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Indian equity markets ended near fresh highs levels on Wednesday as investors continued to hunt for fundamentally strong stocks. Today, markets are likely to make negative start on weak cues from the other Asian markets. Traders may be cautious as foreign institutional investors (FIIs) offloaded shares worth Rs 3,535.43 crore on June 26.  Rising crude oil prices may also weigh on the market sentiments. However, some support may come later in the day as CRISIL in its latest report has said that India’s current account surplus in the fourth quarter of the 2023-24 fiscal was aided by narrowing of the merchandise trade deficit, an increase in remittances and a surplus in services trade. Some support may also come in as Economic think-tank National Council of Applied Economic Research (NCAER) pegged India’s FY25 growth at about 7.5% on the back of buoyant economic activity. It noted that this outlook was underpinned by the buoyancy in economic activity witnessed in the first quarter, a keen policy focus on investment and growth and macroeconomic stability; and the expectations of normal monsoon. There may be some buzz in banking industry related stocks as Department of Financial Services chaired review meeting with heads of Public Sector Banks. Also, there may be some buzz in online gaming industry related stocks as the Directorate General of GST Intelligence (DGGI) has sent fresh summons to online gaming companies, including Delta Corp, seeking details of the cashback given to the players from October onwards.

On the global front, Asian markets are trading mostly in red in early deals on Thursday after the Japanese yen weakened to a near 38-year low late Wednesday, hitting 160.82 against the U.S. dollar. The yen last breached the 160 level against the dollar two months ago, prompting the Japanese government to prop it up in the country’s first currency intervention since 2022. US markets ended higher on Wednesday after a choppy trading session, with investors holding their cards close to the vest ahead of a presidential debate and an inflation report closely watched by Federal Reserve policy makers.

Back home, Indian equity benchmarks continued their record closing run on Wednesday, supported by a buying in heavyweight stocks such as Reliance Industries, Bharti Airtel and Ultratech Cement. Markets made cautious start and traded slightly in red in early morning deals as traders were cautious with private report stating that a sluggish monsoon leading to subpar kharif sowing could queer the pitch further for food inflation, which already remains elevated. However, key gauges soon gained momentum and gradually climbed throughout the session, as traders found support with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that India is at the threshold of a major structural shift in its growth trajectory. He added that India is moving ahead towards 8 per cent GDP growth in a sustained manner, adding that the average growth India recorded in the last three years is 8.3 per cent. Markets extended gains in late afternoon deals and closed near the day's high, taking support from Reserve Bank of India’s data showing that India’s financial position with the rest of the world improved over the year. The country increased its overseas assets more than it increased its foreign liabilities, largely due to a rise in reserve assets. During the financial year 2023-24, the net claims of non-residents on India decreased by $5.5 billion. This happened because India’s external financial assets grew by $109.8 billion, which was more than the increase in its external financial liabilities, which grew by $104.3 billion.  Some optimism also came with report that the FMCG sector in India is set to grow at a sustained rate of 7-9% in 2024, bolstered by proactive government initiatives aimed at stimulating consumption and creating job opportunities. The industry has shown remarkable resilience and adaptability, supported by robust government backing and significant digital transformation efforts, positioning it to navigate through uncertainties and emerge stronger. Finally, the BSE Sensex rose 620.73 points or 0.80% to 78,674.25, and the CNX Nifty was up by 147.50 points or 0.62% points to 23,868.80.

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