Indian equity benchmarks traded volatile and ended lower for the second consecutive session on Thursday. Markets made a cautious start but soon gained some traction as India's economic growth shot up by 6.1 per cent in the March quarter of FY23, beating street's expectations, as the expansion in manufacturing and construction surprised on the upside, reflecting sustained strength in domestic demand amid a gloomy global outlook. Besides, Chief Economic Advisor (CEA) V Anantha Nageswaran said the momentum is expected to continue in the current fiscal year (FY24) with solid growth prospects, on the back of higher-than-expected economic growth in FY23. Indices traded in green for the most part of the session, as sentiments remained positive after India's manufacturing PMI showcased encouraging developments in May, painting a notably positive picture for the sector. The S&P Global India Manufacturing Purchasing Managers' Index rose from 57.2 in April to 58.7 in May, indicating the strongest improvement in the health of the sector since October 2020. However, markets erased all of their gains and entered into red terrain in late afternoon deals, as traders got anxious with the Reserve Bank of India's data report showing that growth of bank credit to industry decelerated to 7 per cent in April 2023 as compared with 8 per cent in corresponding month in the previous year. Some concern also came as the output of eight core industries slowed down to a six-month low of 3.5 per cent in April 2023 due to a decline in the output of crude oil, natural gas, refinery products and electricity. The core sector growth was 9.5 per cent in April 2022. Traders ignored newly elected President of Confederation of Indian Industry (CII) R Dinesh's statement that India's economy is expected to grow in the range of 6.5-6.7 per cent in the current financial year supported by strong domestic drivers and robust capex momentum of the government. Finally, the BSE Sensex fell 193.70 points or 0.31% to 62,428.54 and the CNX Nifty was down by 46.65 points or 0.25% to 18,487.75. 

The US markets ended sharply higher on Thursday after the House voted night to approve the bill raising the U.S. debt ceiling. The House voted 314 to 117 in favor of the Fiscal Responsibility Act, with the legislation attracting support from both Democrats and Republicans. The legislation now heads to the Senate, where Majority Leader Chuck Schumer, D-N.Y., said he hopes lawmakers can work quickly and bring the bill to the president's desk as soon as possible. Schumer said the Senate would remain in session until the bill is passed and warned lawmakers would be risking a default by trying to amend the legislation and send it back to the House. On the sectoral front, oil service stocks moved sharply higher over the course of the session, resulting in a 4.0 percent spike by the Philadelphia Oil Service Index. The index bounced off its lowest closing level in over seven months. On the economic data front, payroll processor ADP released a report showing private sector employment in the U.S. jumped by much more than expected in the month of May. The report said private sector employment shot up by 278,000 jobs in May after surging by a revised 291,000 jobs in April. Street had expected private sector employment to increase by 170,000 jobs compared to the spike of 296,000 jobs originally reported for the previous month. Meanwhile, the Labor Department released a report showing a slight increase in first-time claims for U.S. unemployment benefits in the week ended May 27th. The report said initial jobless claims crept up to 232,000, an increase of 2,000 from the previous week's revised level of 230,000. Street had expected jobless claims to rise to 235,000 from the 229,000 originally reported for the previous week.

Crude oil futures ended sharply higher on Thursday on weak U.S. dollar and the passage of the debt ceiling bill in the House of Representatives. Further, oil prices were also supported on hopes OPEC and its allies will announce a cut in production. However, oil prices drifted down earlier in the day after data showed a large build in inventories and on concerns about the outlook for energy demand after data showed manufacturing activity slowed in several countries. Data released by the Energy Information Administration (EIA) showed crude inventories increased by 4.5 million barrels in the week ended May 26, as against expectations for a draw of around 1.1 million barrels. Benchmark crude oil futures for July delivery rose $2.01 or 3 percent to settle at $70.10 a barrel on the New York Mercantile Exchange. Brent crude for August delivery surged $1.68 or 2.3 percent to settle at $74.28 a barrel on London's Intercontinental Exchange.

Indian rupee appreciated against the dollar on Thursday, as positive macroeconomic data strengthened investor sentiments. Traders took support from encouraging Q4 GDP data. India's economic growth measured in terms of Gross Domestic Product (GDP) surged to 6.1 per cent in the March quarter of fiscal year 2022-23 (Q4FY23). In Q4FY22, gross domestic product (GDP) growth was 4 per cent. Besides, India's manufacturing PMI showcased encouraging developments in May, painting a notably positive picture for the sector. The S&P Global India Manufacturing Purchasing Managers' Index rose from 57.2 in April to 58.7 in May, indicating the strongest improvement in the health of the sector since October 2020. On the global front, euro steadied on Thursday near a two-month low after data showed euro zone inflation eased more than expected last month, backing arguments for only cautious further rate hikes by the European Central Bank (ECB). Inflation in the 20 nations sharing the euro eased to 6.1% in May from 7.0% in April. Finally, the rupee ended at 82.42 (Provisional), stronger by 33 paise from its previous close of 82.75 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 62691.17 crore against gross selling of Rs 58853.68 crore, while in the debt segment, the gross purchase was of Rs 1201.77 crore against gross selling of Rs 1306.12 crore. Besides, in the hybrid segment, the gross buying was of Rs 59.51 crore against gross selling of Rs 69.65 crore.

The US markets ended higher on Thursday as investors eyed May jobs report. Asian markets are trading in green on Friday after the bill to raise the U.S. debt ceiling was passed in the House of Representatives, advancing it to the Senate just days ahead of the default deadline. Indian markets exhibited lackluster performance as late hour selling mainly played spoil sport and forced the indices end into the negative zone. Today, markets are likely to get positive start tracking global peers. Traders will be getting encouragement as Industry body CII said India's economy is expected to grow in the range of 6.5-6.7 per cent in the current financial year supported by strong domestic drivers and robust capex momentum of the government. Some support will come as citing a better-than-estimated global growth outlook, lower global crude oil prices and robust services exports, a foreign brokerage has revised upwards its India growth forecast by 70 bps to 6.2 per cent for the current fiscal. Some optimism will come as the finance ministry said GST collection in May rose 12 per cent to Rs 1.57 lakh crore as compared to the GST revenues in the same month last year. The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is Rs 1,57,090 crore of which Central GST is Rs 28,411 crore, State GST is Rs 35,828 crore, Integrated GST is Rs 81,363 crore (including Rs 41,772 crore collected on import of goods) and cess is Rs 11,489 crore (including Rs 1,057 crore collected on import of goods). Meanwhile, an inter-ministerial consultation is going on for formulation of a new industrial policy, which would aim at building a globally competitive business environment to increase manufacturing and export. This would be the third industrial policy after the first in 1956 and the second in 1991. However, foreign fund outflows likely to dent domestic sentiments. Provisional data from the National Stock Exchange showed that foreign institutional investors (FIIs) sold shares worth Rs 71.07 crore on June 1. Agriculture related stocks will be in focus as wheat procurement during the ongoing Rabi Marketing season (RMS) 2023-24, till 30th May 2023, progressed to reach 262 lakh metric ton (LMT) which has already surpassed the previous year's total procurement of 188 LMT by 74 LMT. There will be some reaction in NBFCs stocks as domestic rating agency Crisil said NBFC-MFIs' assets under management are expected to grow by up to 30 per cent in the current financial year. It said the year will also see an improvement in asset quality and profitability for the Non-Bank Finance Companies-Microfinance Institutions (NBFC-MFI) segment. Oil & gas industry stokcs will be in limelight as globally oil prices rose by the most in two weeks ahead of an OPEC+ meeting on Sunday.

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

Nifty Top volumes

• Coal India's coal production has increased by 9.5% to 59.9 million tonnes in May 2023 as against 54.7 million tonnes in May 2022. 
• HDFC Bank has launched two special tenure fixed deposit schemes, with an overall tenure of 35 and 55 months. 
• Tata Motors' wholly owned subsidiary -- Jaguar Land Rover is recalling more than 6,000 I-Pace electric SUVs in the US due to the risk of the high-voltage battery overheating and catching fire. 
• Bharti Airtel has witnessed a growth of 108% in the subscription of packs for customers travelling abroad from Delhi as compared to last year.