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Indian markets scaled three-month closing highs on the last day of the July derivatives series on Thursday.  Today, domestic indices are likely to start trade on a positive note amid supportive global cues. Traders will be getting encouragement as the commerce ministry said the manufacturing sector attracted foreign direct investments worth $21.34 billion in 2021-22, an increase of 76 per cent year-on-year. It said the government has implemented several reforms under the FDI policy regime across sectors such as insurance, defence, telecom, financial services, pharmaceuticals, retail trading, and e-commerce. Traders may take note of commerce and industry minister Piyush Goyal’s statement that increasing cooperation in seven emerging areas like digital payments, space, agri, dairy and pharma between India and Uzbekistan will help boost economic ties. Also, foreign institutional investors (FIIs) have net bought shares worth Rs 1,637.69 crore on July 28, as per provisional data available on the NSE. Meanwhile, the markets regulator has deferred implementation of a key clause in the new framework on exchange-traded funds that came into effect this month. There will be some buzz in the power stocks as Power Minister R K Singh said power deficit came down from 2 per cent in April to 0.4 per cent in May and 0.6 per cent in June despite significant rise in demand of electricity. Telecom stocks will be in focus with report that the 5G spectrum auction will now enter the fourth day as telcos are engaged in an unexpected competition to get airwaves used for both 2G and 4G services. After 16 rounds of bidding for 5G spectrum auction, the government has fetched bids worth Rs 1,49,623 crore on the third day. There will be some reaction in sugar stocks with report that the Centre is expected to allow an additional 1.2 million tonnes (MT) of sugar exports in the 2021-22 season, which will end in September, over and above the 10 MT already fixed, due to higher-than-anticipated domestic production. Auto industry stocks will be in limelight with a private report that passenger vehicle sales are expected to be robust in July, driven by a large order book and production ramp-up, while commercial vehicle volumes may remain in an uptrend. Besides, a slew of companies are slated to report their June quarter results (Q1FY23) later in the day includes - Sun Pharma, Cipla, Indian Oil Corporation, and HDFC.

The US markets ended higher on Thursday as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared. Asian markets are trading mostly in green on Friday after a rally on Wall Street overnight.

Back home, Indian equity benchmarks continued upward momentum for the second consecutive day on Thursday with Sensex ending 1,000 points up and Nifty ending above 16,900 mark on back of positive cues from global market. Key gauges made a gap up opening and traded jubilantly throughout the day, as traders took encouragement with the Reserve Bank of India (RBI) report showed that digital payments across the country registered a growth of nearly 29 per cent in a year through March 2022. The RBI's digital payment index (RBI-DPI) stood at 349.3 in March 2022 against 270.59 in March 2021. Traders also took a note of Union Minister of Commerce and Industry Piyush Goyal’s statement that India has not imposed any country-specific ban on imports. He said India and China, are both members of the WTO, and any trade restriction imposed must be WTO compliant. He said the government has from time to time reviewed and taken WTO compliant measures to address the concerns raised by various stakeholders to have a holistic global trade strategy. Key indices extended gains in second half of trading session, after the Ministry of Commerce & Industry in its latest report showed that Singapore (27.01%) and USA (17.94%) have emerged as top 2 sourcing nations in FDI equity flows into India in FY2021-22 followed by Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%). Some optimism also came from the Ministry of Commerce & Industry stated that the overall (merchandise plus services) exports increased from $52.8 billion in June 2021 to $64.9 billion in June 2022.  The overall (merchandise plus services) imports increased from $52.9 billion in June 2021 to $82.4 billion in June 2022. Meanwhile, SEBI has extended the deadline by three months to November 1, for commencing the validation of all KYC records by KYC Registration Agencies (KRAs). Finally, the BSE Sensex rose 1041.47 points or 1.87% to 56,857.79 and the CNX Nifty was up by 287.80 points or 1.73% to 16,929.60. 

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