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Indian markets posted strong gains for a second straight day to hit record highs on Wednesday driven by strong institutional inflows, positive global cues. Today, start of the session is likely to be on a positive note as investors return to trade following a mid-week Bakri Eid holiday. Foreign fund inflows continue to aid domestic sentiments. According to the provisional data available on the NSE, foreign institutional investors (FII) net bought shares worth net Rs 12,350 crore on June 28. Sentiments will get a boost with Reserve Bank Governor Shaktikanta Das’ statement that the Indian economy has made a solid recovery and is among the fastest-growing large economies despite heightened uncertainties and formidable headwinds. He said that financial stability is non-negotiable and all stakeholders in the financial system must work to preserve this at all times. Traders will be taking encouragement as S&P Global Ratings Senior Economist (Asia Pacific) Vishrut Rana said Indian economy is expected to clock an average growth rate of 6.7 per cent till 2026-27 fiscal driven by domestic consumption. Traders may take note of report that increasing economic ties between India and the US would help boost the country’s exports to America. Besides, markets regulator Sebi has cleared the proposal to reduce the listing time for shares in public issues to three days from existing six days, a move that is expected to allow issuers to receive their funds and allottees their securities in a shorter period. Meanwhile, the Ministry of Finance has extended the deadline to apply the proposed changes in Tax Collection at Source (TCS) rates from October 1. There will be some buzz in the banking stocks as the Reserve Bank of India in the latest edition of its Financial Stability Report noted that scheduled commercial banks' net non-performing assets (NPA) ratio fell to a 10-year low of 3.9 per cent in March 2023. Telecom stocks will be in focus as the latest data from Trai showed the number of mobile phone connections in India fell by 0.8 million in April this year, after an increase of 1.96 million in March, the highest in nine months. There will be some reaction in auto stocks with a private report that sales of passenger cars in India are set to cross the two-million mark in the first half of 2023 for the first time. Sugar sector stocks will be in limelight as the Union Cabinet Committee on Economic Affairs hiked the fair and remunerative price (FRP) of sugarcane by Rs 10 per quintal to Rs 315 for the 2023-24 season that will start from October. The increase in FRP last year was of Rs 15 per quintal.

The US markets ended mostly in green on Thursday ahead of inflation figures. Asian markets are trading mostly higher on Friday amid a set of strong U.S. economic data bolstered the view that the Federal Reserve will likely keep interest rates higher for longer.

Back home, extending their previous day's rally, Indian equity benchmarks ended at record closing highs on Wednesday on the back of all-round buying support. Positive cues from the global markets and a dip in Crude Oil prices boosted the sentiment. Markets made a positive start and remained in momentum throughout the session, as traders took encouragement with the Reserve Bank of India (RBI) in its latest data showing that India's current account deficit (CAD) narrowed to $1.3 billion or 0.2 per cent of GDP in the January-March quarter of FY23, mainly due to moderation in the trade deficit and a robust increase in services exports. Further, foreign fund inflows also supported domestic sentiments. According to the provisional data available on the NSE, foreign institutional investors (FII) bought shares worth a net Rs 2024.05 crore on June 27. Markets extended gains in second half of trading session, as sentiments remained up-beat with UK Minister for Investment Lord Dominic Johnson stating that an India-UK free trade agreement (FTA) is really important for both nations and it is for businesses on both sides to help drive that agenda. Johnson said he is very optimistic about an FTA even as he declined to put a timeframe to it. Traders took note of report that Taiwan has an ‘enormous appetite’ to expand ties with India and firming up the proposed free trade agreement between the two sides will be a ‘big encouragement’ for Taiwanese companies to set up manufacturing bases in India. Traders overlooked Reserve Bank of India’s data showing that net profit of the manufacturing, and the IT sector moderated in 2022-23. The net profit margin of the manufacturing sector declined to 8.7 per cent in 2022-23, against 10.6 per cent in 2021-22. Finally, the BSE Sensex rose 499.39 points or 0.79% to 63,915.42 and the CNX Nifty was up by 154.70 points or 0.82% to 18,972.10.

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