Indian markets reached record closing highs on Thursday, driven by strong gains in IT stocks following positive Q1 results for FY25. Today, markets are expected to start flat-to-positive despite negative cues from global markets. Infosys posted better-than-expected Q1 results after market hours on Thursday, boosting its ADR by over 8% on NYSE. Movement in heavyweights like Reliance Industries and HDFC Bank, ahead of their Q1FY25 results today and tomorrow, will also influence the markets.

Positive sentiment is supported by FICCI’s Economic Outlook Survey, predicting 7% GDP growth for 2024-25, and the Reserve Bank of India's (RBI) raised GDP growth projection to 7.2% for this fiscal. The RBI's monthly bulletin indicates a strong start to Q2 of 2024-25, with improved agricultural outlook and rural spending. Additionally, Crisil noted a 5.8% rise in India's merchandise exports to $109.96 billion in Q1 FY25. The RBI reported a significant increase in NRI deposits, reaching nearly $3 billion in April-May FY25, compared to the same period last year.

E-commerce stocks may react to recommendations to increase the consignment limit for courier exports to $50,000 from $12,000. Sugar stocks will be in focus as ICRA projects a decline in net sugar production for the 2025 season. The fintech industry is also expected to see growth, with estimates reaching $110 billion in 2024 and projected to hit $420 billion by 2029.

US markets ended lower on Thursday as investors shifted away from high-priced megacap growth stocks amidst the second-quarter earnings season. Asian markets are trading in red on Friday, following Wall Street's trend of profit-taking in tech stocks.

Back home, Indian equity benchmarks surged in late deals on Thursday, achieving new record closing highs, supported by gains in IT, TECK, and FMCG stocks. Early trading was lackluster due to caution ahead of the Budget announcement and rising crude oil prices. The RBI's latest KLEMS database showed a decline in labour productivity in nine out of 27 industries in FY23. However, a strong afternoon session pushed benchmarks to record highs, with the International Monetary Fund raising India's growth forecast for FY25 to 7%. The Asian Development Bank also maintained India's GDP growth forecast at 7% for FY25, citing expected agricultural rebound due to above-normal monsoon projections. Additionally, a private report highlighted India's aim to boost annual foreign direct investment by over 50%.

The BSE Sensex rose 626.91 points or 0.78% to 81,343.46, and the CNX Nifty was up 187.85 points or 0.76% to 24,800.85.