Indian markets are likely to make gap-down opening on Friday following a selloff in global equities amid escalating geopolitical tensions in West Asia and a sharp surge in global crude oil prices. Brent crude traded above $100 a barrel after Houthi attacks on tankers in the Red Sea opened a new front in the Middle East conflict, while President Donald Trump threatened to extend strikes on Iran. The renewed spike in energy costs has heightened concerns over inflation. Besides, foreign fund outflows likely to dent investor sentiments. Provisional data available with NSE showed that Foreign Institutional Investors (FIIs) turned net sellers of domestic markets to the tune of Rs 2,999.23 crore on July 23.
Some of the key factors to be watched:
US slaps 10% tariffs on goods imported from India on issue of forced labour: The US imposed 10% tariffs on goods purchased from India and 16 other countries over the issue of the use of forced labour in the production of such items. US Trade Representative Jamieson Greer announced the new tariffs on 60 countries under Section 301 of the Trade Act, a day before the expiration of 10% additional levies on all countries.
India, Romania agree to double trade over next three years: India and Romania have agreed to double trade over the next three years and strengthen cooperation in defence, among other key areas of bilateral partnership. The President of India said that India and Romania will expand joint research and development under the Programme of Cooperation in Science and Technology.
Govt allows FDI in inventory-based model of e-commerce only for export purposes: The government has permitted FDI in an inventory-based model of e-commerce exclusively for export purposes, a move which will help increase India's outbound shipments without impacting the businesses of small retailers.
EV penetration in India to reach 10-12% by FY27: Ratings agency Ind-Ra said India's electric vehicle sector is entering a broader scale-up phase, with EV penetration likely increasing to 10-12 per cent of the overall vehicle sales in this fiscal from 8.5 per cent in the last year, driven by e-two-wheelers.
Aviation stocks will be in focus: Ratings agency ICRA said domestic air passenger traffic is expected to grow by 3-6 per cent and international by 0-3 per cent for Indian carriers in the current fiscal, and assigned a negative outlook on the Indian aviation industry.
On the global front: The US markets ended lower on Thursday as oil prices surged amid escalating tensions in the Middle East, while investors assessed quarterly earnings from two of the world's largest companies. Asian markets are trading in red on Friday tracking sell-off on Wall Street overnight coupled with another round of selling in technology stocks.
Back home, Indian equity benchmarks ended lower on Thursday, extending losses for the fourth straight session, as a sharp jump in crude oil prices due to escalating tensions in West Asia weighed on investor sentiment. Investor sentiment remained fragile as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 819.20 crore on Wednesday after a day's breather. Finally, the BSE Sensex fell 363.66 points or 0.47% to 76,391.39 and the CNX Nifty was down by 126.65 points or 0.53% to 23,869.60.
Some of the important factors in trade:
RBI net sold $6.104 billion in spot currency market in May amid pressure on Indian rupee: Amid pressure on the Indian rupee, the Reserve Bank of India’s (RBI) monthly bulletin said the central bank was a net seller of $6.104 billion in the spot foreign exchange market in May. On a gross basis, the RBI purchased $22.229 billion and sold $28.333 billion during the month.
Jaishankar holds talks with Rubio on trade, energy, defence, minerals, AI: External Affairs Minister S. Jaishankar has met US Secretary of State Marco Rubio in Manila to discuss key priorities, including trade, tariffs, energy, defence, critical minerals, and artificial intelligence (AI).
Indian economy navigates global uncertainties effectively with recovery in foreign investments: An article published in the Reserve Bank of India's (RBI) July Bulletin has said that the Indian economy has navigated global uncertainties effectively, with a recovery in foreign investments in recent months signalling renewed investor confidence.
