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Indian equity markets ended marginally higher on Thursday after hitting record highs. Today, markets are likely to make optimistic start on firm global cues. Foreign fund inflows likely to aid domestic sentiments. Foreign institutional investors (FII) bought shares worth a net Rs 2,237.93 crore on July 13. Some support may also come as private report said that the India growth story remains intact and recession in certain parts of the world is unlikely to seep into the country; on the contrary this would be a golden decade for India. Traders may get some encouragement as economic Affairs Secretary Ajay Seth said that the role of India’s G20 presidency is to lead the effort to develop global consensus, and there continues to be a strong desire that all countries continue to work together to find that consensus. Meanwhile, Chief Economic Adviser V Anantha Nageswaran said turning jobseekers into job-givers is an important goal of the government and many steps have been taken in recent years to achieve this objective. He said it relieves pressure on the job market. In terms of financing, the credit guarantee scheme that was launched during Covid, and continued until this year, has done a wonderful job in ensuring that the MSME space remains vibrant. Moreover, the commerce and industry ministry is likely to seek Cabinet approval to sign and ratify the Supply Chains Agreement under the Indo-Pacific Economic Framework (IPEF), the negotiations for which were concluded in May. Besides, stock-specific action amid June quarter results will continue to dominate the Street.

Asian markets are trading higher in early deals on Friday following positive cues from global markets overnight. The US markets ended higher on Thursday as data showed the annual increase in U.S. producer inflation was the smallest in nearly three years. The data provided more evidence that inflation pressures were subsiding.

Back home, Indian equity benchmarks erased most of their initial gains but managed to end marginally higher on Thursday. Buying in market heavyweight stocks TCS, Infosys and Bajaj Finserv helped indices settle in the positive territory. Initially, upbeat global cues triggered a gap-up start in markets. Traders also took encouragement with data showing that India’s industrial production growth measured in terms of the Index of Industrial Production (IIP) rose to 5.2 per cent in May, mainly due to good performance by the manufacturing and mining sectors. Traders also took note of Union Minister of State for Petroleum and Natural Gas Rameswar Teli’s statement that India is the fastest growing among the major economies of the world and the petroleum and petrochemical sector is playing a pivotal role in this. Markets held their strong gains in late morning deals, as sentiments remained optimistic with data showing that investment in the domestic capital markets through participatory notes rose to Rs 1.04 lakh crore in May-end, the highest level in over five years, fuelled by the resilience of the Indian economy. This includes the value of P-note investments in Indian equity, debt, and hybrid securities. However, key gauges trimmed most of their gains in late hour of trade as hotter-than-expected domestic inflation kept investors cautious. India’s retail inflation reversed its four-month downward trend in June on surging food prices, though it remained within the Reserve Bank of India’s (RBI’s) upper tolerance limit. The Consumer Price Index (CPI)-based inflation rate rose to a three-month high of 4.81 per cent year-on-year (YoY) in June, as against 4.31 per cent in the previous month, because of a sharp increase in the prices of food & beverages and services. Finally, the BSE Sensex rose 164.99 points or 0.25% to 65,558.89 and the CNX Nifty was up by 29.45 points or 0.15% to 19,413.75.      

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