IGI Logo

Indian markets settled higher on Wednesday, mirroring their global peers, amid a healthy consolidation and the likelihood of strong H2FY25 earnings forecasts. Today, markets are likely to get cautious start amid mixed global cues. Investors will closely monitor the monthly expiry of futures & options contracts on the NSE scheduled for today, which is expected to influence market volatility and trading sentiment. Investors across Asia-Pacific will assess US Q3 GDP growth second estimates, which came in-line with market expectations. However, foreign fund inflows likely to aid domestic sentiments. On the institutional front, foreign institutional investors (FIIs) bought shares worth Rs 7.78 crore on November 27. Traders may get some engouement as India Ratings and Research (Ind-Ra) said India’s fiscal deficit is expected to be 19 basis points lower at 4.75% of the gross domestic product (GDP) than budgeted in 2024-25, due to fiscal discipline and slower economic activity in the first half of the year. It noted that the government is on path to achieve the target of 4.5% in 2025-26. Some support may come with a private report that President-elect Donald Trump’s decision to impose a 25 percent tariff on Canada and Mexico after assuming office in January 2025 could end up helping India, among other countries, especially on items that are India’s top exports to the United States. PSB stocks will be in focus as public sector banks (PSBs) have secured approval from the finance ministry to raise Rs 25,200 crore in the current financial year (2024-25) from the equity market. The move will help PSBs fund their growth and meet the regulatory requirement of 25 per cent minimum public shareholding (MPS). There will be some reaction in paper industry stocks as Indian Paper Manufacturers Association (IPMA) expressed concerns over rising imports of virgin fibre paperboard from countries like China and Chile, saying that below-cost shipments are hitting local producers and threatening their investments. Meanwhile, Adani Group stocks will be in limelight amid report that three top executives of Adani Green Energy - Gautam Adani, Sagar Adani, and Vneet Jaain - have not been accused of violating the Foreign Corrupt Practices Act (FCPA) in the charges of US authorities.

The US markets ended lower on Wednesday as technology stocks slumped on Thanksgiving eve on worries the Federal Reserve may be cautious about rate cuts after stubbornly strong U.S. inflation data. Asian markets are trading mixed on Thursday reflecting a pause in Wall Street's rally overnight despite inflation data aligning with expectations.

Back home, Indian equity benchmarks ended higher on Wednesday driven by a sharp rally in Adani group stocks and fresh foreign fund inflows. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,157.70 crore on Tuesday, according to exchange data. After making a slightly positive start, key gauges traded with volatility in first half of trading session as investors avoided to take any long positions ahead of GDP numbers to be out later in the week. Some cautiousness came in with report that after running surplus liquidity of about Rs 1.4 lakh crore for over two months, the banking system saw a decline in cash, prompting the Reserve Bank of India to inject Rs 6,956 crore on November 25. However, markets exhibited a positive upside in second half of trading session to end higher as traders took support with the Finance Ministry’s latest monthly economic review stating that the upcoming administration in US after the win of Donald Trump in the latest elections is set to play an important role in trade dynamics globally. The report noted that global economic factors, including shifts in interest rates, earnings growth, and geopolitical developments, will significantly influence trade and capital flows. Some optimism also came amid reports that India's Goods and Services Tax (GST) collection for November 2024 is expected to surpass Rs 1.87 lakh crore, recorded in October, making it the second-highest monthly collection ever. The anticipated growth in GST revenue is attributed to robust domestic sales during the festive season. Besides, the government is working on an integrated platform for the insolvency ecosystem covering key stakeholders that will also help speed up resolution processes. The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, aims to provide market-linked and time-bound resolution of stressed assets. However, there have been delays in the resolution process. Finally, the BSE Sensex rose 230.02 points or 0.29% to 80,234.08, and the CNX Nifty was up by 80.40 points or 0.33% to 24,274.90.

Above views are of the author and not of the website kindly read disclaimer