Indian equity markets are likely to make a positive start on Monday, supported by a sharp fall in crude oil prices. Some support may come from foreign institutional investors (FIIs), who turned net buyers on Friday, purchasing equities worth Rs 3,598.54 crore. Traders are likely to adopt a wait-and-watch approach ahead of the release of the final HSBC Manufacturing PMI data for October later in the day.
Some of the key factors to be watched:
India’s FTAs open $85 trillion economy for exporters: Union Minister Piyush Goyal said with India's trade pacts set to provide preferential access to its goods and services in countries with a combined GDP of $85 trillion in the coming years, the industry should look beyond the huge domestic market and step out of its comfort zone to expand globally.
GST mop-up surges 23% to Rs 2.31 lakh crore in October on festive demand: The government data showed GST collections jumped 23 per cent year-on-year to the second-highest level of over Rs 2.31 lakh crore in October as festive buying boosted domestic demand.
Bank credit grows 17.94% to Rs 232.54 lakh crore, outpaces deposit growth: The Reserve Bank of India (RBI) said bank credit grew 17.94 per cent on an annual basis to Rs 232.54 lakh crore till October 15, outpacing the 16.6 per cent growth in deposits.
Centre’s fiscal deficit touches 42.1% of the full-year Budget target in April-September of FY27: The Controller General of Accounts (CGA) in its data has showed that the Centre’s fiscal deficit touched 42.1 per cent of the full-year Budget target in the first six months (April-September) of the current fiscal year (FY27).
India’s forex reserves drop by $1.27 billion to $719.75 billion: The RBI said India’s forex reserves further dropped by $1.269 billion to $719.748 billion during the week ended October 30. The overall reserves had dropped by $5.011 billion to $721.016 billion in the previous reporting week ended October 16.
Global front: The U.S. markets settled lower on Friday amid rising worries over AI-related companies' massive spending. Asian markets are trading mostly in red on Monday following the broadly negative cues from Wall Street on Friday.
Back home, Indian equity benchmarks ended higher for the second consecutive day on Friday supported by robust buying in IT firms and earnings-driven demand in the Tata Group's retail arm Trent. However, rising crude oil prices amid persistent tensions in the Middle East limited the market's gains. Meanwhile, exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 943.60 crore on Thursday. Finally, the BSE Sensex rose 308.49 points or 0.42% to 74,459.53 and the CNX Nifty was up by 116.35 points or 0.51% to 23,053.10.
Some of the important factors in trade:
India on track to achieve $1 trillion exports target in FY27 despite geopolitical uncertainties: Commerce and Industry Minister Piyush Goyal has expressed confidence that India is on track to achieve its ambitious $1 trillion exports target in FY27, despite geopolitical uncertainties and disruptions to global trade arising from the West Asia crisis and the Russia-Ukraine conflict.
India’s growth momentum holds firm, but inflation and external risks persist: Despite persistent geopolitical frictions, the Finance Ministry has said that India’s economic activity continued to expand in Q2FY27, with GDP growth estimated at 7.35 per cent, following stronger-than-expected real GDP growth of 7.8 per cent in Q1FY27.
Chairman of EAC-PM calls for strategic support to job-creating and frontier industries: S Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), has said that in the coming years, the government should support job-creating labour-intensive sectors and frontier industries, and support to them should be well-designed, linked to clear goals, and reviewed regularly.