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Indian markets ended higher for second straight session on Friday amid a status quo on interest rates by the Reserve Bank of India (RBI) while maintaining a hawkish stance due to an uncertain inflation outlook. Today, markets likely to get negative start amid the Israel-Palestine war, sparked over the weekend, is keeping global investors on their toes. Higher crude oil prices also likely to dampen sentiments amid global conflict in the Middle East threatens. Investors also likely to remain on sidelines ahead of kick start of earning season as well as important macro-economic data later in the week. Foreign fund outflows likely to hurt domestic sentiments. According to the provisional data available on the NSE, foreign institutional investors (FII) offloaded shares worth net Rs 90.29 crore on October 6, 2023. Some cautiousness will come as the RBI data showed that India's forex reserves drop by $3.79 billion to $586.91 billion for the week ended September 29. However, some respite may come later in the day as Reserve Bank of India Governor Shaktikanta Das said India is poised to become the new growth engine of the world, as the central bank retained the country's GDP growth forecast at 6.5 per cent for 2023-24, notwithstanding the slowing global economy. Some support may come as CII's business confidence index improved to 67.1 in the July-September quarter of FY24, reflecting robust macro fundamentals of India's economy despite global headwinds. Meanwhile, the GST Council has clarified that guarantees provided by corporates to their subsidiaries will attract an 18 per cent GST, while no tax will be levied if a personal guarantee is given by a director to the company. Coal industry stocks will be in focus as India's coal imports declined 12.08 per cent to 18.26 million tonnes (MT) in August this year over the corresponding month of the previous fiscal. There will be some reaction in edible oil industry stocks as Soybean Processors Association of India (SOPA) said India's soybean production in this crop season could drop by 4.3 per cent to 11.8 million tonnes due to the fall in yields in major states such as Madhya Pradesh, Maharashtra and Rajasthan. The US markets ended higher on Friday led by technology shares to a sharply higher close as investors assessed a jobs report that showed U.S. hiring rose broadly in September with slowing wage growth. Asian markets are trading mixed on Monday due to ongoing geopolitical tensions in the Middle East. Back home, Indian equity benchmarks extended their gains for the second consecutive session and ended with gains of over half percent on Friday aided by positive cues from other Asian markets along with buying at Realty, Consumer Durables and Financial Services counters. After the gap-up start, domestic equities inched gradually higher as the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept the key repo rate unchanged at 6.5 per cent, while maintaining the 'withdrawal of accommodation' stance. Besides, the Reserve Bank said India is poised to become the growth engine of the world as it retained the GDP projection for the current fiscal at 6.5 per cent. Unveiling the bi-monthly monetary policy review, RBI Governor Shaktikanta Das said the domestic economy exhibits resilience on the back of strong demand. Traders got encouragement as Finance Minister Nirmala Sitharaman reportedly said the inclusion of Indian bonds in JPMorgan’s widely tracked emerging market debt index could bring $23 billion worth inflows into the country. Sentiments remained up-beat in late afternoon deals, as India and the UAE have signed a Memorandum of Understanding (MoU) on increasing cooperation in the field of industries and advanced technologies. The MoU aims at strengthening and developing industries in both nations through investments, technology transfer and deployment of key technologies in industries, by benefitting from joint funds and mutual efforts. Sentiments remained positive amid a private report stating that the Centre's prospects of meeting its fiscal deficit target of 5.9 percent of GDP for the current financial year have brightened rather considerably over the last few days, with direct tax collections - both corporate and personal income tax - rising massively, and unexpectedly, in August. Finally, the BSE Sensex rose 364.06 points or 0.55% to 65,995.63 and the CNX Nifty was up by 107.75 points or 0.55% to 19,653.50.

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