Indian equity bourses saw deep cut on Thursday, with Sensex and Nifty closing lower by losses of over a percent. Markets made a sluggish start of the day, after the government data showed that the growth of eight core infrastructure industries fell to its lowest in more than four years in June 2019. The index of eight core industries rose 0.2% in June, down from 7.8% in same month last year, mainly due to a contraction in oil-related sectors as well as in cement production. Adding more worries among traders, the Controller General of Accounts (CGA) in its latest data showed that the government's fiscal deficit or the gap between the government's expenditure and revenue touched 61.4% of the Budget Estimate (BE) in the first quarter (April-June) of fiscal year 2019-20 (FY20). Key indices remained under pressure throughout the day, as Global analytical firm CRISIL sliced its estimate of India's gross domestic product (GDP) growth by 20 basis points to 6.9 per cent for the current fiscal 2019-20 following a triangulation of downside risks: weak monsoon, slowing global growth and sluggish high-frequency data for the first quarter. The street paid no heed towards a report stating that India's manufacturing activity strengthened in the month of July, on the back of quicker upturn in factory orders. As per the survey report, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 52.5 in July from 52.1 in June. Finally, the BSE Sensex fell 462.80 points or 1.23% to 37,018.32, while the CNX Nifty was down by 138.00 points or 1.24% to 10,980.00.

Magnifying their previous session's losses, the US markets ended in red on Thursday after President Donald Trump announced plans to impose additional tariffs Chinese imports to the US, even though the trade talks between the two countries are due to resume September. Trump said the US would impose 10% tariffs on $300 billion of Chinese goods beginning September 1. The president said trade talks with Beijing are continuing after US officials returned from negotiations in China. The 10% levies will apply to $300 billion of Chinese goods coming into the US. It does not include $250 billion of goods already subject to tariffs. Trump accused China of failing to follow through on pledges to buy large quantities of US agricultural products and stop the sale of Fentanyl to the US. On the economic front, growth in US manufacturing activity unexpectedly showed a continued slowdown in the month of July, according to a report released by the Institute for Supply Management (ISM). The ISM said its purchasing managers index dipped to 51.2 in July after edging down to 51.7 in June. While a reading above 50 still indicates growth in manufacturing activity, street had expected the index to inch up to 52.0. Meanwhile, with the more closely watched monthly jobs report looming, the Labor Department released a report showing first-time claims for US unemployment benefits rebounded in the week ended July 27. The report said initial jobless claims climbed to 215,000, an increase of 8,000 from the previous week's revised level of 207,000. Dow Jones Industrial Average dropped 280.85 points or 1.05 percent to 26583.42, Nasdaq declined 64.30 points or 0.79 percent to 8111.12 and S&P 500 was down by 26.82 points or 0.90 percent to 2953.56.

Crude oil futures ended sharply lower with cut of over 7% percent on Thursday on reports of President Donald Trump's plan to implement new tariffs on Chinese goods fueled worries over a slowdown in the global economy and energy demand, pushing prices to their lowest finish since June. Trump announced that he planned to implement a 10% tariff on the remaining 300 Billion Dollars of goods and products coming from China. Besides, the US dollar had strengthened earlier to a two-year high, after the Federal Reserve on Wednesday signaled that it might not be as aggressive as traders had expected in delivering further interest rates cuts, following its first cut in more than a decade. The stronger dollar pressured commodity prices across the board. Benchmark crude oil futures for September plunged $4.63 or 7.9 percent to settle at $53.95 a barrel on the New York Mercantile Exchange. October Brent dropped $4.55 or 7 percent to settle at $60.50 a barrel on London's Intercontinental Exchange.

Indian rupee ended lower against US dollar on Thursday on account of sustained demand for dollar from banks and importers and rising crude oil prices. Sentiments remained down-beat with the Controller General of Accounts (CGA) data showing that the government's fiscal deficit touched Rs 4.32 trillion for the June quarter, which is 61.4 per cent of the budget estimate for 2019-20 fiscal. In absolute terms, the fiscal deficit, the gap between expenditure and revenue, was Rs 4.32 trillion at June-end. The domestic currency was also weighed down by dollar's strengthen against some other currencies overseas along with sharp losses in the local equities. On the global front, dollar jumped to two-year highs as the U.S. Federal Reserve rattled markets by signaling that its first rate cut in more than a decade was not the start of a lengthy easing cycle. Finally, the rupee ended at 69.06, 26 paise weaker from its previous close of 68.79 on Wednesday.

The FIIs as per Thursday's data were net sellers in equity segment, while they were net buyers in debt segment, In equity segment, the gross buying was of Rs 5886.28 crore against gross selling of Rs 7351.99 crore. , While in the debt segment, the gross purchase was of Rs 2004.75 crore with gross sales of Rs 1154.20 crore. Besides, in the hybrid segment, the gross buying was of Rs 24.58 crore against gross selling of Rs 5.32 crore.

The US markets ended lower on Thursday, erasing a big surge from earlier in the day, after President Donald Trump said the US would impose an additional 10% tariff on Chinese imports to the US. Asian markets are trading in red on Friday following overnight fall on Wall Street amid escalated trade tensions between Washington and Beijing. Indian markets witnessed bloodbath on Thursday following weak core sector data which fell to its lowest in more than four years in June 2019. Today, the markets are likely to make a gap-down opening tracking weakness in global markets amid escalating trade tensions. Traders will be concerned with the World Bank report showing that India has now taken a backseat to be the seventh largest economy globally with UK and France now ahead of it. As per the data, India grew to $2.73 trillion economy in 2018. In 2017, the country stood at the fifth spot with its size at $2.65 trillion. There will be some cautiousness as gross Goods and Services Tax (GST) collections stood at Rs 1.02 lakh crore in July, marginally up from Rs 99,939 crore in June. However, some support may come later in the day with the India Meteorological Department's statement that monsoon is expected to be normal in August and September. Quantitatively, the rainfall across the country as a whole during the two-month period is likely to be 100 per cent of the Long Period Average (LPA) with a model error of plus or minus 8 per cent. Some support may also come with S&P Global Ratings' report that India is a relatively closed economy and is less reliant on manufacturing for growth which explains why it continues to perform well. It is currently on a soft path but it will outperform in relative terms. Meanwhile, markets regulator SEBI has directed depositories to freeze securities of promoters and directors of listed companies that failed to ensure updation of the database with a distinctive number of equity shares. There will be some buzz in the banking stocks with report that Finance Minister Nirmala Sitharaman will meet the CEOs of public sector banks on Friday to review the financial performance of the lenders and discuss ways to increase credit growth to propel the economy. Besides, the Reserve Bank of India's (RBI) data showed that bank credit and deposits rose by 12.01 percent and 10.59 percent to Rs 96.57 trillion and Rs 126.491 trillion respectively for the fortnight to July 19. Auto stocks will be in focus with Crisil Research's report that the passenger vehicles (PVs) sales is expected to face further pressure in the current month due to OEMs bid to maintain normal inventory levels amid weak retail sentiments. There will be lots of important earnings announcements too, to keep the markets in action.

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

Nifty Top volumes

• Maruti Suzuki India has reported total sales of 109,264 units in July 2019, as compared 164,369 units in July 2018, registering fall of 33.5%. 
• Wipro has unveiled the Wipro-AWS Launch Pad, a state-of the-art immersive co-innovation center in collaboration with Amazon Web Services. 
• M&M has reported auto sales performance for July 2019 which stood at 40,142 vehicles, compared to 47,199 vehicles during July 2018, registering a fall of 15%. 
• Coal India has decided to procure 40 rakes at an estimated cost of Rs 700 crore. One rake comprises 59 wagons.