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Indian Equity markets ended flat after swinging between gains and losses on Monday. Today, markets are likely to make cautious start amid weak global cues. Traders may be cautious as the International Monetary Fund’s First Deputy Managing Director Gita Gopinath said the world's top central banks may need longer to get inflation back down to target and a fresh bout of financial turbulence could make the process even more protracted. She stated central banks have raised interest rates at a brisk pace over the past year-and-a-half to fight off a historic surge in prices, but they have persistently underestimated inflationary pressures. Further, foreign fund outflows likely to dent domestic sentiments. According to the provisional data available on the NSE, foreign institutional investors (FII) offloaded shares worth a net Rs 409.43 crore on June 26. However, some respite may come later in the day as the Ministry of Finance has approved capital investment proposals of Rs 56,415 crore for 16 states in the current financial year under a special assistance scheme announced in the budget. Capital investment projects in diverse sectors have been approved, including health, education, irrigation, water supply, power, roads, bridges, and railways. There may be some buzz in textile industry related stocks as Union Minister Piyush Goyal said India is actively considering entering into free trade pacts and comprehensive economic partnership agreements to tap new markets, increase exports and create opportunities for the domestic textile industry.

Asian markets are trading mostly lower in early deals on Tuesday, following negative cues from US markets overnight, as investors were wary of betting on riskier assets before seeing the outcome of Russia’s aborted weekend mutiny overnight. The US markets ended lower on Monday after Russia on the weekend was rocked by a brief revolt from the Wagner mercenary force.

Back home, Indian equity benchmarks settled flat in a highly volatile trading session on Monday amid weak trends in the global markets. Selling in index heavyweights TCS, Reliance Industries and NTPC also played a spoilsport. Domestic equities made a cautious start and traded lackluster throughout the day, as traders were concerned as the Reserve Bank of India’s (RBI) paper has said inflation is slowing down personal consumption expenditure, which in turn is moderating corporate sales and holding back private investment in capacity creation. Some concern also came as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 344.81 crore on Friday. However, losses were limited as traders took some support with Commerce and Industry Minister Piyush Goyal stating that the Export Credit Guarantee Corporation (ECGC) has supported over 16,000 exporters with an aggregate value of business covered to the tune of Rs 6.68 lakh crore in 2022-23 and it is expected to increase to more than Rs 10 lakh crore this fiscal. Traders got some relief as private report said Indian economy and market will be among the top globally by 2050 and even surpass the US by 2075. Besides, traders took a note of report that S&P Global Ratings has retained India's Gross domestic product (GDP) growth forecast at 6 per cent for FY24 and said it will be the fastest growing economy among Asia Pacific nations. Finally, the BSE Sensex fell 9.37 points or 0.01% to 62,970.00 and the CNX Nifty was up by 25.70 points or 0.14% to 18,691.20.

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