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Indian markets ended lower on Friday amid selling seen in the information technology, banking and oil & gas names. Today, domestic indices are likely to start session on a positive note amid moves across global markets. Some support will come with report that foreign portfolio investors (FPIs) continue with their buying spree in July with a net infusion of Rs 45,365 crore in Indian equity markets on stable macroeconomic fundamentals and steady earnings growth. Traders will be taking encouragement with Finance minister Nirmala Sitharaman’s statement that the government is focusing on four I’s - infrastructure, investment, innovation and inclusivity to put in place an enabling ecosystem that will catapult India into the league of developed nations by 2047. Some optimism will come with a private report that the country’s per capita income is likely to grow by close to 70 per cent to $4,000 by fiscal 2030 from $2,450 in fiscal 2023, helping it become a middle-income economy with $6-trillion GDP, more than half of which will be coming in from household consumption. Traders may take note of Commerce and Industry Minister Piyush Goyal’s statement that he is hopeful of India finalising certain free trade agreements (FTAs) in the next few months, which would help promote exports. However, there may be some cautiousness as Reserve Bank of India's data showed India's foreign exchange reserves saw a dip of $1.9 billion, dragging the reserves to $607.03 for the week ending on July 21. Previously, forex reserves had risen by $12.74 billion, the biggest jump in four months for the week ending on July 14. Tea industry stocks will be in focus as Tea Board provisional data showed that tea production during the month of June this year has dropped to 137.85 million kilogrammes as compared to 143.12 million kilogrammes in the same month of 2022. There will be some reaction in semiconductor industry’s stocks as Rajeev Chandrasekhar, minister of state for electronics and IT said that the government will expand the design-linked incentive (DLI) scheme for semiconductor companies to include larger companies - both foreign and Indian, as suggested by the industry stakeholders. Besides, the April-June quarter (Q1FY24) results will hog limelight. On July 31, companies like Maruti Suzuki, Adani Green Energy, Oberoi Realty, among others will report Q1FY24 scorecard.

The US markets ended higher on Friday after a slew of Big Tech earnings, economic data and central bank announcements boosted investor confidence in a soft landing for the U.S. economy. Asian markets are trading in green on Monday following a higher close on Wall Street.

Back home, Indian equity benchmarks trimmed most of their initial losses but ended marginally lower on Friday, dragged by TECK, IT and Banking stocks.  After making a cautious start, key indices drifted lower during the first half as the provisional data available on the NSE showed that foreign institutional investors (FII) sold shares worth net Rs 3,979.44 crore on July 27. Sentiments remained down-beat amid a private report stating that the changing inflation dynamics mean that the RBI (Reserve Bank of India) will likely raise its 2023-24 inflation forecast at the August 10 policy meeting, where it expects a hawkish hold. Selling further crept in as another reports stated that vegetable prices in India are set to stay higher for longer, as erratic monsoon rains delayed planting and damaged ripening crops. Vegetables prices, which have a 6% weighting in the overall consumer price index (CPI), hit a seven-month high in June, rising 12% month-on-month. However, markets witnessed a sharp recovery towards the end which helped to close off the intraday lows, as traders found some solace with Union minister Rajeev Chandrasekhar’s statement that India is on track to becoming a key player in the global semiconductor supply chain in the next decade with $10 billion (about Rs 81,993 crore) of incentives and assistance provided to encourage local chip manufacturing. Some support also came with private report stating that India is likely to grow 6-6.3 per cent in the current fiscal year ending March 31, 2024. It also forecasted growth surpassing 7 per cent over the next two years if global uncertainties recede. Traders also took a note of Commerce and industry minister Piyush Goyal’s statement that India has asked Japan and South Korea to renegotiate the comprehensive economic partnership agreement (CEPA) to make the trade more balanced and equitable. Finally, the BSE Sensex fell 106.62 points or 0.16% to 66,160.20 and the CNX Nifty was down by 13.85 points or 0.07% to 19,646.05.

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