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Indian markets extended its winning run for the sixth-straight day on Monday on the back of aggressive buying in metal and select IT and financial shares. Today, the markets are likely to continue Bull Run with positive start tracking gains in global markets. Traders will be taking encouragement as Union Minister Shobha Karandlaje said the Centre has infused Rs 1,31,000 crore to boost agriculture and allied sectors with special emphasis on becoming an export-oriented economy as India has tremendous potential to satiate global demand. Some support will come as preliminary data of the commerce ministry showed that the country's exports rose by 40.5 per cent to $15.13 billion during October 1-14 on account of healthy performance by key sectors such as petroleum products, engineering and chemicals. Additionally, amid a growing perception, partly caused by a view expressed by some senior government functionaries against another instalment of a large demand-side fiscal stimulus in the current fiscal, Finance Minister Nirmala Sitharaman indicated that the government was indeed open to accelerating the economic recovery through such largesse, if required. Meanwhile, Reserve Bank of India (RBI) remained a net buyer of the US currency in August after it net purchased $3.747 billion from the spot market. According to the monthly RBI bulletin for October 2021, in the reporting month, RBI had purchased $10.887 billion and sold $7.14 billion in the spot market. Aviation industry stocks will be in focus as the country's aviation regulator -- the Directorate General of Civil Aviation (DGCA) said around 70.66 lakh domestic passengers travelled by air in the month of September, 5.44 per cent higher than 67.01 lakh who travelled in August. There will be some reaction in solvent extraction industry stocks as industry body SEA said export of oilmeal, used as animal feed, declined 36 per cent year-on-year to 1.83 lakh tonne in September on account of the domestic shortage of the oilmeal products. There will be some earnings announcements too to keep the markets buzzing.

The US markets ended mostly higher on Monday with the biggest boosts from the highest-profile technology and communications companies, though a relentless surge in oil prices fuelled concerns about elevated inflation. Asian markets are trading in green on Tuesday supported by a tech-driven Wall Street rally, and a rebound in Chinese markets a day after weak data heightened investor concerns about the world’s second-largest economy.

Back home, Continuing with the momentum seen in the past week, Indian equity benchmarks settled at fresh record closing highs on Monday, on the back of strength in select metal, utilities and power stocks. Markets made positive start and stayed in green for whole day, as sentiments got boost with Minister of State for External Affairs V Muraleedharan’s statement that the Indian economy is bouncing back strongly, domestic consumption is increasing and industrial production is at pre-COVID level, he also emphasized that the reforms implemented by the government has provided fillip to the business ecosystem in the country. Additional optimism also came as Union Finance Minister Nirmala Sitharaman stating that the Indian government remains committed to bring the economy on the path of fiscal consolidation in the near-to-medium term, setting the target to reduce fiscal deficit to 4.5 per cent by 2025-26. Markets continued to trade firm in afternoon session, taking support from the International Monetary Fund’s (IMF) report in which it has described the Indian government's response to the COVID-19 situation as 'swift and substantial', adding that the country continued with labour reforms and privatization despite the pandemic. Some support also came after RBI data stated that the country's foreign exchange reserves rose by $2.039 billion to 639.516 billion in the week ended October, 8. Market participants paid no heed towards report stated that the sharp economic recovery and rising demand post the second wave of Covid coupled with a spike in global oil prices may pose a challenge for the government in FY22 to maintain fiscal discipline amid good growth in tax revenue.  Traders overlooked data released by the government showed India's merchandise trade deficit widened to a record $22.6 billion in September, the highest in at least about 14 years, as crude oil and gold imports surged.  Finally, the BSE Sensex rose 459.64 points or 0.75% to 61,765.59 and the CNX Nifty was up by 138.50 points or 0.76% to 18,477.05.

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