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Indian equity markets ended higher with gains of over one percent on Wednesday as S&P Global Ratings in its report titled China Slows India Grows has said India's GDP growth rate will rise to 7 per cent by 2026 compared to 4.6 per cent for China. Today, markets are likely to make cautious start amid mixed cues from global markets. Traders will be eyeing on the Gross Domestic Product (GDP) data for Q2 to be out later in the day for more cues. Trading likely to be volatile in day’s session amid the fresh spike in crude oil prices and the monthly futures & options expiry later in the day. There may be some cautiousness in the markets as the exit polls of five state elections to be out later in the day. However, traders may get some support as Economic Affairs Secretary Ajay Seth said Indian economy is showing momentum and the growth rate in the second quarter (July-September) is likely to be good. The economy grew at 7.8 per cent in the first quarter (April-June) of the current financial year. He further said that the fiscal deficit target of 5.9 per cent for the current financial year was feasible despite additional outgo towards food subsidy. Further, foreign fund inflows likely to support sentiments. Provisional data from the National Stock Exchange showed that foreign institutional investors net bought shares worth Rs 71.91 crore on November 29. Traders take a note of report that India is not expected to be impacted by a potential cut in oil production by the Opec+ countries, given the existing lower global industrial demand outlook and continuing discounts on Russian crude. Meanwhile, coal and Mines Minister Pralhad Joshi launched the auction of 20 critical minerals worth Rs 45,000 crore. Of the 20 minerals put on sale, two are lithium blocks.

Asian markets are trading mixed in early deals on Thursday as manufacturing activity in China contracted further. US markets ended mostly in red on Wednesday as traders looked ahead to the release of key inflation readings on Thursday. 

Back home, extending gains for the second straight day, Indian equity benchmarks staged a smart rally and ended with gains of over a percent on Wednesday, driven by foreign fund inflows along with buying in market heavyweights Axis Bank, Mahindra & Mahindra and Wipro. After the gap-up start, markets moved from strength to strength and settled around the day’s high as sentiments got support with S&P Global Ratings’ report stating that India's GDP growth rate will rise to 7 per cent by 2026 compared to 4.6 per cent for China. It expects Asia-Pacific's growth engine to shift from China to South and Southeast Asia. Sentiments remained up-beat with rating agency ICRA’s report stating that the credit metrics of India Inc. are likely to show slight sequential improvement in Q3 FY2024, with interest coverage increasing to 4.5-5.0 times in Q3 FY2024 from 4.5 times in Q2 FY2024. The credit metrics would result from improved earnings of Corporate India, on the back of continuing, albeit moderating tailwinds from commodity prices and seasonally strong demand during the recently concluded festive season.  Key gauges extended gains in late afternoon deals, as traders got solace amid a private report stating that the market value of companies listed on the BSE crossed a record $4 trillion for the first time riding on the sustained rally in Indian equities. As of November 29, the total market cap (MCap) of all BSE-listed companies hit $4.01 trillion or over Rs 333 trillion, climbing over $600 billion since the beginning of the year. Some optimism also came as Engineering Exports Promotion Council (EEPC) India stated that Indian engineering exports to 18 key markets recorded positive growth in October, 2023.  Countries which registered positive growth in exports during October include the UK, US and UAE among others. However, it said that China, Italy, Singapore and Indonesia were among the countries that saw a decline in engineering shipments during the month. Finally, the BSE Sensex rose 727.71 points or 1.10% to 66,901.91 and the CNX Nifty was up by 206.90 points or 1.04% to 20,096.60.      

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