Indian markets concluded Thursday's trading flat after a volatile session, as the absence of significant domestic or global triggers kept investors on edge. Today, markets are expected to begin cautiously amid mixed global signals and low holiday-season trading volumes.

Optimism arises from the Finance Ministry's latest review, projecting India's economy to grow around 6.5% in FY25. The Ministry also highlighted a positive outlook for October-December, driven by resilient rural demand and improving urban consumption. Additionally, India's market capitalization rose by 18.4% in 2024 to $5.18 trillion, making it the third fastest-growing market globally.

However, some concerns persist. Foreign institutional investors (FIIs) offloaded ₹2,376.67 crore worth of equities on December 26. Additionally, the rupee’s depreciation by 2.34% against the US dollar this year is expected to inflate the country's import bill by $15 billion, as per the Global Trade Research Initiative (GTRI).

Sector-wise, the hotel and restaurant industry is set for double-digit revenue growth in 2024-25, according to Crisil Ratings. Banking stocks remain in focus as the RBI reports a sixth consecutive year of rising net profits and falling bad loans for commercial banks. In the healthcare sector, projections suggest growth to $320 billion by 2028, with the pharmaceutical and biotechnology sectors targeting significant milestones by 2030. NBFCs, meanwhile, are urged by the RBI to diversify funding sources for risk mitigation.

In primary markets, IPOs including Mamata Machinery, DAM Capital Advisors, Sanathan Textiles, Concord Enviro Systems, and Transrail Lighting are set to debut on the bourses.

Globally, U.S. markets ended mostly in the red on Thursday in post-Christmas trading, while Asian markets traded mixed, with Japan leading gains due to yen weakness.

On the domestic front, Indian equity benchmarks closed flat on Thursday amidst subdued trading volumes due to year-end holidays. Initial optimism from a positive GDP growth outlook was overshadowed by concerns over slowed foreign direct investment and persistent FII outflows. The BSE Sensex dipped slightly to 78,472.48, while the CNX Nifty edged up by 22.55 points to 23,750.20.