Indian stock markets are expected to open on a positive note today, driven by signs of a potential interest rate cut cycle by the US Federal Reserve in September, as indicated by Jerome Powell's recent speech. On Friday, Indian markets ended flat amidst ongoing tensions in the Middle East, despite intensified US efforts to broker a ceasefire between Israel and Hamas. Meanwhile, India's engineering goods exports showcased resilience with a 3.6% year-on-year growth in July, as reported by the Engineering Export Promotion Council (EEPC). Additionally, India's foreign exchange reserves saw a rise of $4.54 billion, reaching $674.66 billion in the week ending August 16, reflecting an increase in foreign currency assets.

However, caution may linger due to an uptick in the unemployment rate among women in urban areas, which rose to 9% in the April-June quarter of FY25, according to the latest Periodic Labour Force Survey (PLFS). The Indian government has also adjusted drawback rates on gold and silver jewellery exports following import duty cuts on these metals in the latest budget. In another development, Indian telecom companies are aiming for a share in global 6G patents, aligning research efforts with national requirements.

On the global front, US markets closed higher on Friday after Powell’s speech at the Jackson Hole Economic Symposium, while Asian markets traded mixed on Monday ahead of inflation data, which could set the stage for rate cuts in the US and Europe.

Back in India, despite volatility and concerns over slowing GDP growth, positive market sentiment was buoyed by foreign institutional investments and the RBI’s optimistic outlook on domestic growth, driven by strong investment and consumption trends. The BSE Sensex gained 33.02 points to close at 81,086.21, while the CNX Nifty edged up 11.65 points to end at 24,823.15.