Markets likely to make positive start on firm global cues

Indian equity markets ended lower on Friday ahead of US Fed Chair Jerome Powell's speech at the Jackson Hole Symposium later in the day. Today, markets are likely to make positive start on firm cues from global markets. Sentiment may get some support as Commerce and Industry Minister Piyush Goyal and US Trade Representative Katherine Tai discussed ways to promote trade and investments between the two countries. Goyal said discussed key bilateral issues of mutual interest and explored ways to give further impetus to the growing India-US partnership through enhanced trade and investments. Traders may take note of report that G20 India Sherpa Amitabh Kant said a push for growth with free trade, concerted action on climate change and financing, accelerating the pace of outcomes of sustainable development goals (SDGs), digital transformation, and women-led development, are the key priorities for India’s G20 Presidency. However, there may be some cautiousness in the markets as government data said that foreign direct investment (FDI) into India declined 34 per cent to $10.94 billion during April-June 2023-24, dragged by lower inflows in computer hardware and software, telecom, auto and pharma. FDI inflows stood at $16.58 billion during April-June 2022-23. Inflows during January-March 2023 too had contracted 40.55 per cent to $9.28 billion. There may be some buzz in electric vehicles industry related stocks as private report said that the finance ministry is considering the proposal for including the electric vehicles infrastructure under the priority sector lending category. The move will promote and accelerate the penetration of EVs in the country and attract investments in the sector. Also, there may be some buzz in NBFC industry related stocks as the Reserve Bank of India (RBI) has directed non-banking finance companies (NBFCs), including housing finance companies (HFCs), to limit the increase in reliance on bank borrowing and has issued a caution regarding the risks associated with the growth of unsecured retail loans. Reliance Industries will be in focus, as the company will hold its annual general meeting (AGM) with the shareholders on Aug 28.

The Asian markets are trading higher in early deals on Monday following positive cues from US markets. The US markets ended higher on Friday as investors reacted positively to Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole Symposium.