Indian stock markets continued their winning streak for the fourth session on Wednesday, closing in positive territory despite fluctuations. Investors remained cautious as they awaited the Reserve Bank of India’s (RBI) interest rate decision. On Thursday, markets are expected to open cautiously, influenced by mixed cues from Asian markets and the weekly Nifty options expiry. The upcoming RBI policy announcement and global concerns could impact sentiment.

Concerns were raised as the World Bank’s International Debt Report highlighted a rise in India’s external debt by $31 billion, reaching $646.79 billion in 2023. Interest payments also surged to $22.54 billion from $15.08 billion last year. However, optimism emerged from the OECD’s forecast that India would maintain near 7% growth over the next two years, driven by strong investments and agricultural recovery.

Foreign institutional investors (FIIs) provided a boost by purchasing equities worth ₹1,797 crore on December 4. Banking stocks are expected to see movement after RBI data showed a rise in net liquidity surplus to ₹1 trillion, attributed to government spending. Telecom stocks may gain attention as the Department of Telecommunications pushes for expanding the PLI scheme to boost local production and exports of 4G and 5G equipment. Coal stocks will also be in focus as the government launches the 11th round of commercial coal mine auctions, offering 27 blocks across various states.

In global markets, U.S. stocks closed higher on Wednesday, driven by tech gains and positive comments from Federal Reserve Chairman Jerome Powell. Asian markets traded mixed on Thursday.

On Wednesday, Indian equity benchmarks ended slightly higher, driven by foreign investments and positive global cues. However, caution prevailed as the GDP growth slowed to 5.4% in the July-September quarter, significantly below RBI’s estimate of 7%. Mid-session losses were triggered by Commerce Minister Piyush Goyal’s remarks on the impact of extended shipping routes on trade.

Markets recovered later, supported by robust performance in the services sector. The HSBC India Services PMI remained strong at 58.4 in November, indicating steady demand and record hiring. Meanwhile, the Lok Sabha passed the Banking Laws (Amendment) Bill, 2024, allowing up to four nominees for bank accounts and updating rules for directorship eligibility.

The BSE Sensex rose 110.58 points to close at 80,956.33, while the Nifty gained 10.30 points to end at 24,467.45.