Opening bell: Indices start out flat; Nifty opens above 16,600 and Sensex gains 105 points

Early in the trading session, the benchmark indices saw modest improvements.

The majority of sectors saw increases on Friday, driving up the Indian equity benchmarks BSE Sensex and NSE Nifty50, with the biggest contribution coming from the financial, oil & gas, auto, and FMCG industries. All sectoral indices on the NSE traded in the green, with the exception of the Nifty IT index.

The S&P BSE Sensex, the barometer index, was up 293.35 points, or 0.53%, to 55,975.30 at 09:26 IST. To reach 16,700.45, the Nifty 50 index rose 95.20 points, or 0.57%. The S&P BSE Mid-Cap index increased by 0.51% and the S&P BSE Small-Cap index increased by 0.59% in the overall market. Market breadth was strong as 1,838 shares increased and 649 shares decreased on the BSE and 114 shares in total remained unchanged. On July 21, foreign portfolio investors (FPIs) purchased shares worth Rs 1,799.32 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 312.29 crore.

A regulatory framework for the online bond marketplaces for trading listed debt instruments was recommended by the capital markets regulator Sebi on Thursday.

According to a consultation paper, the idea calls for bond platforms to either be operated by brokers registered with Sebi or register as stock brokers (debt segment) with Sebi. As the platforms would be offered through intermediaries subject to Sebi regulation, this will also increase investor confidence, especially among non-institutional investors. These organisations will also be subject to the stock-broker regulations, which will control their code of conduct and other areas of their operations and risk management.

After the European Central Bank (ECB) raised rates for the first time in more than a decade and bets on the extent of US rate hikes receded, Asian stock markets were on track for their best week in months and the dollar remained off recent record highs. As investors analyse Japan's inflation figures on Friday, Asian stocks are trading in a mixed bag. Prices in Japan increased 2.2% in June compared to a year earlier, according to official statistics released on Friday. It came after gains of 2.1% in May and April.