Markets likely to make flat-to-positive start on Friday

Indian equity markets are likely to make a flat-to-positive start on Friday, tracking gains in global markets. Traders are likely to adopt a wait-and-watch approach ahead of the release of India's Index of Industrial Production (IIP) data for July later in the day. Investors will also closely watch Federal Reserve Chair Kevin Warsh's highly speech at the Jackson Hole symposium for further clues on the US interest rates trajectory.

Some of the key factors to be watched: 

S&P affirms India’s BBB sovereign rating; cites dynamic economy, policy stability: S&P Global Ratings has retained India’s sovereign rating at BBB with a stable outlook, saying India is a dynamic and fast-growing economy with policy stability and high infrastructure investment.

India Ratings revises FY27 bank credit growth upward to 15%: Domestic credit rating agency India Ratings has revised its FY27 bank credit growth estimate upward to 15 per cent from earlier 13 per cent, but flagged an impact on profitability as lenders set aside money for transitioning to the expected credit loss system of provisioning.

India Inc revenue growth to moderate to 13-15% in Q2; margins to contract: ICRA Ratings said India Inc's revenue growth will contract to 13-15 per cent in the ongoing September quarter from the 21.3 per cent level in April-June. From a profitability perspective, the operating profit margin is set to compress by over 1 percentage point.

Closer India-Canada economic cooperation gains importance amid global uncertainty: Union Finance Minister Nirmala Sitharaman said closer economic cooperation between India and Canada has assumed greater significance amid a rapidly changing global landscape marked by geopolitical uncertainty. 

India seeks BRICS consensus on West Asia, maritime trade: The report said India is holding frank discussions with BRICS member nations on having a consensus declaration at the upcoming New Delhi summit of the grouping, focusing on resolution of the conflict in West Asia through dialogue and diplomacy and to ensure free flow of maritime commerce.

Global front: U.S. markets settled in green on Thursday ‌after chip maker Nvidia's bumper revenue forecast reaffirmed the strength of the AI boom and fueled gains in technology stocks. Asian markets are trading mostly in green on Friday following the broadly positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks ended lower for a second consecutive session on Thursday, as expiry-led volatility and continued uncertainty over a diplomatic breakthrough in the Middle East weighed on sentiment. Investors also remained on sidelines ahead of Kevin Warsh's first Jackson Hole speech as Fed Chair on Friday that could provide further clues on the path for U.S interest rates. Finally, the BSE Sensex fell 539.35 points or 0.70% to 76,933.59 and the CNX Nifty was down by 116.90 points or 0.48% to 24,090.85.   

Some of the important factors in trade: 

India-Japan bilateral trade likely to reach $50 billion by 2030: Expressing optimism over India’s trade relations with Japan, the Associated Chambers of Commerce and Industry of India (Assocham) has said that bilateral trade between the two countries is likely to reach $50 billion by 2030, up from $27.47 billion in 2025-26, driven by growing economic complementarities and deeper business engagement.

India Inc's acquisitions double since FY17: The rating agency Crisil has said that the overall acquisitions by India Inc have doubled since FY17. It also highlighted variety of reasons behind corporates opting for acquisition including accelerating growth, expanding market access and acquiring capabilities. 

India emerges as world’s third-largest startup ecosystem: Highlighting India’s emergence as the world’s third-largest startup ecosystem, Union Minister of Commerce and Industry, Piyush Goyal has said that nearly 250,000 startups have been established over the past decade.