Indian markets finished flat on Thursday, even as global markets saw substantial drops due to a shift from tech stocks to more economically sensitive sectors. Today, Indian markets are expected to open flat to positive, buoyed by gains in Asian markets. The Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao's statement that the Indian financial system is stronger than before and the country's economy remains robust despite global challenges will offer some support. Additionally, 4.6 crore income tax returns have been filed so far, and the income tax department is coordinating with tech vendors to handle the expected surge in filings as the July 31 deadline approaches. However, sentiments may be dampened by continued foreign fund outflows, with foreign institutional investors (FIIs) selling equities worth Rs 2,605 crore on July 25. Traders should also note that the RBI has proposed stricter liquidity coverage ratio (LCR) norms for retail deposits due to the increasing number of mobile and internet banking users. 

Stocks in the marine sector might see some action as the Marine Products Export Development Authority (MPEDA) has highlighted that budget measures such as rationalizing customs duties and providing financing facilities will enhance India's aquaculture and seafood exports. The budget also includes strategic initiatives to improve the competitiveness of marine products, particularly shrimp production and export. Investors will continue to monitor earnings reports, with companies like IndusInd Bank, Power Grid Corporation, Shriram Finance, Cipla, InterGlobe Aviation, Bandhan Bank, Aarti Drugs, and Amber Enterprises India set to announce their quarterly results today. Additionally, shares of Sanstar, a leading Indian manufacturer of maize-based specialty products, will debut on the NSE and BSE today.

In the US, markets ended mostly in the red on Thursday despite strong Q2 GDP data, as tech stocks continued to struggle. In Asia, markets are trading mostly higher on Friday ahead of the Bank of Japan policy meeting next week.

Back home, Indian equity benchmarks experienced a significant sell-off in the morning session but recovered steadily to end flat with a negative bias on Thursday, amidst the monthly F&O expiry for the July series. Both indices experienced heavy losses at the opening and remained in the red for most of the day, influenced by global market sell-offs. Heavy foreign fund outflows following an increase in securities transaction tax and short-term capital gains tax also negatively impacted market sentiment. Caution prevailed among traders following a private report indicating that foreign investors sold nearly $1 billion worth of Indian equities in the two days since the government raised taxes on derivatives trades and capital gains from equity investments in its annual budget. However, markets recovered most of the lost ground in the late afternoon, supported by Revenue Secretary Sanjay Malhotra's statement that the tax slabs adjustment announced in the Union Budget, amounting to Rs 17,500 in savings for the middle class, along with an increased rebate limit to Rs 7 lakh in the new tax regime, provides substantial relief over two years. Additional support came from reports that global credit rating agencies have positively reviewed the FY25 Budget, appreciating the government's commitment to deficit reduction, with Moody's Ratings noting the Budget's credit-positive aspects. Meanwhile, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal mentioned that around 66% of the over 40 million taxpayers have opted for the new income tax return (ITR) filing regime this season. He emphasized the government's and the direct taxes administration's focus on simplifying tax processes, including ITR filing and other interactions with the Income Tax Department. 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.