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Indian markets ended higher on Tuesday led by strong gains in metals and banking stocks amid positive global cues. Today, markets are likely to open higher tracking positive global cues. Positive comments by the World Health Organisation (WHO) chief scientist on the Covid-19 situation in India may result in a relief rally on the bourses. He said coronavirus in India may be entering some kind of stage of endemicity where there is low or moderate level of transmission going on. Market participants are likely to continue to take support with SBI research report Ecowrap stating that the country’s gross domestic product (GDP) is expected to grow at around 18.5 per cent with an upward bias in the first quarter of the current financial year. Higher growth in the second quarter of 2022, or Q1 FY22 is mainly on account of a low base. Some support will come as Minister of State of Commerce and Industry Anupriya Patel said India is likely to record exports worth $46 billion to the ASEAN region. She noted that as one of the largest destinations for Indian exports, the Association of South East Asian Nations will be an important region for India in meeting the global export target of $400 billion in financial year 2021-22. Additionally, asserting that people will get some relief in the coming months, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said the government is very sensitive to the issue of rise in fuel prices. However, there may be come cautiousness as India recorded a massive spike of 51,016 new Covid-19 cases and 737 deaths in the past 24 hours, taking its tally to 32,511,370 and the death toll to 435,788. Meanwhile, Finance Secretary T V Somanathan said the government is considering to introduce insurance bonds as an alternative to bank guarantees. Besides, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts will be included in the Nifty indices from September 30. Oil & gas sector stocks will be in focus as India's crude oil production continued its declining trend, falling by over 3 per cent in July as state-owned ONGC produced less than the target. There will be some reaction in agriculture industry related stocks as the government relaxed norms for import of 12 lakh tonne of genetically modified crushed and de-oiled soya cake, used as livestock feed.

The US markets ended higher on Tuesday as positive U. vaccination news lifted sentiment, and as investors grew less worried the Federal Reserve was set to announce a timetable for tapering stimulus measures. Asian markets are trading mostly in green on Wednesday as optimism continued to drive US stocks, with the S&P 500 and Nasdaq reaching record highs overnight.

Back home, Indian equity benchmarks traded in green terrain throughout the session and ended at record closing highs on Tuesday paced by gains in Metal, Basic Materials and Oil & Gas stocks amid positive global cues. Sentiments got a boost as Commerce and Industry Minister Piyush Goyal said foreign direct investments into the country is on the rise, jumping to $12.1 billion in May this year. He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22. Some optimism also came with Icra Ratings’ report stated that with the easing of COVID-19-related restrictions by the states, the roots of the economic recovery deepened in July 2021. The report said the unlocking in the country has manifested itself in improving performance across various high frequency industrial and service sector indicators, mobility and toll collections in July 2021. Sentiments remained positive as Finance Minister Nirmala Sitharaman announced a Rs 6 lakh crore National Monetisation Pipeline (NMP) that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways. She also said the asset monetisation does not involve selling of land and it is about monetising brownfield assets. Projects have been identified across sectors, with roads, railways and power being the top segments. Benchmarks extended their upward rally in late afternoon session, after SBI research report Ecowrap has showed that country's gross domestic product (GDP) is expected to grow at around 18.5 percent with an upward bias in the first quarter of the current financial year. Higher growth in the second quarter of 2022, or Q1 FY22 is mainly on account of a low base. Some support also came with IT industry body Nasscom’s statement that India has the potential to become the world's second-largest cloud talent hub with the combined effort of government bodies, education and skilling organisations and technology providers. Traders overlooked the government’s statement that summer-sown crop planting in India has been lagging as the country received below-normal rainfall, raising concerns about food grain production in Asia's third biggest economy. Also, a private report stated that India’s volatile and below-normal monsoon rainfall may create challenges for inflation and economic growth in rural areas over the medium-term. Finally, the BSE Sensex rose 403.19 points or 0.73% to 55,958.98, while the CNX Nifty was up by 128.15 points or 0.78% to 16,624.60.

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