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Indian markets rose 1.2 percent each to scale two-week closing highs on Wednesday led by broad-based gains. Financial, IT and oil & gas stocks were the biggest contributors to the rise in headline indices. Today, markets are likely to make cautious start amid mixed Asian cues. Rising crude oil prices and geopolitical tensions may weigh on the market sentiment. There will be come cautiousness as domestic rating agency CRISIL estimated FY23 real GDP growth at 7.8 per cent as compared with the 8.5 per cent projected in the Economic Survey. However, traders may be taking encouragement as Commerce and Industry Minister Piyush Goyal said India is on track to achieve the $400-billion export target in the current fiscal and is negotiating trade agreements with countries like the UAE, the EU and Canada. Sentiments may get a boost as asserting that the Union Budget lays the foundation for the country’s long-term growth in the next 25 years, NITI Aayog Vice-Chairman Rajiv Kumar said the government is taking all possible measures to ignite private investments, which will be the best bet to pull the economy out of the shadows of the coronavirus pandemic. Some support may come as data by independent think-tank Centre for Monitoring Indian Economy (CMIE) showing that India’s unemployment rate witnessed a sharp decline to 6.57 per cent in January, the lowest since March 2021, as the country gradually recovers with easing of restrictions following a decline in Omicron cases. Traders may take note of Economic Affairs Secretary Ajay Seth’s statement that the Budget proposals seek to stimulate the economy by stepping up public investments, which will create demand for industrial inputs like cement, steel and capital goods, and generate jobs. Meanwhile, Total foreign direct investment (FDI) inflows during April-November 2021 stood at $54.10 billion. Minister of State for Commerce and Industry Som Parkash said the government has put in place a liberal and transparent policy for FDI, wherein most of the sectors are open under the automatic route.

The US markets ended higher on Wednesday extending gains for a fourth straight day, boosted by upbeat earnings from Alphabet and Advanced Micro Devices. Asian markets are trading mixed on Thursday amid persisting concerns about global growth and geopolitical tensions.

Back home, Indian equity benchmarks extended gains to the third straight session on Wednesday led by gains in financial, banking and healthcare stocks and positive sentiments from global markets. Markets made gap-up opening and stayed in green for whole day, as traders took encouragement as Chief Economic Adviser V Anantha Nageswaran expressed hope that India would become a $5 trillion economy by FY26 or the next year on the back of 8-9 per cent sustained growth. He added gross domestic product (GDP) in dollar terms has already crossed $3 trillion. Some support also came in as provisional data of the commerce ministry showed that the country's exports rose by 23.69 per cent to $34.06 billion in January on healthy performance by engineering, petroleum and gems and jewellery segments even as trade deficit widened to $17.94 billion during the month. Traders took note of report that Commerce and industry minister Piyush Goyal said his ministry is in talks with the finance ministry to allow firms in the special economic zones (SEZs) to sell goods in the domestic market by paying just an equalisation levy.  The key indices were seen extending gains in noon trade as continued buying across all sectors. Sentiments remained up-beat with IT industry body Nasscom stating that the Union Budget 2022 sets the tone for India's 'techade' and establishing the country as a global hub in terms of technology innovation. Traders remained positive, as the USA India Chamber of Commerce has said that in the midst of third wave of COVID-19, Finance Minister Nirmala Sitharaman has come up with an impactful budget which is balanced, fiscally prudent and growth-oriented. Further, support also came in as Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar, welcoming the Budget's focus on the agriculture sector, has said that it is the budget for the villages, poor people, farmers, women and youth. The minister said the budget of the Ministry of Agriculture and Farmers Welfare has been increased continuously in both the tenures of the Government, this time also it has been increased to Rs.1.32 lakh crore from Rs.1.23 lakh crore last year. Finally, the BSE Sensex rose 695.76 points or 1.18% to 59,558.33 and the CNX Nifty was up by 203.15 points or 1.16% to 17,780.00.

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