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Indian equity markets ended lower on Friday ahead of US Fed Chair Jerome Powell's speech at the Jackson Hole Symposium later in the day. Today, markets are likely to make positive start on firm cues from global markets. Sentiment may get some support as Commerce and Industry Minister Piyush Goyal and US Trade Representative Katherine Tai discussed ways to promote trade and investments between the two countries. Goyal said discussed key bilateral issues of mutual interest and explored ways to give further impetus to the growing India-US partnership through enhanced trade and investments. Traders may take note of report that G20 India Sherpa Amitabh Kant said a push for growth with free trade, concerted action on climate change and financing, accelerating the pace of outcomes of sustainable development goals (SDGs), digital transformation, and women-led development, are the key priorities for India’s G20 Presidency. However, there may be some cautiousness in the markets as government data said that foreign direct investment (FDI) into India declined 34 per cent to $10.94 billion during April-June 2023-24, dragged by lower inflows in computer hardware and software, telecom, auto and pharma. FDI inflows stood at $16.58 billion during April-June 2022-23. Inflows during January-March 2023 too had contracted 40.55 per cent to $9.28 billion. There may be some buzz in electric vehicles industry related stocks as private report said that the finance ministry is considering the proposal for including the electric vehicles infrastructure under the priority sector lending category. The move will promote and accelerate the penetration of EVs in the country and attract investments in the sector. Also, there may be some buzz in NBFC industry related stocks as the Reserve Bank of India (RBI) has directed non-banking finance companies (NBFCs), including housing finance companies (HFCs), to limit the increase in reliance on bank borrowing and has issued a caution regarding the risks associated with the growth of unsecured retail loans. Reliance Industries will be in focus, as the company will hold its annual general meeting (AGM) with the shareholders on Aug 28.

The Asian markets are trading higher in early deals on Monday following positive cues from US markets. The US markets ended higher on Friday as investors reacted positively to Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole Symposium.

Back home, Indian equity benchmarks traded under pressure throughout the day and lost over half a percent on Friday as Capital Goods, Realty and Power shares took a hit amid concerns over potential rate hikes and weak trend in global markets. Markets made a gap-down opening and remained in range bound till the end, as domestic sentiments remained pessimistic with the Reserve Bank of India (RBI) in its ‘minutes of the recent monetary policy committee (MPC) meeting’ stating that the headline inflation is likely to witness a spike in the near months on account of supply disruptions due to adverse weather conditions. It said there are risks from the impact of the skewed south-west monsoon so far, a possible El Nino event and upward pressures on global food prices due to geopolitical hostilities. Adding more concerns among traders, a new report by the Asian Development Bank (ADB) showed that the increased cost-of-living crisis sparked by surging inflation last year, combined with the lingering effects of the COVID-19 pandemic, is continuing to push people in Asia and the Pacific into extreme poverty. Traders overlooked Finance Secretary T V Somanathan’s statement that India will continue to clock the highest growth rate among the top five economies in the world in the foreseeable future and asked Indian diaspora to act as a catalyst and supplement government efforts in making India the biggest opportunity. Traders also paid no heed towards Commerce and Industry Minister Piyush Goyal’s statement that the ongoing negotiations between India and the UK on a free trade agreement (FTA) are progressing extremely well and it is expected to conclude at an early date.  Finally, the BSE Sensex fell 365.83 points or 0.56% to 64,886.51 and the CNX Nifty was down by 120.90 points or 0.62% to 19,265.80.