Markets likely to open in green on Friday

Indian markets ended mixed on Thursday weighed down by continuous selling in Adani Group stocks. Today, markets are likely to open in green amid mixed global cues and ahead of Services PMI data to be out later in the day. Some support will come as Central Board of Indirect Taxes and Customs (CBIC) chief Vivek Johri said monthly GST collection is expected to average around Rs 1.50 lakh crore and it will be the new normal in FY24 in view of concerted efforts to check evasion and bring new businesses within the GST net. Traders may take note of report that the seven-month-old windfall profit tax on domestically produced crude oil and export of fuel is likely to give about Rs 25,000 crore in the current fiscal ending March 31 and the levy will continue for now as international oil prices are up again. However, some cautiousness may come due to foreign fund outflows. Foreign institutional investors (FII) net-sold shares worth Rs 3,065.35 crore, as per provisional data available on the NSE. There will be some buzz in the sugar industry stocks industry body ISMA said the country's sugar production rose 3.42 per cent to 193.5 lakh tonnes in the first four months of the ongoing marketing year ending September, on rise in output in key producing states. Aviation industry stocks will be in focus as the Union Ministry of Civil Aviation stated that India's aviation industry suffered a loss of over Rs 24,000 crore in the last two financial years during 2020-22. As per the Union Ministry of Civil Aviation, the industry in FY 2020-21 suffered a loss of Rs 12,479 crore and in FY 2021-22 it was Rs 11,658 crore. There will be some reaction in railways stocks with report that the railways' revenue earnings are up by 73 per cent in the passenger segment during April-January 2023 as compared to the same period last year. Investors awaited more of financial results from India Inc for domestic cues, with ITC, SBI, InterGlobe Aviation and more due to post their earnings later in the day. Meanwhile, amid massive stock rout for almost a week in most of Adani group stocks, the National Stock Exchange (NSE) has put Adani Enterprises, Adani Ports and Ambuja Cements under additional surveillance measure (ASM) framework effective February 3, 2023 to curb short-selling.

The US markets ended mostly in green on Thursday as a more dovish-than-expected message from Federal Reserve Chair Jerome Powell boosted equities and Meta Platforms shares soared on rigorous cost controls. Asian markets are trading mixed on Friday with Chinese and Hong Kong stocks declining after tech giants Apple, Amazon and Alphabet posted disappointing financial results.

Back home, Indian equity benchmarks exhibited mixed trends in highly volatile trade on Thursday as investors remained wary of the deep selloff in Adani Group stocks, despite an overall positive Budget 2023 tone. Markets made a negative start and were trading in red for most part of the day as traders got anxious with Moody's Investors Service stating that the Indian federal government’s aim to achieve a fiscal deficit target of 4.5% of gross domestic product (GDP) by 2025/26 could see some risks. The current pattern suggests that perhaps there could be some upward pressure on expenditure especially if they (government) continue with this focus on capex. Traders also remained cautious with a private report stating that the country's fast-moving consumer goods (FMCG) industry witnessed a consumption slowdown in the December quarter, with an overall ''negative'' volume growth, as consumers continue to reel under inflationary pressure. However, markets recovered in last hour of trade with Sensex ending more than 200 points higher and Nifty 50 ending flat. Traders found some solace with Commerce and Industry Minister Piyush Goyal’s statement that number of measures such as tweaks in customs duties on certain products announced in the Union Budget for 2023-24 will help boost the country's exports. Some support also came with Former Niti Aayog Vice Chairperson Arvind Panagariya’s statement that India is on the cusp of returning to a high growth trajectory and voiced confidence that the country will become the world’s third-largest economy by 2027-28. He said India is currently in a spot that it was in 2003 when the growth rate picked up to close to about 8 per cent and the country sustained that kind of rate for a few years. Finally, the BSE Sensex rose 224.16 points or 0.38% to 59,932.24 and the CNX Nifty was down by 5.90 points or 0.03% to 17,610.40.