Markets likely to make cautious start on Thursday

Indian equity markets are likely to make a cautious start on Thursday after deadly attacks on vessels in the Red Sea and Gulf of Oman heightened concerns over risks to global shipping routes. Additionally, sentiments may remain down beat as foreign institutional investors (FIIs) turned net seller on Wednesday, offloading Indian equities worth Rs 1,002.50 crore.

Some of the key factors to be watched: 

Retail inflation rises to 4.45% in July as food prices remain elevated: Retail inflation, measured by the All India Consumer Price Index (CPI) with the base year 2024, rose to 4.45% (Provisional) in July 2026 from 4.38% (Final) in June 2026, as food prices remained elevated. 

Commerce Secy Rajesh Agrawal to visit Chile this month to review CEPA talks: The report said Commerce Secretary Rajesh Agrawal will visit South American nation Chile later this month to take stock of the progress of the India-Chile trade agreement. India and Chile implemented a Preferential Trade Agreement (PTA) in 2006 and are now negotiating to widen its scope for a CEPA (Comprehensive Economic Partnership Agreement). 

India, SACU group launch trade pact talks: India and the South Africa-led SACU group have signed a roadmap for launching negotiations for a preferential trade agreement to boost economic ties. The terms of reference, a roadmap which sets out broad parameters for trade talks, were signed here by chief negotiators of the two regions in the presence of Commerce and Industry Minister Piyush Goyal. 

EAC-PM pitches for targeted support measures to boost private investments: The Economic Advisory Council to the Prime Minister (EAC-PM) has recommended the intensification of targeted support measures for innovative firms to accelerate investment decisions while calling for more public investment to crowd in private investment. 

RE-transmission gap a key credit risk in India: India Ratings and Research (Ind-Ra) has said the growing gap between renewable energy (RE) commissioning and transmission readiness is emerging as a key credit risk for the sector. 

Global front: US markets ended mostly in green on Wednesday, while Asian markets are trading mostly higher on Thursday as investors took comfort from softer-than-expected US inflation data, which helped ease concerns over potential interest rate hikes by the Federal Reserve. 

Back home, Indian equity benchmarks recovered significant losses but ended marginally lower on Wednesday amid rising crude oil prices on fresh concerns over tensions in the Middle East. Investors also awaited key U.S. consumer and producer price readings for fresh insights into the Federal Reserve's next move. However, the benchmarks recovered most of their intraday losses in the final hours, supported by continued buying from foreign institutional investors (FIIs), who purchased Indian equities worth Rs 258.55 crore on August 11. Finally, the BSE Sensex fell 187.90 points or 0.24% to 77,966.35 and the CNX Nifty was down by 35.75 points or 0.15% to 24,435.95. 

Some of the important factors in trade: 

India's exports up 15% in Apr-Jul despite global uncertainties: Commerce and Industry Minister Piyush Goyal said the country's exports increased by about 15 per cent during April-July this fiscal year despite global uncertainties. He also expressed confidence that the target of $1 trillion worth of goods and services exports for 2026-27 will be achieved.

India’s growth momentum remains strong, Q1FY27 GDP growth likely at 8%: Expressing optimism over India’s growth prospects, SBI Research in its latest report has said that the country’s Gross Domestic Product (GDP) growth is likely to rise to 8% in the first quarter of the current fiscal year (Q1FY27), higher than the Reserve Bank of India’s (RBI) 7% growth projection. 

India’s net direct tax collection rises 23% to Rs 8.11 lakh crore as of August 10 in FY27: The government in its data has said that India’s net direct tax collections rose by 23.09 per cent to over Rs 8.11 lakh crore as of August 10 in the current fiscal year (FY27).