NIFTY50: 19,253 ▼ 93 (-0.4%)
SENSEX: 64,831 ▼ 255 (-0.3%)
- Benchmark indices ended lower, Adani Group stocks declines
- In all, 35 of the NIFTY50 stocks closed in the red
- Output of India’s eight core sectors grew by 8% in July
Among the NIFTY sectoral indices, Realty (+0.6%) and IT (+0.2%) were the top gainers, while PSU Bank (-1.3%) and Oil & Gas (-1.0%) were the top losers.
| Top gainers | Today's change |
| Jio Financial |
240 ▲ 8.7 (+3.7%) |
| Maruti | 10,000 ▲ 203 (+2.0%) |
| HDFC Life |
646 ▲ 9.0 (+1.4%) |
| Top losers | Today's change |
| Adani Enterprises | 2,425 ▼ 88 (-3.5%) |
| BPCL | 340 ▼ 11 (-3.3%) |
| Adani Ports |
792 ▼ 26 (-3.1%) |
What’s trending
⭐ Adani Group stocks tumble
Shares of all Adani Group companies, including Adani Enterprises, Adani Ports fell in the range of 2% to 4% on 31 August. This was after George Soros-backed Organised Crime and Corruption Reporting Project (OCCRP) released a report with several allegations against the Group. Meanwhile, Adani Group has denied these allegations.
⭐ Reliance-backed Viacom18 bags media rights
Reliance Industries subsidiary Viacom18 has secured media rights to telecast the Indian cricket team’s home matches for the next five years. The broadcasting giant paid around ₹6,000 crore for media rights, which includes television broadcasting as well as the digital platforms. As part of the deal, matches played in India will be broadcast on Sports 18 channel and will also be streamed on the Jio Cinema app.
⭐ Zydus gets USFDA approval for drug
Pharma major Zydus Lifesciences announced that it has received final approval from the United States Food and Drug Administration (USFDA) for Isotretinoin Tablets, used in the treatment of severe cystic acne. As of July 2023, the drug had annual sales of $165 million in the United States as per, IQVIA data.
⭐ Nazara Tech rises on fundraising plans
Shares of Nazara Technologies rose on 31 August after the company said it is considering a fundraise. The diversified gaming and sports media company is planning to issue equity shares on a preferential basis. In July, the company decided to raise funds through the issue of equity shares. In early August, the company announced plans to to expand its portfolio by investing up to $500,000 (around ₹4.15 crore) in Israel-based Snax Games.
In Focus
Factors that will drive the markets in September
Indian market sentiments were on weak footing in August 2023 as the NIFTY50 index declined over 2.5% this month. This comes amid rising domestic inflation, global uncertainty and profit booking after a sharp rally in July. What lies ahead for the markets in September? Here are some of the key factors that could drive market sentiments in the month ahead.
Robust Q1 GDP numbers
September will kickstart on good note as India’s Q1FY24 GDP growth stood at 7.8%, the highest in the last four quarters, surpassing market expectations of a 7.7% expansion. Robust growth in the country's service sector and increased government capital spending aided this growth.
Key economic data
Investors will now look forward to key economic data in September. The Purchasing Managers’ Index (PMI) for the manufacturing sector, which denotes factory activity in the economy, will be released tomorrow. In July 2023, manufacturing PMI declined to a 3-month low of 57.7, but managed to stay above 50 mark, indicating expansion in the manufacturing segment. PMI numbers are lead indicators that track business activity and help predict the economic health of a country.
Next up are retail and wholesale inflation numbers for August. In July 2023, the retail inflation rate surged to a 15-month high of 7.44%, well above the RBI’s target range of 2% to 6%. This was due to skyrocketing prices of vegetables, cereals and pulses. With rainfall being deficient in August, it would be interesting to see how inflation plays out in September.
Auto sales numbers
Major automakers, including Maruti Suzuki, Tata Motors and Hero MotoCorp, are expected to announce their monthly sales numbers in the next couple days. Monthly auto sales numbers hold significance as they indicate sales trends and the inventory position of major automakers. Experts expect sales volumes in August to show decent growth.
Passenger vehicles and two-wheeler retail sales could rise 4-7% driven by urban demand and a gradual recovery in the rural markets. Further, execution of pending orders and easing in supply chain issues also helped retail sales. Meanwhile, commercial vehicle sales could rise as freight demand is likely to improve after the monsoon due to the upcoming festive season.
Upcoming IPOs
While August 2023 was dull for equity markets, the IPO market saw strong traction in August with as many as six companies getting listed. Companies like Aeroflex Industries, SBFC Finance and Concord Biotech listed at a significant premium to their issue price. With more IPOs lined up in the first week of September, experts believe the momentum in the IPO markets could outpace that in the secondary markets.
Further, September is also significant as India will be hosting its first-ever G20 Summit in New Delhi. During this meet several big-ticket announcements could be made, including finalisation of the free trade agreement (FTA) with the UK and Eurozone.
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