Opening Bell : Benchmarks likely to make pessimistic start on Friday
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Indian equity markets are likely to extend their southward journey with pessimistic start on Friday following negative global cues, driven by worries over a prolonged conflict between the US and Iran. Traders are also likely to remain worried over rise in retail inflation of India.
Some of the key factors to be watched:
India’s retail inflation rises to 3.21% in February: Retail inflation in the country moved up to 3.21 per cent in February compared to 2.74 per cent in the preceding month. The inflation data is based on the new CPI series with base year 2024.
Foreign funds outflows: Foreign Institutional Investors net sold shares worth Rs 7,049.87 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs 7,449.77 crore.
India, Chile agree to boost cooperation in trade, investment, mineral exploration: India and Chile have agreed to boost cooperation in trade, investment, health and pharmaceuticals, science and technology and other sectors. They also agreed to diversify bilateral ties in new and emerging areas of contemporary relevance such as digital public infrastructure, innovation and green energy.
Attempts on to control LPG crisis: Union Minister of State for Petroleum and Natural Gas Suresh Gopi said that efforts are underway to bring the LPG crisis under control and that avenues are opening for India to secure additional supply.
Edible oil stocks will be in focus: India's crude sunflower oil imports fell 51 per cent to 1,45,000 tonne in February, an industry body said on Thursday, as the ongoing conflict in West Asia and disruptions to Black Sea shipping routes pushed prices sharply higher.
On the global front: The US markets ended lower on Thursday after Iranian strikes on two oil tankers pushed crude prices toward $100 per barrel, intensifying inflation concerns. Asian markets are trading mostly lower on Friday as tension in the Middle East sparked fears of a weak economic outlook.
Back home, Indian equity benchmarks continued their downtrend for the second straight session and ended with deep cuts on Thursday, amid a sharp rise in crude oil prices due to the heightening crisis in West Asia. Besides, sluggish global market trends, weakness in the rupee and persistent foreign capital outflows also rattled investors' sentiments. Finally, the BSE Sensex fell 829.29 points or 1.08% to 76,034.42 and the CNX Nifty was down by 227.70 points or 0.95% to 23,639.15.
Some of the important factors in trade:
India's real GDP growth likely to moderate to 7.1 per cent in FY27: Crisil Intelligence report stated that conflict in West Asia, if prolonged, could pose a downside risk to India's economic outlook due to its impact on crude oil and commodity prices. In its base case, the report expects India's real GDP growth to moderate to 7.1 per cent in FY27, which is still healthy and slightly above potential.
Indian fuel retailers face margin, cash-flow pressure: Moody’s Ratings said state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) absorbing the impact of elevated global energy prices will lead to heightened margin and cash-flow volatility. The three firms control nearly 90 per cent of retail fuel outlets in the country.
Govt fully geared to meet coal demand surge amid West Asia crisis: The government said that it is fully prepared to meet any unprecedented surge in coal demand, with overall coal stocks at about 210 million tonne -- adequate for around 88 days amid escalating tensions in West Asia threatening global energy supplies.
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