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Indian markets fell 1 percent and extended the profit booking on the third straight session on Friday. Today, the start of new week is likely to be flat-to-positive tracking gains on global peers. Investors will track Manufacturing PMI for October due to be released later today. Sentiments will get a boost as OECD data showed that global foreign direct investment (FDI) flows rebounded in the first half of 2021 to reach $870 billion, exceeding pre-pandemic levels by 43 per cent and more than double that of the second half of 2020. Some support will come as the Reserve Bank of India (RBI) said that retail -- covering housing and vehicles, credit cards, etc -- showed an accelerated growth rate of 12.1 per cent in September 2021 against 8.4 per cent in September 2020. Besides, in a relief to small-size firms, the Reserve Bank of India (RBI) has relaxed rules for opening current accounts with the banking system’s exposure of less than Rs 5 crore. The RBI asked banks to take an undertaking from borrowers that they will inform lenders when the credit facilities availed reaches Rs 5 crore or more. However, there may be some cautiousness as growth of eight core industries dropped to 4.4 per cent in September from 11.5 per cent in the previous month due to flat fertilizer production, decline in crude oil output and slowdown in expansion of electricity generation. Meanwhile, government data showed India's federal fiscal deficit during April-September, the first half of the current fiscal year, stood at 5.27 trillion rupees ($70.4 billion) or 35% of the budgeted target for the whole year. Banking stocks will be in focus with report that Public sector banks will implement common staff accountability policies for loan accounts up to Rs 50 crore, excluding fraud accounts, turning into non-performing assets (NPAs) on or after April 1, 2022. Additionally, auto firms will also begin announcing their monthly sales figures for October today onwards. In the primary market, initial share sale of Policybazaar.com will open today while Nykaa’s IPO will enter last day and Fino Payment Bank’s offer will enter its second day.

The US markets ended higher on Friday as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. Asian markets are trading mostly in green on Monday as traders digested the outcome of Japan’s election and fresh all-time highs for US shares.

Back home, Indian equity benchmarks traded under pressure for the third consecutive session and lost nearly a percent on Friday, on the back of unabated selling pressure in select index heavyweights. Markets made a gap-down opening, as the Centre extended the nationwide Covid-19 containment measures till November 30 as there has been localised spread of the virus in a few states and the disease continues to be a public health challenge in the country. However, key gauges recovered most of initial losses in late morning deals, taking support from the city-based thinktank NCAER stating that most of the sectors are on their way to reach pre-pandemic levels and surpass them. The National Council for Applied Economic Research (NCAER) said the economic news has been favourable on balance, on account of better than projected fiscal outcomes, a rebound in most high-frequency indicators, and another impetus to policy reform, including a hitherto inconceivable privatisation of Air India. However, markets failed to hold recovery and fell sharply in afternoon deals, even as SBI Research’s report stating that the Reserve Bank of India (RBI) should let the rupee rally against the dollar to contain imported inflation coming in mainly from crude prices and help push exports, as the current account risks from rising oil price can be contained at 1.4 per cent of GDP. Market participants also paid no heed towards report that the Ministry of Finance has released the balance of Rs 44,000 crore to the states and union territories (UTs) as a loan to compensate for the Goods and Services Tax (GST) shortfall, taking the total amount to Rs 1.59 lakh crore in 2021-22. This release of funds as back-to-back loans is in addition to the bi-monthly GST compensation being given out of cess collection. Finally, the BSE Sensex declined 677.77 points or 1.13% to 59,306.93 and the CNX Nifty was down by 185.60 points or 1.04% to 17,671.65.

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