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Indian markets ended significantly lower on Tuesday following a sell-off in index majors TCS, Infosys and RIL and weak Asian trends as Japan’s central bank hiked rates for the first time in 17 years. Today, markets are likely to open in green amid positive moves across global markets. Foreign fund inflows likely to aid domestic sentiments. Foreign institutional investors (FIIs) net bought shares worth Rs 1,421.48 crore on March 19, provisional data from the NSE showed. Traders will be taking encouragement as S&P Global Market Intelligence said India’s economy will likely grow 6.8% in FY25, up from 6.5% projected earlier, on the back of stronger growth momentum and improving global prospects. It said ‘We have revised up 2024’s growth forecast for India due to stronger than expected momentum at the start of the year. An improving global economic environment and an expected gradual easing of domestic financial conditions will support economic activity’. More optimism will be come as the government data showed India's net direct tax collection recorded a growth of 19.88 per cent to over Rs 18.90 lakh crore till March 17. The Income tax department data also stated that the net direct tax collection of Rs 18,90,259 crore (as of March 17) includes Corporation Tax (CIT) at Rs 9,14,469 crore (net of refund) and Personal Income Tax (PIT), including Securities Transaction Tax (STT) at Rs 9,72,224 crore (net of refund). Some support will come as an article on the 'State of Economy' in the central bank's March Bulletin showed that India can sustain 8 per cent annual GDP growth and the conducive macroeconomic configuration may become a launching pad for a step-up in the country's growth trajectory. However, there may be some cautiousness as the Reserve Bank of India’s data in the March 2024 bulletin showed that the net foreign direct investment (FDI) in India, inflows minus outflows, declined 38.4 per cent year-on-year to $15.41 billion in the first 10 months of this financial year due to an increase in the repatriation of capital. As per the data, FDI in India was $25.53 billion and outflows were $10.11 billion in April 2023-January 2024. There will be some reaction in beverages industry stocks as ICRA said the domestic alcohol beverages (alcobev) industry is expected to grow at 8-10 per cent along with an improvement in margins, helped by a moderation of raw materials prices.

The US markets ended higher on Tuesday after shares in hotshot chipmaker Nvidia shook off early losses and investors looked ahead to the Federal Reserve's policy meeting conclusion on Wednesday for clues on interest rate policy. Asian markets are trading mostly in green on Wednesday as investors digested the Bank of Japan’s landmark shift in monetary policy while awaiting the U.S. Federal Reserve’s interest rate decision.

Back home, Indian equity markets witnessed a huge sell-off on Tuesday and ended with losses of over a percent due to weakness in IT, TECK and FMCG stocks. Benchmark indices opened on a negative note and extended the losses as the day progressed as traders preferred to avoid any unwarranted risk ahead of the US Fed's monetary policy due tomorrow. Additionally, the gradual increase in crude oil prices further dampened market sentiment. Traders remained cautious with provisional data from the NSE showing that foreign institutional investors (FIIs) net sold shares worth Rs 2,051.09 crore on March 18.  Some concern also came amid a private report stating that India is unlikely to achieve the 8%-10% economic growth rates that China pulled off over the long term. It said economic progress in India is being hamstrung by a lack of infrastructure, and a low skilled workforce. Sentiments remained under pressure in late afternoon deals, even as data showed that India’s outward foreign direct investment (FDI) commitments rose substantially to $3.47 billion in February 2024, compared to over $2.82 billion in February 2023. Sequentially, FDI commitments were also up from $2.18 billion in January 2024. Traders overlooked reports that the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh revealed that the Government of India’s plans to introduce a dedicated policy aimed at fostering deep-tech startups. Singh disclosed that the government is currently in the advanced stages of crafting a specialized policy framework specifically tailored to support deep-tech startups. Traders also paid no heed towards newly elected president of apex exporters body FIEO Ashwani Kumar’s statement that the country’s merchandise exports are expected to reach $450 billion by the end of this fiscal despite geo-political challenges like the Red Sea crisis. He said that the need of the hour is to address the Red Sea crisis challenges by ensuring the availability of marine insurance and rational increase in freight charges. Finally, the BSE Sensex fell 736.37 points or 1.01% to 72,012.05 and the CNX Nifty was down by 238.25 points or 1.08% to 21,817.45.

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