On Thursday, Indian markets closed nearly unchanged despite significant global market declines due to a shift from tech stocks to more economically sensitive sectors. Today, markets are anticipated to open with a flat-to-positive trend, influenced by gains in Asian markets. Support for the market comes from statements by Reserve Bank of India Deputy Governor M Rajeshwar Rao, who highlighted the strengthened state of the Indian financial system and the country's economic resilience amidst global challenges. 

Additionally, around 46 million income tax returns have been filed so far, with the tax department collaborating with technology vendors to handle the high volume of submissions as the July 31 deadline approaches. However, sentiment might be dampened by ongoing foreign fund outflows, with foreign institutional investors (FIIs) selling equities worth Rs 2,605 crore on July 25. Traders should note that the Reserve Bank of India (RBI) has proposed stricter norms for the liquidity coverage ratio (LCR) due to the increasing number of mobile and internet banking users. 

In the marine sector, stocks may react to the Marine Products Export Development Authority’s (MPEDA) statement that budget announcements, such as customs duties rationalization and financing facilities, will boost India's aquaculture and seafood exports, particularly focusing on shrimp production. Investors will also be closely monitoring earnings reports from companies like IndusInd Bank, Power Grid Corporation, Shriram Finance, Cipla, InterGlobe Aviation, Bandhan Bank, Aarti Drugs, and Amber Enterprises India. Meanwhile, shares of Sanstar, a leading Indian maize-based specialty products manufacturer, will debut on the NSE and BSE today.

### US and Asian Markets Update

In the US, markets mostly ended in the red on Thursday despite strong Q2 GDP data, which was overshadowed by tech sector weaknesses. In Asia, markets are trading mostly higher on Friday ahead of next week's Bank of Japan policy meeting.

### Domestic Market Recap

Back home, Indian equity benchmarks witnessed a sharp recovery on Thursday after a significant morning sell-off, ending flat with a negative bias due to the monthly F&O expiry for the July series. Both indices experienced heavy losses at the start of trading, influenced by global market sell-offs. Market sentiment was further impacted by significant foreign fund outflows following a hike in securities transaction tax and short-term capital gains tax. 

A private report indicated that foreign investors sold nearly $1 billion worth of Indian equities in the two days following the government's tax increases on derivatives trades and equity investment capital gains. However, the markets regained most of their losses by late afternoon, supported by Revenue Secretary Sanjay Malhotra's comments on the tax reliefs for the middle class announced in the Union Budget, which include Rs 17,500 savings and an increased rebate limit to Rs 7 lakh in the new tax regime.

Additional support came from global credit rating agencies' positive reception of the FY25 Budget, praising the government's commitment to deficit reduction. The Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal noted that about 66% of taxpayers have opted for the new income tax return (ITR) regime, with the government focusing on simplifying tax processes.

Ultimately, the BSE Sensex fell by 109.08 points, or 0.14%, to 80,039.80, and the CNX Nifty decreased by 7.40 points, or 0.03%, to 24,406.10.