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Indian markets ended higher for the third day on Friday, with the Sensex climbing over 300 points amid mixed global market trends. Today, markets are likely to make negative start amid weakness in Asian peers. There will be some cautiousness with a private report that India's headline retail inflation rate is expected to be 7 percent in June, largely unchanged from 7.04 percent in May, with a sharp pick-up in vegetable prices likely nullifying the impact of the decline in prices of other food items. Traders will be concerned as foreign investors continue to desert Indian equity markets and have pulled out over Rs 4,000 crore this month so far amid steady appreciation of the dollar and rising interest rates in the US. However, some respite may come later in the day as RBI Governor Shaktikanta Das exuded confidence that the price situation will gradually improve in the second half of the current fiscal, and the central bank would continue to take monetary measures to anchor inflation with a view to achieving strong and sustainable growth. Traders may take note of report that India must grow by at least 8-10 percent per year for the next 25 years if it wants to achieve its social and economic ambitions. Meanwhile, In a global first, the Securities and Exchange Board of India (Sebi) is planning to issue regular 'risk factor disclosures' on market trends, including surges and collapses, to help investors make right decisions by learning from the regulator's insights. There will be some buzz in banking stocks with a private report stating that with increases in lending rates, high credit growth, and lower credit costs, banks are likely to report a significant rise in net interest income (NII) and profits year-on-year (YoY) in the quarter ended June 2022 (Q1FY23). Agriculture industry related stocks will be in focus as he agriculture ministry data showed the area under coverage for paddy declined 24 per cent to 72.24 lakh hectares so far in the ongoing Kharif sowing season, while oilseeds acreage is lower by 20 per cent at 77.80 lakh hectares because of delay in the progress of monsoon rains in some parts of India. There will be some reaction sugar industry stocks as the government said India has extended by two weeks a deadline for the export of 800,000 tonnes of sugar as annual monsoon rains make it tough for many producers to move stocks from factories to ports.

The US markets ended lower on Friday as stronger-than-expected jobs data helped ease growth worries but added to expectations of another 75-bps rate hike at the upcoming Fed meeting later this month. Asian markets are trading mostly in red on Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates.

Back home, Indian equity benchmarks extended gains to the third session in a row on Friday amid gains in Capital Goods, Power, Utilities and Industrials shares. Strength across global markets after the Fed hinted at a more tempered program of hikes in COVID-era interest rates aided the sentiment on Dalal Street. Key gauges made an optimistic start and stayed in green for whole day, as sentiments got a boost with Economic Affairs Secretary Ajay Seth’s statement that the measures taken by Reserve Bank of India (RBI) will increase inflows of overseas funds and help in strengthening the rupee against the US dollar. Some support also came with a private report stating that roles in Indian research and development (R&D) increased 42 per cent in the last three years. Job postings in R&D also grew by over 40 per cent between May 2020 and 2021. Among job seekers, searches for roles in R&D increased 21 per cent in the last three years. Markets continued to trade in fine fettle in late afternoon session, taking support from private report stated that the Indian job market registered marginal year-on-year growth of 3 percent across industry segments in June. It said banking, financial services and insurance (BFSI), travel and tourism and chemical industries ramped up hiring compared to the same month last year. Traders took note of report that Finance Minister Nirmala Sitharaman has asked the Niti Aayog to prepare a report mapping all the industrial activities such as corridors, logistics parks and pharma hubs so that they can be incorporated under the PM Gati Shakti initiative of the government. However, upside remain capped amid persistent foreign fund outflows in the capital market. Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth Rs 925.22 crore. Finally, the BSE Sensex rose 303.38 points or 0.56% to 54,481.84 and the CNX Nifty was up by 87.70 points or 0.54% to 16,220.60.

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