Indian stock markets wrapped up Thursday's session with modest gains after reaching record highs, following the U.S. Federal Reserve's 50 basis points rate cut and hints at further reductions. Today, domestic markets are expected to open on a positive note, supported by overnight gains on Wall Street. Market sentiment will also be boosted by an S&P Global report stating that India is on track to become the third-largest economy and transition into the upper-middle-income group by 2030-31, with an estimated annual growth rate of 6.7% this fiscal year. India’s GDP for FY2024 surged by 8.2%, surpassing earlier government projections of 7.3%. Continued reforms will be essential to sustain this momentum.

Traders will note Economic Affairs Secretary Ajay Seth’s comment that the U.S. Fed rate cut will likely have minimal impact on foreign inflows into India. Meanwhile, Petroleum Minister Hardeep Singh Puri has emphasized that the U.S. is now India’s sixth-largest energy trade partner, with the potential for bilateral trade to grow beyond $500 billion from the current $200 billion. 

The ready-made garment (RMG) sector will be in focus as the commerce ministry reported a 12% rise in exports for August, reaching $1.26 billion, despite global challenges such as high logistics costs. Between April and August 2024, RMG exports grew by 7.12%, totaling $6.39 billion. 

Shipping sector stocks may react to the government's recent measures aimed at supporting exporters and importers, which include reducing certain port charges and adding five more second-hand container vessels for the Shipping Corporation of India (SCI). 

Telecom stocks will draw attention after the Supreme Court rejected petitions from telecom firms regarding adjusted gross revenue (AGR) liabilities, maintaining financial pressure on companies like Vodafone. 

Key data to watch today include the release of deposit growth, foreign exchange reserves, and bank loan growth for September. Additionally, several IPOs—BikeWo GreenTech, SD Retail, Phoenix Overseas, and Avi Ansh Textile—will open for subscription, while Paramount Specialty Forgings’ IPO will close today.

In the U.S., markets closed higher on Thursday following the Fed’s 50 bps rate cut and signals of more cuts to come. Asian markets are showing mixed results on Friday, with investors awaiting Japan’s monetary policy announcement.

Back in India, the Sensex rose by 236.57 points to close at 83,184.80, and the Nifty gained 38.25 points, ending at 25,415.80 on Thursday. Despite profit-booking in some heavyweight stocks, markets were supported by gains in Consumer Durables, Realty, and Banking sectors. Additionally, the Finance Minister noted that India is leading in global economic growth and is expected to maintain its trajectory.