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Indian markets ended at fresh all-time closing highs on Thursday, driven by unabated foreign fund inflows and buying in index major Reliance Industries. Today, domestic indies are likely to get cautious start amid negative moves across global markets. There will be some cautiousness as a study by researchers at the Reserve Bank of India said the surging prices of tomatoes can potentially disrupt India's inflation trajectory. However, foreign fund inflows likely to provide some support to markets. According to the provisional data available on the NSE, foreign institutional investors (FII) net bought shares worth net Rs 2,641.05 crore 6 July. Some support may come later in the day with report that concerns over the performance of southwest monsoon this year eased to a large extent on July 06, with rainfall deficiency declining to just 5% from over 40% a fortnight ago, and cumulative rainfall being predicted to reach normal level in the next 48 hours. Also, the Annual Economic Review for 2022-23 released by the finance ministry said that India appears poised to sustain its growth in a more durable way than before with the economy carrying the momentum from FY23 into the current fiscal year. Meanwhile, flagging the need to enhance the health of finances, Reserve Bank of India governor Shaktikanta Das has asked state governments to focus on fiscal consolidation and improve quality of expenditure. There will be some buzz in insurance industry stocks as latest data released by General Insurance Council showed non-life insurance companies reported 14.01% growth in gross written premium in June to Rs 20,112.8 crore. Coal industry stocks will be in focus as Icra said India's coal production picked up in a big way during FY22 and FY23 resulting into improved availability and supply of the dry fuel, on account of various government initiatives towards the sector.

The US markets ended lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. Asian markets are trading in red on Friday tracking overnight losses on Wall Street.

Back home, defying a weak trend in the global markets, Indian equity benchmarks notched up impressive gains and scaled fresh all-time closing highs on Thursday, driven by broad-based buying. Markets made a cautious start but soon gained traction as the provisional data available on the NSE showing that foreign institutional investors (FII) bought shares worth a net Rs 1,603.15 crore, on 5 July. Some support also came with a report released by United Nations Conference on Trade and Development (UNCTAD) showing that Foreign Direct Investment (FDI) flows into India rose by 10 per cent to $49 billion in 2022, making it the third largest host country for announced greenfield projects and the second largest for international project finance deals. Some optimism also came with G20 Sherpa Amitabh Kant’s statement that high GDP growth of 8-9 per cent could be driven by focus on manufacturing and urbanisation. He added about 5,500 census towns need to have master planning, and sustainable urbanisation is the way forward, which is a huge opportunity to drive growth in India. He said the bulging middle class holds immense power to drive sustained economic, political and social growth in India. Markets extended gains in late afternoon deals, as sentiments remained up-beat with the Finance Ministry’s statement that stellar macroeconomic management in the midst of unprecedented global challenges has put India on a quicker recovery path than has been the case in other nations. Monthly Economic Review for May and Annual Review of 2023 stated that investments in supply-side infrastructure have raised the possibility of India enjoying sustained economic growth longer than it has been able to do in several decades. Traders also took a note of Crisil Ratings’ report stating that revenue of the fast-moving consumer goods (FMCG) sector is expected to grow 7-9 per cent in current financial year (FY24), a tad slower than the 8-9 registered in the past two fiscals. It stated higher volume is expected to drive revenue growth, amid support from a gradual recovery in rural demand. Finally, the BSE Sensex rose 339.60 points or 0.52% to 65,785.64 and the CNX Nifty was up by 98.80 points or 0.51% to 19,497.30.

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