Indian equity benchmarks suffered huge losses on Friday, on the back of feeble global cues. After the initial downtick, key gauges tried to inch higher as traders took support with provisional data available on the NSE showing that foreign institutional investors (FII) net bought shares worth net Rs 2,641.05 crore on 6 July. Some support also came in with report that concerns over the performance of southwest monsoon this year eased to a large extent on July 06, with rainfall deficiency declining to just 5% from over 40% a fortnight ago, and cumulative rainfall being predicted to reach normal level in the next 48 hours. However, markets failed to hold recovery and soon slipped into red in late morning deals, as traders tuned cautious after a study by researchers at the Reserve Bank of India said the surging prices of tomatoes can potentially disrupt India's inflation trajectory.  Weak trade continued over the Dalal Street till the end of the trading session. Traders paid no heed towards reports that the rating agency Icra has estimated securitisation volumes, originated primarily by non-banking financial companies (NBFCs) and housing finance companies (HFCs), at Rs. 53,000 crore in Q1 FY2024, reflecting a strong growth of 60 per cent over the Rs. 33,000 crore securitised in Q1 FY2023. Traders took a note of private report stating that retail inflation is likely to have remained flat at 4.26 per cent in June compared to May, despite soaring vegetable prices and steady fuel prices. The food and fuel baskets constitute almost 60 per cent of the Consumer Price Index (CPI). Meanwhile, the Engineering Export Promotion Council (EEPC) India has released a strategy paper, urging the country to pursue new free trade agreements (FTAs) with Latin American and African nations to boost engineering shipments. The paper stressed on the importance of expanding market access and reducing risks associated with economic uncertainties. At present, around 40 countries account for over 87 per cent of India's engineering exports. Finally, the BSE Sensex fell 505.19 points or 0.77% to 65,280.45 and the CNX Nifty was down by 165.50 points or 0.85% to 19,331.80.

The US markets ended lower on Friday. Markets saw substantial volatility over the course of the trading session. The volatility on markets came after the Labor Department released a report showing U.S. employment increased by less than expected in the month of June. The Labor Department said non-farm payroll employment jumped by 209,000 jobs in June, while street had expected employment to shoot up by 225,000 jobs. The report also showed the surges in employment in April and May were downwardly revised to 217,000 jobs and 306,000 jobs, respectively, reflecting a combined downward revision of 110,000. Meanwhile, the Labor Department said the unemployment rate edged down to 3.6 percent in June from 3.7 percent in May, in line with street estimates. The report also showed annual wage growth remained elevated, coming in at 4.4 percent in June, unchanged from an upwardly revised reading in May. Street had expected the pace of growth to slow to 4.2 percent from the 4.3 percent originally reported for the previous month. On the sectoral front, oil services skyrocketed on the day, driving the Philadelphia Oil Service Index up by 6.4 percent to its best closing level in four months. The rally by oil service came amid a sharp increase by the price of crude oil, as crude for August delivery is jumping $1.60 to $73.40 a barrel. Considerable strength was also visible among airline stocks, which rebounded after falling sharply in the previous session. Following the 3.8 percent nosedive on Wednesday, the NYSE Arca Airline Index soared by 2.7 percent.

Crude oil futures ended higher on Friday as supply concerns and technical buying outweighed fears that further interest rate hikes could slow economic growth and reduce demand for oil. Further, oil prices were also supported by recent announcements from Saudi Arabia and Russia that they will cut crude output further. The move by the two major oil producers will result in output from OPEC+ dropping to around 5 million barrels per day, or about 5% of global oil demand. Besides, a weak dollar contributed as well to the uptick in oil prices. Benchmark crude oil futures for August delivery rose $2.06 or about 2.9 percent to settle at $73.86 a barrel on the New York Mercantile Exchange. Brent crude for September delivery surged $1.95 or 2.55 percent to settle at $78.47 a barrel on London's Intercontinental Exchange.

Rupee settled lower against dollar on Friday, weighed down by losses in domestic markets and a rise in crude oil prices. Traders were cautious as a study by researchers at the Reserve Bank of India said the surging prices of tomatoes can potentially disrupt India's inflation trajectory. Investors overlooked report stating that concerns over the performance of southwest monsoon this year eased to a large extent on July 06, with rainfall deficiency declining to just 5% from over 40% a fortnight ago, and cumulative rainfall being predicted to reach normal level in the next 48 hours. On the global front, dollar held steady against most major currencies on Friday ahead of U.S. employment figures that could confirm rates are likely to stay higher for longer, but fell sharply against the yen, which got a boost from Japanese wage data. The U.S. nonfarm payrolls report is due later in the day and is expected to show the U.S. economy created 225,000 jobs in June. Finally, the rupee ended at 82.73 (Provisional), weaker by 13 paise from its previous close of 82.60 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 12349.73 crore against gross selling of Rs 9516.94 crore, while in the debt segment, the gross purchase was of Rs 1214.34 crore against gross selling of Rs 490.79 crore. Besides, in the hybrid segment, the gross buying was of Rs 5.67 crore against gross selling of Rs 38.81 crore.

The US markets ended lower on Friday as a mixed jobs report showing slower job growth for June but persistently strong wage growth and a slight drop in the unemployment rate heightened fears that the Fed may resume rate hikes later this month. Asian markets are trading mostly in green on Monday as investors looked ahead to a key reading on U.S. inflation and the start of another corporate earnings season. Indian markets ended notably lower on Friday, with financials losing ground. Today, markets are likely to get cautious start amid mixed global cues. Markets participants will be looking ahead to the Industrial growth and retail inflation data to be out later in the week for more cues. Now, investors focus will shift towards the June quarter earnings (Q1FY24) this week, which will begin from Wednesday with IT giants such as TCS, Wipro and HCL Technologies reporting their numbers. However, as per a private report, Nifty50 companies to have cumulatively witnessed strong double-digit growth in their earnings for the quarter. Traders will be taking encouragement as the Confederation of Indian Industry-Business Confidence Index (CII-BCI) survey showed that business confidence improved in the first quarter of this fiscal on the back of strong fundamentals, driven by healthy domestic demand and moderating oil and commodity prices. The survey revealed that business confidence improved to 66.1 in the first quarter (Apr-Jun FY24) from 64 in the previous quarter. Some support will come as the Reserve Bank of India said India's foreign exchange reserves rose by $1.853 billion to $595.051 billion in the week ended on June 30. The overall reserve had dropped by $2.901 billion to $593.198 billion in the previous reporting week. Meanwhile, the GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer. Banking stocks will be in focus with report that the non-performing advances (NPAs) of banks are at multi-year lows, supported by substantial write-offs, especially for state-owned banks. The overall loan write-offs by public sector banks (PSBs) exceeded Rs 10 trillion during the FY2017-2023 period. There will be some reaction in railways stocks as the data for June released by the Ministry of Railways showed that freight volumes for the national transporter, Indian Railways, contracted year-on-year for the first time since the coronavirus outbreak. Besides, Cyient DLM will be listed on the stock exchanges on July 10. The final issue price has been fixed at Rs 265 per share.

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

Nifty Top volumes

• Tata Motors' subsidiary-- Jaguar Land Rover has reported 29% rise in retail sales in the first quarter ended June 30, 2023 at 1,01,994 units, as compared to the same period a year ago. 
• Dr Reddy's Laboratories has forayed into child nutrition space by launching CeleHealth Kidz Immuno Plus Gummies in India. 
• JSW Steel is aiming to nearly double its capacity to 50 million tonnes in the next three years. 
• Titan Company has recorded revenue growth of 20% Year-on-Year for Q1FY24 with all key consumer businesses exhibiting double digit growth in the quarter.