Markets likely to open in green on Friday

Indian markets extended gains to a third straight day on Thursday, backed by buying across most sectors. Today, markets are likely to open in green for yet another day following firm global cues. Traders will be getting encouragement with a private report that India can generate $813 billion in revenue creating 152 million jobs, with an investment of $272 billion in agritech and allied segments by 2030, making it the largest private sector industry in the country. Traders may take note of Jayant Sinha, Chairperson, Parliament Standing Committee on Finance’s statement that the government is working to bring changes in the GST Act and other public platforms so that companies can utilise data to grow big in size and scale. However, traders may be concerned as the Federation of Indian Export Organisations (FIEO) said India’s exports growth may slow to 15-17.5% in FY23 but containment of Covid-19 through massive vaccination across the globe and creation of required capacity will be the decisive factors. There may be some cautiousness with the Centre for Monitoring Indian Economy’s statement that the outbreak of pandemic has led to an increase in the number of households with no earning members making them more vulnerable to the pandemic. Meanwhile, a key government panel has suggested amendments to the Insolvency and Bankruptcy Code including provisions related to time period taken for approval of resolution plans, avoidable transactions and wrongful trading. Oil & gas industry stocks will be in focus as data on the website of the Petroleum Planning and Analysis Cell (PPAC) showed India's crude oil imports in November rose to their highest level in 10 months as refiners stocked up to boost runs in anticipation of strong demand in the world's third-largest oil consumer and importer. There will be some reaction in hospitality industry related stocks with private report that the Indian hospitality industry, battered by the pandemic, is on alert mode but not panicking yet in the face of the Omicron variant threatening to derail prospects of winter holiday season business. Aviation industry stocks will be in limelight with report that the Indian aviation industry was able to breathe a little easier in 2021 as domestic flight operations reached their pre-pandemic levels even though international services continued to remain curtailed due to Covid-related travel restrictions. Shares of Data Patterns (India) will list on the stock exchanges today. The Rs 588 crore IPO (Initial public offering) of the company was heavily oversubscribed earlier this month.

The US markets ended higher on Thursday as investors and traders were optimistic about positive economic data and discounted the impact of the Omicron coronavirus variant on the economy, even as COVID-19 case counts soar. Asian markets are trading mostly in green on Friday following Wall Street’s overnight rally.

Back home, extending rally for third straight session, Indian equity benchmarks ended the Thursday’s trade above their crucial 57,300 (Sensex) and 17,050 (Nifty) levels, as investors cheered to studies about omicron reduced risk of hospitalization and severe disease with omicron compared to delta. Traders took some support with report that the I-T department said income tax refunds of over Rs 1.44 lakh crore have been issued to 1.38 crore taxpayers so far this fiscal. This includes 99.75 lakh refunds of Assessment Year (AY) 2021-22 (fiscal ended March 31, 2021) amounting to Rs 20,451.95 crore. Market participants also took some solace with MPC minutes released by the central bank showing that RBI Governor Shaktikanta Das pitched for continued policy support to nurture revival in sectors especially those which are exposed to the evolving headwinds in the wake of spread of Omicron variant of Covid. Markets extended gains as additional support came after rating agency ICRA said that profitability of sugar, fertiliser and dairy sectors will remain stable in FY22, with only three months left to close the financial year 21-22. Traders also got some support after Commerce and Industry Minister Piyush Goyal has pitched for simplicity with an aim to formulate measures to improve ease of living, doing business and reduce the compliance burden. He also called for the creation of a single identification number for businesses and individuals by merging several identification numbers that exist presently, such as Aadhaar, PAN and TAN, so that delivery of services becomes smoother and faster. Meager profit booking witnessed in later part of the trade but, market participants went home with a decent gains shrugging off private report that Indian Consumer Price Index could rise as much as 150 basis points putting pressure on the central bank, if the GST council chooses to raise rates for many goods in line with the recommendations of the finance commission. Finally, the BSE Sensex gained 384.72 points or 0.68% to 57,315.28 and the CNX Nifty was up by 117.15 points or 0.69% to 17,072.60.