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Indian markets ended modestly higher on Thursday after a choppy session. Today, markets are likely to get gap-down opening tracking sell-off in the global markets. There will be some cautiousness as the India Meteorological Department (IMD) said the monsoon during the remaining two months of the season (August-September) on average is expected to be above-normal with September poised to get more rain than August. The forecast assumes significance as more than normal rains in September, the last month of the four-month season may hurt the standing kharif crops depending on their stage of maturity. However, foreign fund inflows likely to aid domestic sentiments. On Thursday, foreign institutional investors (FIIs) net bought stocks worth Rs 2,089.28 crore. Some support may come later in the day as the government data showed that GST collection in July rose 10.3 per cent to over Rs 1.82 trillion, mainly driven by domestic transactions in goods and services. This is the third-highest monthly collection recorded since the indirect tax regime was rolled out seven years ago on July 1, 2017. According to the data, total refunds stood at Rs 16,283 crore in July. Meanwhile, India and Vietnam have firmed up a new action plan to expand their strategic ties, with Prime Minister Narendra Modi asserting that both sides will work towards a free and rules-based Indo-Pacific and that New Delhi supports development and not expansionism. There will be some buzz in the coal industry stocks as the government said India's coal output rose by 6.69 per cent year-on-year to 74.07 million tonnes (MT) in July. The country's coal production was 69.42 MT in the corresponding month of previous fiscal, the coal ministry said in a statement. Banking sector stocks will be in focus ratings agency Moody's said the Reserve Bank of India's latest draft guidelines aimed at enhancing banks' ability to manage liquidity in the face of increasing digital transactions is credit positive. The central bank released a set of preliminary guidelines last month, including suggesting that banks will be required to allocate an additional 5 per cent reduction in the stability of retail deposits that have internet and mobile banking access. There will be some reaction in power sector stocks as India's power consumption rose a meagre 3.5 per cent to 145.40 Billion Units (BU) in July compared to the year-ago period as rainfall brought down temperatures from the scorching heat. Investors will focus on Q1 earnings reports and forex reserve data. In primary market, Ola Electric Rs 6,145.56 crore IPO opens for subscription on Friday in the price band of Rs 72 - Rs 76 per share. Stocks related to tour and travel will be in limelight CRISIL Ratings said rising domestic tourism and increasing propensity to travel overseas will expand the revenue of India's tour and travel operators by 15-17 per cent this fiscal. Factors like improving infrastructure, rising disposable incomes, a behavioural shift in travel patterns, and the government's increasing focus on boosting domestic tourism will further support the sector's revenue growth.

The US markets ended lower on Thursday on earnings disappointment and weaker-than-expected manufacturing data. Asian markets are trading in red on Friday tracking sell-off on Wall Street.

Back home, Indian equity benchmarks ended in green on Thursday led by gains in Utilities, Power and Energy stocks. Markets opened at new record highs and stayed in green for almost whole day as traders took encouragement after Commerce and Industry Minister Piyush Goyal expressed hope that steps such as focus on self-sufficiency, technology, stronger currency and fundamentals would help India become a $55-trillion economy by 2047. Traders also took some support with Finance minister Nirmala Sitharaman’s statement that the budget seeks to strike a fine balance among several overriding priorities and will provide impetus to local manufacturing, boost employment and raise India's share in global growth. She added growth, employment, welfare spending, capital investments, and fiscal consolidation are given equal place. Some optimism also came as the latest data released by the Controller General of Accounts (CGA) stated that sharp reduction in capital expenditure (capex) during election months and record-high dividend from the Reserve Bank of India (RBI) led to a decrease in the central government’s fiscal deficit to 8.41 per cent of the full-year target for the April-June quarter (Q1) of 2024-25 (FY25), along with the most recent FY25 Budget figures. In the corresponding period of 2023-24 (FY24), fiscal deficit was 25.3 per cent of the full-year target. However, markets gave up most of their morning gains in late afternoon deals, as the foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 3,462 crore on July 31. Some concern also came with the Ministry of Commerce & Industry in its latest data showing that the output of eight core industries slowed down to 4 percent in June 2024 from 8.4 percent in the same period last year, due to a decline in the output of crude oil, and refinery products. The core sectors' production grew by 6.4 percent in May 2024. Sentiments also got hit as India's manufacturing sector growth eased in the month of July, amid slightly softer increases in new orders and output. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 58.1 in July 2024 as against 58.3 in June 2024. However, the latest reading was above the series long-run average and one of the highest seen in recent years. But, key gauges regained some traction in final minutes of trade to end at record closing high levels, after the US Federal Reserve indicated a rate cut by September.  Finally, the BSE Sensex rose 126.21 points or 0.15% to 81,867.55, and the CNX Nifty was up by 59.75 points or 0.24% points to 25,010.90.

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