As per provisional closing data, the S&P BSE Sensex, was down 542.10 points or 0.82% to 65,240.68. The Nifty 50 index lost 144.90 points or 0.74% to 19,381.65.

The broader market outperformed the Indian indices. The S&P BSE Mid-Cap index advanced 0.14% while the S&P BSE Small-Cap index gained 0.23%.

The market breadth was positive. On the BSE, 1,799 shares rose and 1,763 shares fell. A total of 153 shares were unchanged.

Economy:

According to statistics issued by S&P Global on August 3, India's services activity rose significantly to 62.3 in July from a Purchasing Managers' Index (PMI) of 58.5 in June. According to PMI data issued on Thursday, India's dominant services sector had its strongest rise since June 2010 as overall total sales surged.

According to an S&P Global survey, demand strength and new business wins were accountable for an upsurge in PMI. Although the manufacturing sector PMI for India fell to 57.7 in July as against 57.8 in June, the overall S&P Global India Composite PMI Output Index reached a 13-year high of 61.9.

India's overall unemployment rate fell to 7.95% in July from 8.45% in June as rural areas saw increased demand for agriculture labour with the onset of monsoon rains.

The Central Government has mobilised gross borrowing amount of Rs 5.77 lakh crore, more than 37% of its FY24 target, in the first four months of this fiscal.

The industry body ISMA has reportedly pegged the country's sugar production at 316.80 lakh tonnes (3.41% lower) in the new season that will begin from October 2023, due to more diversion of cane for ethanol production.

IPO Update:

The initial public offer (IPO) of SBFC Finance received bids for 21.21 crore shares as against 13.35 crore shares on offer, according to stock exchange data at 16:24 IST on Thursday (3 August 2023). The issue was subscribed 1.59 times.

The issue opened for bidding on Thursday (03 August 2023) and it will close on Monday (07 August 2023). The price band of the IPO is fixed at Rs 54-57 per share. An investor can bid for a minimum of 260 equity shares and in multiples thereof.

The IPO comprises of fresh issue of equity shares worth up to Rs 600 crore and an offer for sale (OFS) aggregating up to Rs 425 crore by existing shareholders.

Stocks in Spotlight:

Ambuja Cements (ACL) rose 2.99% while that of Sanghvi Industries(SIL) were locked in an upper circuit of 5%. The cement major announced the acquisition of SIL at an enterprise value of Rs 5,000 crore, to strengthen its market presence and cement capacity. ACL will acquire 14,65,78,491 equity shares or 56.74% share capital of SIL from its existing promoter group. The company said that the investment is in line with the company's strategy to increase its footprint in the cement manufacturing market.

Vedanta slumped 6.72%. Twin Star, a company promoted by Anil Agarwal, is planning to sell off 4.3% stake through block deal in Vedanta to raise up to $501 million (Rs 4,136 crore) for debt repayment.

JSW Steel lost 0.24%. The company has entered into a joint venture agreement with JFE Steel Corporation (JFE) for the purposes of establishing a joint venture company in India (JVC) for the manufacture and sale of CRGO using industry leading machinery, technical know-how and JFE Steel's energy efficient production technology developed through extensive R&D.

InterGlobe Aviation (Indigo) fell 4.80%. Indigo reported a consolidated net profit of Rs 3,090.60 crore in Q1 FY24 as against a net loss of Rs 1,064.26 crore in Q1 FY23. Revenue from operations jumped 29.78% to Rs 16,683.05 crore in the quarter ended 30 June 2023 from Rs 12,855.29 crore recorded in Q1 FY23.

Hindustan Petroleum Corporation (HPCL) fell 2.21%. The state-owned oil retailer reported a standalone net profit of Rs 6,203.90 crore in Q1 FY24 as against a net loss of Rs 10,196.94 crore recorded in Q1 FY23. Net sales (excluding excise duty) stood at Rs 111,567.43 crore in Q1 FY24, down 2.2% from Rs 114,079.76 crore recorded in the same period a year ago.

Varun Beverages rose 1.47% after the beverage maker's consolidated net profit surged 25.36% to Rs 1,005.42 crore on 13.25% rise in revenue from operations (net of excise/GST) to Rs 5,611.40 crore in Q2 CY23 over Q2 CY22.

Paradeep Phosphates slipped 3.47% after the fertilizer maker reported a consolidated net loss of Rs 119.94 crore in Q1 FY24 as against a net profit of Rs 62.77 crore recorded in Q1FY23. Revenue from operations jumped 25.5% year on year (YoY) to Rs 3,054.33 crore in the quarter ended 30 June 2023.

Mankind Pharma hit upper circuit of 10%. The company reported 66% surge in consolidated net profit to Rs 494 crore in Q1 FY24 as against a net profit of Rs 298 crore in Q1 FY23. Revenue from operations jumped 18% to Rs 2579 crore in the quarter ended 30 June 2023 from Rs 2180 crore recorded in Q1 FY23.

Metropolis Healthcare added 3.25%. The company reported consolidated net profit of Rs 29 crore in Q1 FY24 as against a net profit of Rs 34 crore in Q1 FY23. Revenue from operations fell to Rs 277 crore in the quarter ended 30 June 2023 from Rs 280 crore recorded in Q1 FY23.

Gujarat Gas slipped 3.75%. The gas distribution company's standalone net profit tumbled 43.6% to Rs 215.09 crore on 26.9% fall in net sales to Rs 3,781.51 crore in Q1 FY24 over Q1 FY23.

Global markets:

European and Asian stocks slipped on Thursday, adding to steep losses in the previous session following a U.S. credit rating downgrade from Fitch and better-than-expected ADP employment data.

U.S. stocks suffered a wave of selling on Wednesday after a surprise downgrade of the country's debt rating by Fitch, citing fiscal deterioration and repeated debt ceiling standoffs. Also, data showed U.S. private sector employment jumped by much more than expected in July, reviving Fed rate hike bets.

U.S. private sector employment increased by 324000 jobs in July, and annual pay was up 6.2% year-over-year, adding to pressure on the Federal Reserve to maintain restrictive policy.

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