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Indian equity benchmarks rose for the second day in a row and ended with gains of over a percent each on Wednesday, as investors awaited the outcome of the RBI's policy review due the next day. Gains across most sectors pushed the headline indices higher, with auto, consumer durables, metal and banking stocks being the biggest movers. Key gauges made optimistic start and stayed in green for whole day, as sentiments got a boost as the preliminary data of the commerce ministry showed that India’s exports grew by 28.51 per cent to $8.67 billion during February 1-7 on account of healthy growth in sectors such as petroleum, engineering and gems and jewellery. The exports during the first week of this month rose by about 31 per cent. According to the data, $8.67 billion per week is almost 20 per cent more than the weekly run rate of $7 billion clocked this year. Some support also came as NITI Aayog Vice Chairman Rajiv Kumar said the rise in international fuel and commodity prices may not continue going forward.

Indian bourses extended gains in late afternoon deals, as sentiments remained up-beat with Revenue Secretary Tarun Bajaj’s statement that the government is open to 'some tinkering' in the varied rates and holding period for computation of capital gains tax on shares, debt and immovable property, in a bid to make it simple. Some support also came with Crisil Research report where it said Union Budget capex not as high as it sounds. It, however, was quick to add that considering that governments usually tend to cut capex during a crisis, the government has maintained its focus on growth-spurring initiatives amid the pandemic. Adding to the optimism, Telecom Minister Ashwini Vaishnaw has made an aggressive pitch for adoption of products that are designed and made in India, citing better quality and costs, as he affirmed the government's firm resolve to improving ease of doing business and reducing regulations in the sector. 

On the global front, European markets were trading higher with a strong session on Wall Street overnight, encouraging earnings reports and upbeat exports data from Germany helping underpin investor sentiment. Data released by Destatis revealed that German exports increased unexpectedly in December. Exports were up 0.9 percent month-on-month in December. Although this was weaker than the 1.8 percent increase seen in November, the monthly growth confounded the expected fall of 0.2 percent. On a yearly basis, exports advanced 15.6 percent. Asian markets ended higher on Wednesday after a strong session on Wall Street overnight. Investors waited for U.S. inflation data due Thursday that might influence the pace of Fed rates lift-off.  Back home, on the sectoral front, insurance industry stocks were in focus as data from Irdai showed that the new business premium income of all the life insurance companies grew 2.65 per cent to Rs 21,957 crore in January 2022. The 24 life insurance companies had collected Rs 21,389.70 crore as the first year or the new business premium in January 2021. Stocks related to Fertiliser sector also were in action with Fertiliser Minister Mansukh Mandaviya stated that there is a ‘comfortable’ supply of DAP fertiliser for the ongoing rabi season, however the Centre has asked companies to manufacture additional quantity of DAP at no-profit-no- loss basis to meet the requirement.

Finally, the BSE Sensex rose 657.39 points or 1.14% to 58,465.97 and the CNX Nifty was up by 197.05 points or 1.14% to 17,463.80.  

The BSE Sensex touched high and low of 58,507.61 and 58,105.18, respectively. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.23%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were Auto up by 2.18%, Consumer Durables up by 1.81%, Metal up by 1.58%, Bankex up by 1.32% and Consumer Discretionary up by 1.30%, while Oil & Gas down by 0.37% was the lone losing index on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.14%, Indusind Bank up by 3.02%, HDFC Bank up by 2.50%, Bajaj Finserv up by 1.77% and Titan Company up by 1.72%. On the flip side, Sun Pharma down by 0.72%, ITC down by 0.50% and Power Grid Corporation down by 0.38% were the top losers.

Meanwhile, Telecom Minister Ashwini Vaishnaw has made an aggressive pitch for adoption of products that are designed and made in India, citing better quality and costs, as he affirmed the government's firm resolve to improving ease of doing business and reducing regulations in the sector. He also urged global players to consider developing more partnerships with Indian entrepreneurs, companies, manufacturers, startups and developers.

Listing out India's rapid strides in ushering in new-age technologies, Vaishnaw said the 5G network is in its final stages of development. He stated that the country has also indigenously developed 4G core network and radio network, even as it is participating in development of 6G standards. He said ‘from the government's side, we are committed to reduce regulation, to make sure that the regulation is in tune with times, that the industry feels committed towards investments...the industry finds interacting with the government as a very seamless experience’.

The minister said India has emerged as a major hub for electronics manufacturing. He noted that electronics manufacturing in the country is pegged at about $75 billion and it is growing at more than 20 per cent CAGR. He said 'now we have launched a major semiconductor programme, a very comprehensive one...right from silicon chip to compound semiconductors and design-led manufacturing, to creating a series of entrepreneurs and also finally, to develop 85,000 semiconductor engineers’.

The CNX Nifty traded in a range of 17,477.15 and 17,339.00 and there was 42 stocks advancing against 8 stocks declining on the index.  

The top gainers on Nifty were Coal India up by 5.63%, Maruti Suzuki up by 4.20%, Indian Oil Corporation up by 3.32%, Shree Cement up by 3.30% and Hindalco up by 3.08%. On the flip side, ONGC down by 1.50%, BPCL down by 0.65%, ITC down by 0.48% and SBI Life Insurance down by 0.19% and Tata Steel down by 0.13% were the top losers.

European markets were trading higher;  UK’s FTSE 100 increased 44.92 points or 0.59% to 7,611.99, France’s CAC increased 95.80 points or 1.36% to 7,124.21 and Germany’s DAX increased 215.69 points or 1.42% to 15,458.07.

Asian markets ended higher on Wednesday tracking strong gains in Wall Street stocks overnight ahead of US inflation data due Thursday that might influence the pace of Fed tightening. Stabilizing oil prices after the recent surge also uplifted market sentiments. Japanese shares settled higher, led by gains in the paper & pulp, railway & bus and real estate sectors, as investors hunted for companies that reported strong results as the earnings season nears its peak. Chinese shares gained despite investors’ worries over the impact of US sanctions. Moreover, Seoul shares improved amid hopes of strong corporate earnings in the fourth quarter.