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Indian equity benchmarks ended higher on Friday as traders got support amid reports that start-ups have been the buzzword in India for the last several years. Today, markets are likely to make positive start on account of falling crude oil prices amid strong cues from global markets. Traders may get encouragement on report that during the April-July period, the central government achieved more than a third of the direct tax collection for this financial year as personal tax collection exceeded corporation tax mop-up amid tightened enforcement and compliance measures. Overall direct tax collections, net of refunds, including corporation and personal income tax, grew by 40 per cent in the first four months of FY23 to Rs 5 trillion, which is nearly 35 per cent of the target of Rs 14.2 trillion for the whole fiscal year.  Meanwhile, a private report stated that the finance ministry is proposing to soon review the exemption-free new tax regime with a view to making it more attractive for individual income taxpayers. The government aims to establish a system where there are no exemptions and the complex old tax regime with exemptions and deductions is terminated. Traders may take note on report that former RBI Governor D Subbarao said India may become a USD five trillion economy by 2028-29 only if the GDP grows at nine per cent per annum consistently for the next five years. Aviation industry stocks will be action as Civil Aviation Minister Jyotiraditya Scindia said that the dip in the air turbine fuel (ATF) price and the continuation of this trend will benefit the aviation sector. He said the fall in the ATF rates will have a good impact on airlines under pressure. There will be some buzz in FMCG stocks on report that inflationary pressure on some raw material inputs for the FMCG industry is abating but the manufacturers expect its impact on price and margins to continue in the current quarter.

The US markets ended higher on Monday amid investors look ahead to several updates from retailers this week. Asian markets are mostly trading higher on Tuesday following the broadly positive cues from global markets overnight.

Back home, Indian equity benchmarks ended on positive note after a highly volatile session on Friday led by gains in index majors NTPC, Tata Steel and Power Grid Corporation. Key indices opened marginally in red, as traders remained on sidelines ahead of IIP (Index of Industrial Production) and Consumer Price Index (CPI) inflation numbers to be released after market hours on Friday. However, key gauges soon erased losses to trade in green, as traders found some solace with a private report that India will be the fastest growing major economy this year and the next despite headwinds from rising inflation, widening trade deficit and a declining rupee. It added that the 7 per cent decline in rupee value against the US dollar this year was not worrisome, and the government and RBI are confident of managing the situation.  Some support also came as S&P Global Ratings said the Indian economy can handle some erosion of its foreign exchange reserves as its external position is very strong. Benchmarks managed to keep their head above water in afternoon deals, as largely positive trend in global equities and foreign capital inflows also supported the domestic equity markets. According to exchange data, foreign institutional investors (FIIs) were net buyers in the Indian capital market as they purchased shares worth Rs 2,298.08 crore on Thursday. Some optimism also came as State Bank of India in a report said India’s inflation trajectory going forward is expected to be benign with headline retail inflation potentially printing at less than 5 per cent in March 2023. It added that CPI (consumer price index) numbers for March 23 could be even lower than 5 per cent, if July CPI numbers are closer to 6.5-6.6 per cent, a likely possibility. Traders took note of commerce and industry ministry’s statement that India and the UK aim to conclude the free trade agreement by the end of October this year. Finally, the BSE Sensex rose 130.18 points or 0.22% to 59,462.78 and the CNX Nifty was up by 39.15 points or 0.22% to 17,698.15. 

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