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Domestic markets likely to open in green ahead of WPI data

Asian markets are trading mostly in green on Thursday, while the US markets ended mostly higher on Wednesday

Indian markets extended their winning ways into the fifth straight session on Wednesday as encouraging macro-economic data and hopes of strong Q2 earnings bolstered sentiment. Today, markets are likely to continue their previous session’s gaining momentum with positive start amid mixed global cues. Markets participants will keenly watch out for WPI Inflation numbers to be out later in the day. Traders may continue to take support with Finance Minister Nirmala Sitharaman’s statement that India will witness close to double-digit economic growth this financial year (FY22), which would be the highest among the major economies of the world. She added the economy is expected to grow at 7.5-8.5 per cent - as projected by rating agencies - in the next financial year, and the growth would sustain at this range for the next decade. Some support will also come as Retailers Association of India (RAI) said retail sales in September this year were at 96 per cent of the pre-pandemic levels of the same month in 2019 as the sector shows signs of recovery. Traders may take note of a private report that India remained at the third position on Renewable Energy Country Attractiveness Index (RECAI), which ranks the world's top 40 markets (nations) on the attractiveness of their renewable energy investment and deployment opportunities. Meanwhile, India is unlikely to revise its digital tax regime even after it agreed to overall tax norms along with 135 OECD nations. These countries including India had agreed on the global minimum corporate tax rate of 15 percent and doing away with digital taxes. Energy stocks will be in limelight as Domestic rating agency Icra said it expects the availability of coal to power plants to improve gradually during the current month with expected augmentation in both coal production and dispatch levels. There will be some buzz in the fertilizer industry stocks after Rating agency ICRA termed the government's decision to provide a special one-time package for extra subsidy on DAP fertiliser as positive for farmers as well as the industry, and said the availability of key nutrients will improve in the coming months. Cement industry stocks will be in focus as rating agency Icra expects the all-India cement production in FY22 at 332 million tonne, up 12 per cent from last year supported by pent-up demand, rural housing requirement and pickup in infrastructure activity. There will be some important earnings announcements too to keep the markets buzzing.

The US markets ended mostly higher on Wednesday led by gains in shares of big growth names like Amazon.com and Microsoft, but JPMorgan shares fell along with other bank shares and weighed on the market. Asian markets are trading mostly in green on Thursday tracking gains on Wall Street.

Back home, Indian equity benchmarks continued bulls run to end at a record close for the third straight session on Wednesday with Sensex ending near 60,750 level which Nifty above 18,150 mark for the first time ever led by buying across the sectors. Falling retail inflation and prospects of better corporate earnings are other key reasons driving markets. After opening in the green, benchmark indices continued to gain momentum, as investors react to positive macroeconomic data. India's consumer price inflation slowed more than expected in September, while industrial production grew in line with expectations in August. The consumer price index rose 4.35 percent year-on-year following a 5.30 percent in August. Street had forecast a 4.50 percent increase. Industrial production rose 11.9 percent year-on-year in August while market participants had forecast 12.0 percent increase. Benchmarks maintained their upward momentum in late afternoon deals, taking support from Finance Minister Nirmala Sitharaman’s statement that India is looking at near close to double-digit growth this year and the country will be one of the fastest-growing economies. The minister also emphasized that she expects the economic growth next year to be in the range of 7.5-8.5 percent, which will be sustained for the next decade. Sentiments also remained up-beat as International Monetary Fund (IMF) said that India's economy, which contracted by 7.3 percent due to the COVID-19 pandemic, is expected to grow by 9.5 percent in 2021 and 8.5 percent in 2022. It also said India is doing well in terms of vaccinating its own people and this is certainly helpful in its economy. Meanwhile, Union Minister Narayan Rane exhorted MSME Ministry officials to brace up for enhancing the output of micro, small and medium enterprises sector, highlighting its potential to boost India's exports and GDP growth. Finally, the BSE Sensex rose 452.74 points or 0.75% to 60,737.05 and the CNX Nifty was up by 169.80 points or 0.94% to 18,161.75.