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Indian markets posted fresh intraday and closing highs on Wednesday despite the market turning a bit volatile after a firm start. Today, markets are likely to get cautious start amid mixed global cues. There will be some volatility amid weekly F&O expiry later in the day. Investors may also look to take some profits after successive days of gains. There will be some cautiousness as S&P Global Ratings reportedly said India is unlikely to embark on any major new reforms till the 2024 elections, but momentum could pick up if the next government comes with a strong mandate. However, some respite may come later in the day amid foreign fund inflows. According to the provisional data available on the NSE, Foreign institutional investors (FII) net purchased shares worth Rs 1,165.47 crore on July 19. Some support will come as World Bank President Ajay Banga said amidst risk of a global slowdown in the early part of next year, India is expected to remain shielded from its effects due to robust domestic consumption. Traders may take note of a private report that India’s chances of missing the budget deficit target for this fiscal year is very slim at the moment despite weather hindrances, divestment revenue risks and meek corporate tax collections, thanks to support from the central bank. There will be some reaction in edible oil industry stocks as trade body SEA said oilmeal exports fell 35 per cent in June to 2,80,001 tonne, mainly due to lower demand of rapeseed meals from overseas. Exports of oilmeals stood at 4,29,616 tonne in the same month last year. Meanwhile, Reliance Industries will be in focus as investors eye the listing of Jio Financial Services. Besides, investors continue to look ahead for the quarterly earnings. Nifty 50 heavyweights Infosys and Hindustan Unilever will be reporting their June quarter results later in the day.

The US markets ended higher on Wednesday on the back of stronger-than-expected quarterly results. Asian markets are trading mixed on Thursday ahead of a slew of economic data across the region.

Back home, Indian equity benchmarks continued their bull run for the fifth consecutive day and managed to close at fresh record closing highs on Wednesday, aided by broad sectoral gains and information technology (IT) stocks. Upbeat Q1 earnings from India Inc and FIIs inflows also helped the markets maintain their winning momentum. Domestic equity markets made positive start as traders took encouragement after the Asian Development Bank (ADB) retained forecast for India's economic growth at 6.4 per cent for this fiscal year and 6.7 per cent for the next, as it's bullish that robust domestic demand will continue to support the region's recovery. Some support also came with Union Finance Minister Nirmala Sitharaman stating that various issues surrounding cryptocurrencies were discussed at a key G20 meeting and India's inputs will play an important role in formulating a comprehensive global policy for the new-age assets. However, markets erased their gains in afternoon deals and traded flat as some concern came with International Monetary Fund Managing Director (MD) Kristalina Georgieva’s statement that the medium-term growth prospects for the global economy remain weak, and elevated food and fertilizer prices are particularly worrying. Georgieva said inflation could remain higher for longer, requiring even more monetary policy tightening. But, markets once again gained traction to close higher, taking support from the Apparel Export Promotion Council (AEPC) Chairman Naren Goenk’s statement that decline in Chinese garment exports to Japan provides an immense opportunity for the Indian apparel industry to boost shipments to the island nation. He said a strong Indian garment industry with its unique offerings has a huge scope for Japanese trading companies to source from India. Some support came with a report stating that withdrawal of Rs 2,000 notes by Reserve Bank on May 19 and the subsequent near total return of the currency to the system has buoyed deposit accretion to a six-year high of Rs 191.6 lakh crore in June. Finally, the BSE Sensex rose 302.30 points or 0.45% to 67,097.44 and the CNX Nifty was up by 83.90 points or 0.42% to 19,833.15.