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Indian markets rose for a second straight session on Thursday, though overall gains remained limited as Adani Group stocks began trading lower again after a two-day recovery. Today, markets are likely to get negative start tracking weakness in global markets. Investors will be looking forward to the index of industrial production (IIP) or industrial growth data to be out later in the day. Continued foreign fund outflow likely to dent sentiments in the markets, as foreign institutional investors (FII) sold shares worth Rs 144.73 crore on February 9, as per provisional data available on the NSE. Traders will be concerned with a private report that the inflation rate, measured by the annual change in the consumer price index (CPI), is forecast to have risen to 5.9% in January from 5.72% in December. There will be some reaction in auto stocks with report that the Delhi Transport Department has so far de-registered 54,42,267 vehicles, as on January 31, including 10-year-old diesel vehicles and 15-year-old petrol/CNG vehicles. Sugar industry stocks will be in focus as trade body AISTA said India has exported 27.83 lakh tonnes of sugar till February 9 of the ongoing 2022-23 marketing year, with Bangladesh and Indonesia being the top markets. There will be some buzz in the tourism industry stocks as Union Minister for Culture and Tourism G Kishan Reddy said the footfall of foreign tourists in India has reached 75 per cent level of what it was in 2019 before the COVID-19 pandemic broke out. Traders will be eyeing the earnings from many companies including Mahindra and Mahindra, ABB India, PB Fintech, Abbott India, Alkem Laboratories, Ashoka Buildcon, Astrazeneca Pharma, BEML, BHEL, Dilip Buildcon, Delhivery, EIH, Glenmark Pharmaceuticals, JK Lakshmi Cement, KFin Technologies, Lemon Tree Hotels, Metropolis Healthcare, NALCO, Info Edge India, and Oil India for more cues. Also, Adani Group stocks would be in focus after index provider MSCI cut the free-float designations of four securities of the group and Norway's sovereign wealth fund said it has sold its remaining stake in the group companies. Meanwhile, Agrawal Float Glass India (NSE SME) IPO opens on February 10 and will be available for subscription till February 15.

The US markets ended lower on Thursday as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. Asian markets are trading mostly in red on Friday ahead of China’s inflation data.

Back home, Indian equity markets recouped their early losses to end in green on Thursday, following buying in IT, TECK and Industrials stocks amid a higher opening in European markets. Headline indices made a cautious start, as traders got anxious with exchange data showing that Foreign Institutional Investors (FIIs) were net sellers in capital markets as they offloaded shares worth Rs 736.82 crore on Wednesday. But, markets soon recovered from initial fall and traded flat, as traders took some support with B B Swain, Secretary to the Union Ministry for Micro, Small and Medium Enterprises (MSMEs) stating that the government has acknowledged MSMEs' contribution to the country's economic growth, and the Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances. However, markets witnessed some selling in afternoon deals, as traders turned cautious with private report stating that the Reserve Bank of India is likely to raise interest rates once again in April as inflation pressures persist and the Federal Reserve continues to tighten, a day after the central bank delivered what many had expected to be its last hike in the current cycle. But, markets turned higher during the last hour of trade, as some optimism came among traders with Union Minister of State for Commerce and Industry Som Prakash’s statement that the industrial growth during 2021-22 was 11.7% over the corresponding period of the last year. He also highlighted that the government has undertaken various steps to boost industrial performance. Finally, the BSE Sensex rose 142.43 points or 0.23% to 60,806.22 and the CNX Nifty was up by 21.75 points or 0.12% to 17,893.45.

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