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Indian markets capitulated in the last hour of trade on Thursday to break their two-session winning run, with IT, finance, and bank stocks playing spoilsport amid expiry of monthly derivative contracts. Today, start of session is likely to be optimistic mirroring strong global cues. Traders will be taking encouragement with a report that the Income-tax department has collected around Rs 28 crore in taxes after about 1 lakh returns were filed by taxpayers under the newly introduced return filing form called ITR-U that was notified this year as part of the Budget 2022-23. Some support will come as RBI data showed Bank credit growth accelerated to 14.2 per cent in the quarter ended June 2022 from 6 per cent in the same period of the previous year. Traders may take note of S&P Global Ratings' statement that India has built up buffers against cyclical difficulties and has ample foreign exchange reserves to withstand pressure on credit worthiness. S&P Sovereign & International Public Finance Ratings Director Andrew Wood said we are expecting a strong level of GDP growth of 7.3 per cent this fiscal. Meanwhile, a private report stated that the Indian software-as-a-services (SaaS) market is expected to grow multi-fold by 2025, accounting for almost 7 to 10 per cent of the global market from 2 to 4 per cent currently. There will be some buzz in telecom stocks as telecom firms will not require any approval for laying cables or installing mobile towers over private properties, according to new Right of Way Rules. Sugar industry stocks will be in focus with report that India's sugar exports are likely to decline by 28.57 at around 8 million tonne in the 2022-23 season on expected lower opening balance stock and higher diversion for ethanol. There will be some reaction in fertilizer industry stocks as India and Saudi Arabia signed a pact for an annual supply of 2.5 million tonnes of ammonia and DAP, NPK fertilisers for the next three years. Non-financail companies stocks will be in limelight after the Reserve Bank of India (RBI) said the first quarter of FY23 saw listed private non-financial companies log 41 per cent sales growth. Besides, Syrma SGS Technology shares will list on the stock exchanges today. The Rs 840 crore IPO of Syrma SGS Technology was subscribed 32.61 times with all investor categories subscribing to their portion of the issue heavily.

The US markets ended higher on Thursday lifted by strength in Nvidia and other technology-related stocks, as investors focused on the Fed's Jackson Hole conference for clues about the US central bank's policy outlook. Asian markets are trading mostly in green on Friday following a strong session overnight on Wall Street even as data points to mild US economic contraction in the second quarter of 2022.

Back home, Indian equity benchmarks erased all of their initial gains and sank into the red in the fag-end of the session on Thursday, with TECK and IT stocks playing spoilsport amid monthly derivatives expiry. Benchmarks made optimistic start and stayed in the positive territory for most part of the trade, as traders took some support with RBI Monetary Policy Committee (MPC) Member Ashima Goyal stating that eight years of systemic economic reforms under the Modi government have increased India's macroeconomic stability and its capacity to withstand any external shocks. She further said appropriate countercyclical macroeconomic policy with continuing supply-side improvements has enabled a growth recovery that is among the best in the world. Some optimism also came as S&P Global Ratings in its report said India has built up buffers against cyclical difficulties and has ample foreign exchange reserves to withstand pressure on credit worthiness. Besides, exchange data showed Foreign Institutional Investors (FIIs) bought shares worth Rs 23.19 crore on Wednesday. However, key gauges suddenly came under heavy selling pressure during the last half-hour of the session, as traders turned cautious with Crisil's report that States' revenue growth will slide to 7-9 per cent in FY23 even as handsome GST collections will help in the accretion. It said the revenue growth had galloped 25 per cent in FY22 courtesy a lower base in the pandemic-affected FY21. Some concern also came with the former chairman of the statistical commission Pronab Sen’s statement that India's banking sector is faced with the predicament of a 'massive asset-liability mismatch' that could explode anytime. Sen stated that there is a need to reassess laws governing the industry. Sen said that explosion has not yet happened as most of the banks are in the public sector. Finally, the BSE Sensex fell 310.71 points or 0.53% to 58,774.72 and the CNX Nifty was down by 82.50 points or 0.47% to 17,522.45.

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