Markets recovered a bit in the afternoon session but failed to build on it and finished the session near the day's lows. Traders took a note of report stating that tagging a genuine exporter as 'risky' will hurt India's exports and an inter-ministerial committee comprising representatives from finance and commerce ministries is required to consider all aspects before branding them under this category. Traders overlooked a finance minister Nirmala Sitharaman’s statement that while the global economy is struggling, India is uniquely positioned to be optimistic and positive about its future growth. The minister highlighted that India is the fastest-growing economy despite disruptions due to the pandemic. Meanwhile, Reserve Bank Governor Shaktikanta Das has said the move to impose a 10 per cent incremental cash reserve ratio for a limited period will help suck out Rs 1 lakh crore of excess liquidity from the system. The move, announced along with the bi-monthly policy review, was the best option under the current circumstances and there is enough liquidity in the system for the banks to continue their lending operations. 

On the global front, European markets were trading lower as initial optimism over tame U.S. CPI data fizzled out, following hawkish comments from a Federal Reserve official. After U.S. inflation readings for July came in lower than expected, San Francisco Fed President Mary Daly said that it was premature to say if the Fed has raised rates enough to bring inflation down to the 2 percent target. Asian markets settled lower on Friday as growing concerns over China's economy as well as worsening relations between the U.S. and China overshadowed hopes for Fed rate pause.

Finally, the BSE Sensex fell 365.53 points or 0.56% to 65,322.65 and the CNX Nifty was down by 114.80 points or 0.59% to 19,428.30.        

The BSE Sensex touched high and low of 65,727.80 and 65,274.61, respectively. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.13%, while Small cap index was down by 0.31%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.15%, Industrials up by 0.13%, PSU up by 0.12%, Consumer Durables up by 0.10% and Power up by 0.02%, while Healthcare down by 1.27%, Bankex down by 0.73%, FMCG down by 0.72%, Auto down by 0.70% and Metal down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 3.24%, Power Grid Corporation up by 0.95%, Titan Company up by 0.88%, Reliance Industries up by 0.49% and Ultratech Cement up by 0.30%. On the flip side, Indusind Bank down by 2.31%, NTPC down by 2.02%, Sun Pharma down by 1.59%, Asian Paints down by 1.52% and Hindustan Unilever down by 1.39% were the top losers.

Meanwhile, Union Minister of Health and Family Welfare and Chemicals and Fertilizers Mansukh Mandaviya has said India is set to become the global hub of medical technology and devices with the market size estimated to reach $50 billion by 2050. 

Mandaviya said that the medical device sector is considered as one of the sunrise sectors in the country and the Government under the Prime Minister is taking every possible step to make India a manufacturing hub for medical devices. He added 'From a market share of 1.5 per cent, we hope to increase India's market share to 10-12 per cent share over the next 25 years.'

Further, he stated that ‘With effective implementation of the recently unveiled National Medical Devices Policy 2023, we are confident of fostering the Medical Devices Sector growth from present $11 billion to $50 billion by 2030.’ Besides, he said that ‘earlier, we looked at different segments of the health sector including Pharmaceuticals, Medical Devices in silos. Under the Modi Government, India is taking a holistic approach to health with a vision to transform the health landscape in the country by 2047.’

The CNX Nifty traded in a range of 19,557.75 and 19,412.75. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 2.93%, Power Grid Corporation up by 1.01%, Titan Company up by 0.96%, Tata steel up by 0.46% and Ultratech Cement up by 0.32%. On the flip side, Indusind Bank down by 2.44%, SBI Life Insurance down by 1.95%, UPL down by 1.80%, Tata Consumer Products down by 1.73% and Asian Paints down by 1.64% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 81.29 points or 1.07% to 7,537.31, France’s CAC fell 52.37 points or 0.7% to 7,381.25 and Germany’s DAX lost 63.48 points or 0.4% to 15,933.04.

Asian markets settled lower on Friday amid growing concerns over a resurgence in trade tensions between the world’s largest economies after the US imposed new curbs to limit tech investment in China, that would hurt global supply chains. Chinese shares dropped after shares of China's largest developer Country Garden Holdings hit an all-time low after it issued a profit warning for the six months ended June. Meanwhile, Japanese market was closed owing to Mountain Day holiday.

After making cautious start, market extended their losses tracking largely negative cues from Asian counterparts on growing tensions between the US and China. Traders were worried as private report stated that India's headline retail inflation is expected to have crashed past the upper bound of the Reserve Bank of India's (RBI) 2-6 percent tolerance band in July on its way to a nine-month high due to a surge in vegetable prices. Markets remained lower in afternoon session, as sentiments remained down beat after the Reserve Bank of India (RBI) in its ‘July 2023 round of its bi-monthly consumer confidence survey (CCS)’ stated that after persistent recovery for almost two years, consumer confidence for current period, as reflected in the current situation index (CSI), stood a shade lower than that witnessed in the previous survey round; improvement in respondents’ sentiment on income and spending was offset by somewhat higher pessimism on general economic and employment situation. Traders took note of report that Reserve Bank of India (RBI) has raised the cash reserve ratio in an incremental 10 per cent in proportion to banks’ liquidity. In last leg of trade, indices touched their lowest points, as investors sold out their riskier assets. 

On the global front, European markets were trading lower after data showed U.S. consumer prices increased moderately in July, which kept investors cautious ahead of more U.S. numbers later in the session. Asian markets ended in red as growing concerns over China's economy as well as worsening relations between the U.S. and China overshadowed hopes for Fed rate pause. Back home, the retirement fund body Employees' Provident Fund Organisation (EPFO) has invested Rs 13,017 crore in exchange traded funds (ETFs) in the April-July period of the current fiscal year (FY24).

The BSE Sensex ended at 65,322.65, down by 365.53 points or 0.56% after trading in a range of 65,274.61 and 65,727.80. There were 8 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.13%, while Small cap index was down by 0.31%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 0.15%, Industrials up by 0.13%, PSU up by 0.12%, Consumer Durables up by 0.10% and Power up by 0.02%, while Healthcare down by 1.27%, Bankex down by 0.73%, FMCG down by 0.72%, Auto down by 0.70% and Metal was down by 0.52% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech up by 3.24%, Power Grid up by 0.95%, Titan Company up by 0.88%, Reliance Industries up by 0.49% and Ultratech Cement up by 0.30%. On the flip side, Indusind Bank down by 2.18%, NTPC down by 2.02%, Asian Paints down by 1.52%, Sun Pharma down by 1.48% and Hindustan Unilever down by 1.39% were the top losers. (Provisional)

Meanwhile, with an aim to drain out excess liquidity from the banking system, the Reserve Bank of India (RBI) has raised the cash reserve ratio in an incremental 10 per cent in proportion to banks’ liquidity. This move will suck out over Rs 1 lakh crore from the system. According to latest data, at Rs 2.48 lakh crore, the surplus liquidity in the system in August was at a 14 month high - the highest since June 2022.

Reserve Bank Governor Shaktikanta Das has said the move, announced along with the bi-monthly policy review, was the best option under the current circumstances and there is enough liquidity in the system for the banks to continue their lending operations. Das said ‘We will have to go beyond Arjuna’s eyes and act quickly if the spiraling vegetable prices become more widespread and become generalized, forcing us to deploy any appropriate tool under our command to tame it and that it may not just be a rate hike, but any tool under our command will be deployed’.

The Governor further noted that ‘the job on inflation is still not done. Inflationary risks persist amidst volatile international food and energy prices, lingering geopolitical tensions and weather-related uncertainties.’ He said one of the reasons for the spike in liquidity is due to the fact that over 90 per cent of the Rs 3.6 lakh crore of the Rs 2,000 banknotes withdrawn on May 19, have come back to banks.

He assured that the public won’t face any crunch as they prepare for the long festive season nor will the system and industry face any liquidity issue to pay the advance tax (September 15) or GST (September 20). He added ‘We have done our internal assessment which showed that there will still be adequate liquidity left with the banking system’.

The CNX Nifty ended at 19,428.30, down by 114.80 points or 0.59% after trading in a range of 19,412.75 and 19,557.75. There were 10 stocks advancing against 39 stocks declining, while one stock remain unchanged on the index. (Provisional)

The top gainers on Nifty were HCL Tech up by 3.28%, Power Grid up by 1.03%, Titan Company up by 0.96%, Reliance Industries up by 0.42% and Ultratech Cement up by 0.38%. On the flip side, Indusind Bank down by 2.30%, NTPC down by 2.02%, Divi's Lab down by 1.77%, SBI Life down by 1.71% and UPL down by 1.63% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 85.36 points or 1.13% to 7,533.24, France’s CAC fell 65.27 points or 0.89% to 7,368.35 and Germany’s DAX was down by 84.27 points or 0.53% to 15,912.25. 

Asian markets settled lower on Friday amid growing concerns over a resurgence in trade tensions between the world’s largest economies after the US imposed new curbs to limit tech investment in China, that would hurt global supply chains. Chinese shares dropped after shares of China's largest developer Country Garden Holdings hit an all-time low after it issued a profit warning for the six months ended June. Meanwhile, Japanese market was closed owing to Mountain Day holiday.