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Indian markets ended on a strong note for the fifth straight trading session on Thursday after overcoming the initial volatility caused by jittery global markets. Today, markets are likely to get flat-to-positive start. All eyes would be on the policy announcements, if any, at the G20 Summit being hosted by India. Traders will be taking encouragement with a private report that Inflation in India was likely to have eased in August from a 15-month high in July, led by cooling vegetable prices. Erratic monsoon rains have ruined some crops of staple food items, prompting the government to subsidise vegetable prices and ban exports of some cereals, providing temporary relief to households. Some support will come as NaBFID Chairman KV Kamath said India’s GDP will likely grow to $25 trillion size in the next 25 years and digital fintech players could contribute to about 25%-30% of the overall growth. Traders may take note of report that India and the 10-nation bloc Asean are expected to formally launch the review exercise for the free trade agreement (FTA) in November. They have agreed to fast-track negotiations for the review of the existing agreement in goods between the two regions and conclude the talks in 2025. However, foreign fund outflows may dampen sentiments in markets. according to the provisional data available on the NSE, foreign institutional investors (FII) offloaded shares worth net Rs 758.55 crore on September 7, 2023. Some cautiousness may come with a private report that the all-India cumulative rainfall stood at -11 per cent of long period average (LPA) on September 5, well below the normal (±4 per cent of LPA), and worse than -9 per cent of LPA a week back. Sugar stocks will be in focus as sugar cooperative NFCSF junked rumours of likely sugar shortage in the country due to El Nino, saying domestic availability of the sweetener is not expected to be adverse in the 2023-24 season.

The US markets ended mostly in red on Thursday due to concerns over the Federal Reserve’s interest rate policy path and potential rate hikes. Asian markets are trading lower on Friday as investors grapple with hot oil prices, and US Treasury yields holding above 4 per cent.

Back home, Indian equity benchmarks ended higher for the fifth straight day on Thursday on account of robust buying in index majors. A decline in crude oil prices in the international market also supported the domestic equities. Markets made a negative start and consolidated during the first half of the session as sentiments were down-beat as exchange data showed Foreign institutional investors (FII) offloaded shares worth net Rs 3245.86 crore, while domestic institutional investors (DII) sold shares worth net Rs 247.46 crore on September 6, 2023. However, markets erased initial losses and witnessed a sharp surge in afternoon deals, as traders found solace with Chairman, CII national committee on EXIM, Sanjay Budhia, stating that negotiating trade pacts with certain G20 countries and diversifying exports to regions like Brazil and Mexico could help India boost outbound shipments and manufacturing in the years to come. He said that tapping into opportunities in G20 countries is crucial for India’s economic growth and global influence. Markets maintained their upward rally in late afternoon session, taking support from Finance Ministry in its annual status report stating that India’s external debt declined to 18.9 per cent of GDP at the end of March 2023 from 20 per cent last year. Some support also came as government think tank Niti Aayog member Ramesh Chand’s statement that India's agro-chemical industry has the potential to grow more than the current nine per cent notwithstanding the competition from China. He also observed that many Western countries are shifting from agrochemicals to biopesticides and the Indian industry needs to pay attention to this aspect. Traders also took a note of Reserve Bank of India Governor Shaktikanta Das’ statement that the Unified Payments Interface (UPI) has played a phenomenal role in the FinTech revolution in India. He added Indian fintech industry projected to generate around $200 billion in revenue by 2030. Finally, the BSE Sensex rose 385.04 points or 0.58% to 66,265.56 and the CNX Nifty was up by 116.00 points or 0.59% to 19,727.05.

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