Indian equity benchmarks ended higher on Friday, boosted by all-around buying in light of broadly positive global cues. Key gauges made a positive start and stayed in green for whole day as India's economy grew at the fastest pace in four quarters -- at 7.8 per cent -- in the April-June period of FY24, aided by a supportive base along with a robust increase in investment. Sentiments remained positive with a private survey showing that India's manufacturing sector activity continued to expand in August, with the S&P Global Purchasing Managers' Index (PMI) rising to a three-month high of 58.6. The gauge of manufacturing sector activity in August is above the key level of 50, which separates expansion in activity from contraction, for the 26th month in a row. Some support also came as data showed that the output of eight core industries rose 8 per cent in July 2023 from 4.8 per cent in July 2022. This is due to a low base effect and positive growth in all the eight sectors during the month. However, growth for the month of July is slightly lower than that of 8.3% in June 2023. Markets extended gains in afternoon deals, taking support from Chief Economic Advisor (CEA) V Anantha Nageswaran's statement that the India's economy is expected to grow at 6.5 per cent in the current fiscal (FY24) notwithstanding deficient monsoon rains. Traders got support as revenue secretary Sanjay Malhotra said that Goods and Services Tax (GST) revenues for August 2023 have shown a growth of 11 per cent year on year due to increased compliance and less evasion. The collection from GST was Rs 1,43,612 crore in August 2022. Adding more optimism among traders, Moody's Investors Service raised India's growth projection for 2023 calendar year to 6.7 per cent on account of robust economic momentum. Finally, the BSE Sensex rose 555.75 points or 0.86% to 65,387.16 and the CNX Nifty was up by 181.50 points or 0.94% to 19,435.30.

The US markets ended lackluster trade mostly in green on Friday following the release of a mixed employment from the Labor Department. The closely watched report showed modestly stronger than expected job growth in the month of August, the report also showed an unexpected increase in the unemployment rate. The Labor Department said employment climbed by 187,000 jobs in August compared to street estimates for the addition of 170,000 jobs. Meanwhile, the report said the unemployment rate climbed to 3.8 percent in August from 3.5 percent in July. Street had expected the unemployment rate to remain unchanged. With the unexpected increase, the unemployment rate reached its highest level since hitting a matching rate in March 2022. The advance by the unemployment rate came as the size of the labor force surged by 736,000 persons, while the household survey measure of employment rose by 222,000 persons. The increase in the unemployment rate added to optimism about the Federal Reserve leaving interest rates unchanged later this month, but traders continued to express some uncertainty about future meetings. Meanwhile, the Institute for Supply Management released a report showing a slowdown in the pace of contraction in U.S. manufacturing activity. The ISM said its manufacturing PMI rose to 47.6 in August from 46.4 in July, although a reading below 50 still indicates a contraction. Street had expected the index to inch up to 47.0.

Magnifying previous sessions gains, crude oil futures ended significantly higher on Friday amid ongoing concerns about tight supplies, with OPEC+ expected to extend their output cuts. Russia indicated it may continue its voluntary cut on crude exports until next month, while traders expect a similar announcement from Saudi Arabia. Some support also came in as a Labor Department report showing stronger than expected job growth in August but an unexpected increase in the unemployment rate. The increase in the unemployment rate has added to optimism the Federal Reserve will leave interest rates unchanged later this month. Benchmark crude oil futures for October delivery rose $1.92 or 2.3 percent to settle at $85.55 a barrel on the New York Mercantile Exchange. Brent crude for November delivery surged $2.16 or 2.49 percent to settle at $88.99 a barrel on London's Intercontinental Exchange.

Indian rupee weakened against the US dollar on Friday as surging crude oil prices dented the investor sentiment. Traders ignored government data showing that India's economy grew at the fastest pace in four quarters -- at 7.8 per cent -- in the April-June period of FY24, aided by a supportive base along with a robust increase in investment. Besides, India's manufacturing sector activity continued to expand in August, with the S&P Global Purchasing Managers' Index (PMI) rising to a three-month high of 58.6. On the global front, British pound held steady on Friday as data showed that previous interest rate rises are beginning to weigh on housing and manufacturing, but official figures showed the economy fared better than previously thought through the COVID-19 pandemic. Finally, the rupee ended at 82.71 (Provisional), weaker by 1 paisa from its previous close of 82.70 on Thursday.

The FIIs as per Friday's data were net buyers in both equity and debt segments. In equity segment, the gross buying was of Rs 47524.54 crore against gross selling of Rs 46265.98 crore, while in the debt segment, the gross purchase was of Rs 346.49 crore with gross sales of Rs 176.45 crore. Besides, in the hybrid segment, the gross buying was of Rs 109.01 crore against gross selling of Rs 101.49 crore.

The US markets ended mostly higher on Friday as traders weighed the latest US jobs report, which showed that unemployment ticked higher to 3.8 per cent in August, reaching its highest level in more than a year. Asian markets are trading in green on Monday as investors look to key data from Australia (interest rate decision) and China (trade data) later in the week. Indian markets rallied and ended with decent gains on Friday with positive global cues along with upbeat macroeconomic data like Q1 GDP, core sector output and manufacturing PMI data. Today, markets likely to get positive start on firm global cues. Traders will be taking encouragement as Reserve Bank governor Shaktikanta Das said the central bank expects retail inflation to start declining from this month. He was referring to the central government's steps to check prices of vegetables like tomatoes, restrictions on export of non-basmati rice and reduction in prices of household LPG cylinders. Some support will come as Goods and services tax (GST) collection in August grew 11 per cent to Rs 1.59 lakh crore annually on account of increased compliance and anti-evasion measures. In August 2022, collection was Rs 1.43 lakh crore. Traders may take note of Economic Affairs Secretary Ajay Seth's statement that the government is confident of meeting the fiscal deficit target of 5.9 per cent of gross domestic product (GDP) and the nominal GDP target of 10.5 per cent despite pressure in the initial months of FY24. Besides, data with the Securities and Exchange Board of India (SEBI) showed that investment in the Indian capital markets through participatory notes rose to close to a six-year high at Rs 1.23 lakh crore in July-end, making it the fifth consecutive monthly increase, on the back of stable macroeconomic fundamentals. The amount has reached the highest level since December 2017 -- when investment through the route stood at Rs 1.25 lakh crore. However, some cautiousness may come as latest data by the Reserve Bank of India (RBI) showed India's foreign exchange reserves are down by $30 million at $594.85 billion for the week ending August 25. There will be some reaction in oil & gas industry stocks as the Centre, on September 1, cut the special additional excise duty (SAED) on crude petroleum to Rs 6,700 per tonne, effective September 2. Besides, the duty on petroleum exports will continue at nil.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• HCL Technologies has completed acquisition of 100% stake in ASAP Group, an automotive engineering services provider. 
• Bajaj Auto has reported fall of 15% in total sales to 3,41,648 units in August 2023 as against 4,01,595 units in the same month last year. 
• Coal India's coal production has increased by 13.2% to 52.3 million tonnes in August 2023 as against 46.2 million tonin August 2022. 
• Tata Motors has reported marginal fall in its total sales to 78,010 units in August 2023 as compared to 78,843 units in August 2022.