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Indian markets rallied and ended with decent gains on Friday with positive global cues along with upbeat macroeconomic data like Q1 GDP, core sector output and manufacturing PMI data. Today, markets likely to get positive start on firm global cues. Traders will be taking encouragement as Reserve Bank governor Shaktikanta Das said the central bank expects retail inflation to start declining from this month. He was referring to the central government's steps to check prices of vegetables like tomatoes, restrictions on export of non-basmati rice and reduction in prices of household LPG cylinders. Some support will come as Goods and services tax (GST) collection in August grew 11 per cent to Rs 1.59 lakh crore annually on account of increased compliance and anti-evasion measures. In August 2022, collection was Rs 1.43 lakh crore. Traders may take note of Economic Affairs Secretary Ajay Seth’s statement that the government is confident of meeting the fiscal deficit target of 5.9 per cent of gross domestic product (GDP) and the nominal GDP target of 10.5 per cent despite pressure in the initial months of FY24. Besides, data with the Securities and Exchange Board of India (SEBI) showed that investment in the Indian capital markets through participatory notes rose to close to a six-year high at Rs 1.23 lakh crore in July-end, making it the fifth consecutive monthly increase, on the back of stable macroeconomic fundamentals. The amount has reached the highest level since December 2017 -- when investment through the route stood at Rs 1.25 lakh crore. However, some cautiousness may come as latest data by the Reserve Bank of India (RBI) showed India's foreign exchange reserves are down by $30 million at $594.85 billion for the week ending August 25. There will be some reaction in oil & gas industry stocks as the Centre, on September 1, cut the special additional excise duty (SAED) on crude petroleum to Rs 6,700 per tonne, effective September 2. Besides, the duty on petroleum exports will continue at nil.

The US markets ended mostly higher on Friday as traders weighed the latest US jobs report, which showed that unemployment ticked higher to 3.8 per cent in August, reaching its highest level in more than a year. Asian markets are trading in green on Monday as investors look to key data from Australia (interest rate decision) and China (trade data) later in the week.

Back home, Indian equity benchmarks ended higher on Friday, boosted by all-around buying in light of broadly positive global cues. Key gauges made a positive start and stayed in green for whole day as India’s economy grew at the fastest pace in four quarters -- at 7.8 per cent -- in the April-June period of FY24, aided by a supportive base along with a robust increase in investment. Sentiments remained positive with a private survey showing that India's manufacturing sector activity continued to expand in August, with the S&P Global Purchasing Managers' Index (PMI) rising to a three-month high of 58.6. The gauge of manufacturing sector activity in August is above the key level of 50, which separates expansion in activity from contraction, for the 26th month in a row. Some support also came as data showed that the output of eight core industries rose 8 per cent in July 2023 from 4.8 per cent in July 2022. This is due to a low base effect and positive growth in all the eight sectors during the month. However, growth for the month of July is slightly lower than that of 8.3% in June 2023. Markets extended gains in afternoon deals, taking support from Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that the India’s economy is expected to grow at 6.5 per cent in the current fiscal (FY24) notwithstanding deficient monsoon rains. Traders got support as revenue secretary Sanjay Malhotra said that Goods and Services Tax (GST) revenues for August 2023 have shown a growth of 11 per cent year on year due to increased compliance and less evasion. The collection from GST was Rs 1,43,612 crore in August 2022. Adding more optimism among traders, Moody's Investors Service raised India's growth projection for 2023 calendar year to 6.7 per cent on account of robust economic momentum. Finally, the BSE Sensex rose 555.75 points or 0.86% to 65,387.16 and the CNX Nifty was up by 181.50 points or 0.94% to 19,435.30.