Indian equity benchmarks closed higher for the sixth straight session to settle at yet another fresh record closing highs on Thursday, driven by unabated foreign capital inflows and intense buying in FMCG, Banking and Healthcare stocks. After the initial dip, key indices traded volatile in the early hours as traders got anxious with S&P Global Ratings reportedly stating that India is unlikely to embark on any major new reforms till the 2024 elections, but momentum could pick up if the next government comes with a strong mandate. However, markets soon erased initial losses and turned positive in afternoon deals, as traders took support with World Bank President Ajay Banga's statement that amidst risk of a global slowdown in the early part of next year, India is expected to remain shielded from its effects due to robust domestic consumption. Traders also took a note of a private report that India's chances of missing the budget deficit target for this fiscal year is very slim at the moment despite weather hindrances, divestment revenue risks and meek corporate tax collections, thanks to support from the central bank. Markets added gains in late afternoon deals, as the Asian Development Bank (ADB) in its latest forecast has maintained the growth outlook for developing economies in Asia and the Pacific at 4.8 per cent for 2023, and noted robust domestic demand continues to support the region's recovery. According to the Asian Development Outlook (ADO) July 2023, ADB forecasted that inflation in the region is expected to fall continuously, approaching pre-pandemic levels as fuel and food prices decline. Meanwhile, highlighting the transformative potential of the Indian EV industry and its positive impact on both the economy and the environment, NITI Aayog Vice Chairman Suman Bery has emphasized the role of electric mobility in accelerating India's economic growth along low-carbon pathways and facilitating the nation's net-zero vision for 2070. Finally, the BSE Sensex rose 474.46 points or 0.71% to 67,571.90 and the CNX Nifty was up by 146.00 points or 0.74% to 19,979.15.

The US markets ended mostly in red on Thursday, with Nasdaq settling cut of over two percent.  The sharp pullback by the Nasdaq came amid a negative reaction to earnings news from companies like Netflix (NFLX) and Tesla (TSLA). Shares of Netflix plummeted by 8.4 percent after the streaming giant reported better than expected second quarter earnings but weaker than expected revenues. Electric car maker Tesla also plunged by 9.7 percent after reporting second quarter earnings and revenues that exceeded street estimates but a notable decrease in operating margins. On the other hand, the narrower Dow benefitted from a spike by shares of Johnson & Johnson (JNJ), with the healthcare giant surging by 6.1 percent. The jump by J&J came after the company reported better than expected second quarter earnings and raised its full-year guidance. On the sectoral front, semiconductor stocks turned in some of the worst performances on the day, with the Philadelphia Semiconductor Index plunging by 3.6 percent. The index continued to give back ground after ending Tuesday's trading at its best closing level in over a year. Shares of Taiwan Semiconductor (TSM) plummeted by 5.1 percent after the chipmaker reported a steep drop in second quarter profits. On the economic data front, the Labor Department report showed first-time claims for U.S. unemployment benefits unexpectedly dipped in the week ended July 15th. The report said initial jobless claims slipped to 228,000, a decrease of 9,000 from the previous week's unrevised level of 237,000. Street had expected jobless claims to inch up to 242,000.

Crude oil futures ended higher on Thursday, after losing ground the last session, finding support from recent output cuts by major producers as traders remained cautious over the outlook for energy. Oil prices rose amid fears of declining supplies from Russia. Data released by the Energy Information Administration (EIA), which showed a smaller than expected drop in U.S. crude inventories, supported oil prices. Besides, expectations the Federal Reserve is near the end of its rate-hike cycle as inflation continues to cool have been cited as supportive for crude, which has bounced higher in July. Benchmark crude oil futures for August delivery rose $0.28 or about 0.4 percent to settle at $75.63 a barrel on the New York Mercantile Exchange. Brent crude for September delivery gained $0.18 or about 0.22 percent to settle at $79.64 a barrel on London's Intercontinental Exchange.

Indian rupee appreciated against the dollar on Thursday as domestic equity benchmarks scaling all-time high levels and weakness in the American currency overseas boosted investor sentiments. Besides, steady foreign fund inflows into domestic capital markets also supported the local unit. Traders got encouragement, as the Asian Development Bank (ADB) in its latest forecast has maintained the growth outlook for developing economies in Asia and the Pacific at 4.8 per cent for 2023, and noted robust domestic demand continues to support the region's recovery. On the global front, dollar held mostly steady against the euro and the yen on Thursday, but dropped against the Australian dollar after domestic job data beat expectations, and against the yuan, which received a lift from Chinese monetary authorities. Finally, the rupee ended at 81.96 (Provisional), stronger by 12 paise from its previous close of 82.08 on Wednesday.

The FIIs as per Thursday's data were net buyers in equity segment, while net sellers in debt segment. In equity segment, the gross buying was of Rs 10103.79 crore against gross selling of Rs 7909.80 crore, while in the debt segment, the gross purchase was of Rs 257.15 crore with gross sales of Rs 433.15 crore. Besides, in the hybrid segment, the gross buying was of Rs 3.68 crore against gross selling of Rs 7.48 crore.

The US markets ended mostly in red on Thursday as investors reacted to disappointing earnings news from the likes of Netflix and Tesla and signs the labor market remains tight. Asian markets are trading mixed on Friday as investors digested Japan's higher-than-expected consumer price index figures for June. Indian markets ended at new record highs on Thursday, after struggling for direction initially, as FMCG, bank and healthcare stocks were in demand. Today, domestic indices are likely to get flat-to-positive start amid mixed global cues. Marketmen will be taking some encouragement with healthy Q1FY24 results, and persistent FPI buying. provisional data from the National Stock Exchange (NSE) showed that foreign institutional investors (FII) have bought shares worth Rs 3,370.90 crore on July 20. Some support will come with a private report that India is indeed likely to be a rising great power and its economy will have the size similar to that of the US by 2050. As per report, India should be able to sustain growth of GDP per head at 5 per cent a year, or so, up to 2050. With better policies, growth might even be a bit higher, though it could also be lower. Traders may take note of Germany's Vice Chancellor and Minister of Economic Affairs and Climate Action Robert Habeck's statement that India and Germany want to further strengthen bilateral cooperation and increase investments and collaboration among companies. Separately, Union Minister Jyotiraditya Scindia said Japan is keen to make investments of around 5 trillion Japanese yen in India across various sectors including steel. Besides, the International Monetary Fund (IMF) has said India's expected inclusion in the international bond indices could significantly increase foreign participation in the country's bond market and support portfolio inflows to finance the current account deficit (CAD) over the medium term. However, a cautious undertone may prevail as investors await Reliance Q1 results along with details on Jio's financial listing later in the day. Traders may be concerned as latest payroll data released by the Employees' Provident Fund Organisation (EPFO) showed that formal job creation slowed in May after recovering slightly at the turn of the fiscal year in the previous month. The number of new monthly subscribers under the EPF declined by close to 1 per cent to 883,176 in May from 891,974 in April. Meanwhile, Ultratech Cement, JSW Steel, HDFC Life, Hindustan Zinc, DLF, Vedanta, One97 Communications, Ashok Leyland, Federal Bank, among others will report the April-June quarter results for fiscal year 2023-24 (Q1FY24).

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

Nifty Top volumes

• Hero MotoCorp has set a target to achieve 30% of its sales on digital platforms by 2030.
• Infosys has reported 10.87% rise in its consolidated net profit at Rs 5,945 crore for the quarter ended June 30, 2023 as compared to Rs 5,362 crore for the same quarter in the previous year. 
• HCL Technologies has entered into collaboration with Schneider Electric. 
• TCS has been selected by The British Broadcasting to transform its finance and payroll functions.