HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Markets likely to make positive start amid FIIs inflows
Jul-31-2026

Indian equity markets are likely to make positive start on Friday as a sharp rally on Wall Street and a broad rebound across Asian markets improve global risk sentiment. Some support may come amid foreign fund inflows. Foreign institutional investors (FIIs) extended their buying streak on July 30, purchasing Indian equities worth Rs 3,623.51 crore.

Some of the key factors to be watched:

India-EU FTA has comprehensive provisions to address CBAM issues: Additional Secretary in the Department of Commerce Darpan Jain said there is a comprehensive work plan under the India-EU free trade agreement to address concerns over the European Union's carbon tax, expressing hope that domestic small and medium enterprises will not face any problems due to that measure.

India's electronics, semiconductor production target to unlock major manufacturing opportunities: Department for Promotion of Industry and Internal Trade (DPIIT) Secretary, Amardeep Singh Bhatia said as India is targeting a sharp expansion in electronics and semiconductor manufacturing, with annual production target of $500 billion by 2030 and $5.3-8 trillion by 2047, the country is expected to unlock significant manufacturing opportunities.

RBI pushes Basel pillar 3 disclosure by 6 months to April 2027: The RBI has pushed the implementation of the amended Basel Pillar 3 disclosures by six months to April 1, 2027, accepting stakeholder feedback. It said the disclosure templates have been suitably modified to incorporate the guidelines on ECL and capital charge for credit risk under the standardised approach.

SEBI issues operational framework to accelerate launch of AIF schemes: Markets regulator SEBI has released an operational framework for a green channel mechanism, GARUDA, to simplify and speed up the launch of schemes by Alternative Investment Funds (AIFs).

Banking stocks will be in focus: The RBI has said banks will have to offer uniform interest rates on deposits across all branches, without discrimination for similar amounts deposited by customers on the same day. Also, the interest rates payable on deposits must be strictly as per the schedule of interest rates disclosed in advance on websites of respective banks.

On the global front: Asian markets are trading mostly in green on Friday following the broadly positive cues from Wall Street overnight. The US markets ended sharply higher on Thursday after a Fed-fueled sell-off, with Microsoft (MSFT) leading a tech rally as investors looked ahead to more earnings and brushed off fresh US attacks on Iran and worries about AI spending.

Back home, Indian equity benchmarks ended on positive note in the volatile session on Thursday, driven by a rally in blue-chip stocks Maruti Suzuki India, Mahindra & Mahindra and Reliance Industries. Also, strengthening foreign fund inflows, a firmer rupee, and encouraging Q1FY27 earnings supported sentiment. However, gains remain capped as investors remained watchful of the evolving geopolitical situation in West Asia. Finally, the BSE Sensex rose 273.55 points or 0.35% to 77,928.15 and the CNX Nifty was up by 66.95 points or 0.28% to 24,317.15.  

Some of the important factors in trade: 

India-US BTA first tranche to come into operation as India gets comparative advantage: Commerce and Industry Minister Piyush Goyal has said that the first tranche of the bilateral trade agreement (BTA) between India and the US will come into operation as soon as the United States is able to ensure that India gets a comparative advantage over its competitors. 

Services index shows 16 sub-sectors recorded double-digit growth in May: The government has released the second sub-sectoral trial Index of Services Production, which showed eight out of the 19 sub-sectors of formal services recorded double-digit growth in May 2026. The Ministry of Statistics & Programme Implementation (MoSPI) released the Index of Services Production (ISP) for May 2026 on 19 sub-sectors, with base year 2024-25.

GST implementation strengthens state governments’ tax revenues, improves tax buoyancy: India Ratings and Research (Ind-Ra) has said that the implementation of the GST has significantly strengthened state governments’ tax revenues and improved tax buoyancy, with Maharashtra accounting for the highest share of state taxes post-GST.

  RELATED NEWS >>