 0.28% and Realty up by 0.21%, while Healthcare down by 0.72%, Energy down by 0.69%, Financial Services down by 4.49%, Metal down by 0.45% and Consumer Durables down by 0.39% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.68%, Infosys up by 1.19%, Ultratech Cement up by 0.65%, Nestle up by 0.39% and Axis Bank up by 0.29%. On the flip side, JIO Financial Services down by 4.99%, Reliance Industries down by 1.76%, Power Grid Corporation down by 1.32%, JSW Steel down by 1.19% and Larsen & Toubro down by 1.10% were the top losers.

Meanwhile, Union Minister of State for External Affairs Rajkumar Ranjan Singh has said that Indian embassies and consulates are well-placed to help the country's businesses explore new markets for exports. He said India's growth and prosperity are intrinsically linked to its ability to tap into global markets and focusing on the incredible products and services that it has to offer.

He stated that India has representation in almost all the countries of the world. He said ‘Our embassies and consulates are equipped with commercial representatives.' He added ‘Trust, quality and assured supply are the key components for the long-term success of any export business.’

Besides, stating that India is looking to increase its exports to $2 trillion by 2030, he said 'Our export target of 2030 will be equivalent to Brazil's or Canada's total GDP today.' He asserted that India will increase its export earnings by more than 2.5 times by the year 2030 compared to what it is at present. Moreover, he said export will have to be a dominant player in India's growth story.

The CNX Nifty traded in a range of 19,584.45 and 19,369.00. There were 16 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.93%, Asian Paints up by 1.78%, Indusind Bank up by 1.26%, Infosys up by 1.14% and Britannia Industries up by 0.94%. On the flip side, JIO Financial Services down by 4.99%, Reliance Industries down by 1.84%, Divi's Laboratories down by 1.52%, Power Grid Corporation down by 1.32% and ONGC down by 1.37% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 27.43 points or 0.37% to 7,347.96, France’s CAC rose 27.56 points or 0.38% to 7,274.18 and Germany’s DAX gained 33.63 points or 0.21% to 15,762.04.

Asian markets settled mostly higher on Thursday, despite weak August PMIs from major economies. Wall Street gains overnight ahead to the Federal Reserve's upcoming Jackson Hole symposium and blockbuster quarterly earnings from major chipmaker Nvidia Corp added support to market sentiments. Seoul shares gained after the Bank of Korea held interest rates steady as expected for a fourth straight month. Moreover, Japanese and Hong Kong shares climbed followed by gains in the technology sector.