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Indian equity benchmarks extended gains to a second straight day on Tuesday, amid broad-based buying across the sectors and positive global cues. Markets staged a gap up opening, as traders got encouragement with a private report stated that the economy is likely to register a 9.5 per cent growth this fiscal over 7.3 per cent contraction last year, as the ongoing recovery is faster and more credible than earlier foreseen. Sentiments remained up-beat with Engineering Export Promotion Council (EEPC) chairman Mahesh Desai stating that exports of engineering goods have crossed $9 billion in September 2021, while 22 out of 25 top export destinations such as China, the UK, and UAE have recorded positive growth. It said share of engineering goods in overall merchandise exports stood at 26.65 percent in September. Some support also came with report indicating that hiring activities in the country are rising in the current quarter, reflecting improvement in the job market and signs of resilience.

However benchmarks trimmed most of gains in afternoon deals, as traders got anxious with report that Foreign Institutional Investors (FII) have been net sellers of domestic stocks for 5 consecutive days now. FIIs sold Rs 2,459 crore worth of equities on Monday. Domestic Institutional Investors, however, were net buyers of stocks worth Rs 2,390 crore. Though, steady buying interest in realty and metal shares lifted the benchmarks to close higher. Adding to the optimism, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman held review meetings with the Ministry of Civil Aviation and Department of Telecommunications (DoT) with an aim to give a fillip to capital expenditure (CAPEX) and infrastructure progress in the country. Traders also took a note of report where Power Minister R K Singh has exuded confidence that there will be no power shortage in the country amid the ongoing low coal stocks at power plants and stressed on timely payments by distribution companies to the plants for electricity supplied to them.

On the global front, Asian Markets ended mostly higher on Tuesday, following the broadly positive cues from Wall Street, with upbeat earnings news continuing to contribute to the recent upward trend, as most companies have reported better than expected results. However, the mood also remained cautious amid coronavirus situation in the region. European markets were trading higher as strong earnings updates from the likes of UBS and Reckitt Benckiser helped investors shrug off fresh worries about China's property sector. Back home, on the sectoral front, telecom stocks were in focus as the government amended the telecom licence norms to reduce the tax burden on telecom operators by exempting all non-telecom revenues, income from dividends, interest, property sale and rent, among others, for calculation of levies like licence fees and spectrum usage charges. Stocks related to textile sector too were in action as Union Minister Piyush Goyal has called for developing 100 Indian textile machinery champions recognized across the world and reducing import dependence of the textile machinery in India by concerted effort between the textile engineering industry and the government together.

Finally, the BSE Sensex rose 383.21 points or 0.63% to 61,350.26 and the CNX Nifty was up by 143.00 points or 0.79% to 18,268.40.        

The BSE Sensex touched high and low of 61,497.71 and 60,791.29, respectively and there were 20 stocks advancing against 10 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.75%, while Small cap index was up by 2.20%.

The top gaining sectoral indices on the BSE were Realty up by 3.40%, Metal up by 2.89%, Consumer Durables up by 2.80%, Basic Materials up by 2.54% and Consumer Discretionary up by 2.02%, while there were no losing sectoral index on the BSE.

The top gainers on the Sensex were Tata Steel up by 3.92%, Titan Company up by 3.20%, Nestle up by 2.91%, Bajaj Finance up by 2.68% and Tech Mahindra up by 2.53%. On the flip side, Indusind Bank down by 1.92%, ICICI Bank down by 1.43%, Power Grid Corporation down by 1.30%, Hindustan Unilever down by 0.80% and NTPC down by 0.45% were the top losers.

Meanwhile, Engineering Export Promotion Council (EEPC) chairman Mahesh Desai has said that exports of engineering goods have crossed $9 billion in September 2021, while 22 out of 25 top export destinations such as China, the UK, and UAE have recorded positive growth. It said share of engineering goods in overall merchandise exports stood at 26.65 percent in September.

EEPC chairman has stated that India's engineering cumulative engineering exports increased from $32.4 billion in April to September in 2020 to $52.3 billion during the same period this year. On an annualized basis, this would translate to $105 billion in 2021-22. In the first six months, 49 percent of the target has been achieved. Among other countries which recorded positive growth included Germany, Turkey, Italy, the UK, Mexico, Vietnam, and Singapore.

Welcoming the move to fast-track FTAs with as many as six countries and trading blocs, Desai said the government should take lessons from earlier such agreements. He said the FTAs signed earlier led to increased imports for some items in ferrous and non-ferrous sectors from countries like Korea and Japan. Hence, he said there is a need to take a cautious stance while signing new FTAs.

The CNX Nifty traded in a range of 18,310.45 and 18,099.30 and there were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.90%, Tata Steel up by 4.15%, SBI Life Insurance up by 3.83%, Titan Company up by 3.73% and Nestle up by 3.31%. On the flip side, Indusind Bank down by 1.88%, ICICI Bank down by 1.18%, Power Grid Corporation down by 0.75%, Dr. Reddy's Laboratories down by 0.31% and NTPC down by 0.28% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 48.78 points or 0.68% to 7,271.60, France’s CAC rose 41.64 points or 0.62% to 6,754.51 and Germany’s DAX was up by 154.66 points or 0.99% to 15,753.89.

Asian markets ended mostly higher on Tuesday tracking gains in Wall Street stocks overnight as US House Speaker Nancy Pelosi expressed confidence that congressional democrats are near a deal on a large spending package, while Tesla topped $1 trillion in market value. Seoul shares advanced amid expectations of strong corporate earnings. Japanese shares gained ahead of lower house election. The poll results suggesting that Prime Minister Fumio Kishida's ruling Liberal Democratic Party is likely to keep substantially more than half the seats in parliament in this weekend's general election. However, Chinese shares ended lower as sustained worries over a planned pilot real-estate tax scheme dented sentiment. Chinese shares were also dragged down by selling pressure from property shares after the Chinese property developer Modern Land missed a bond payment.

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