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Indian markets closed lower Tuesday as media, financials, and metal stocks dragged the indices. Markets were shut Wednesday on account of Bakri Id. Today, domestic indices looks to resume trade in green after a one-day gap, thanks to a rally in US equities over the last two days. Traders may take note of report that in order to bring more discipline, transparency, and accountability into the corporate insolvency process, resolution professionals (RPs) will be required to inform the adjudicating authority about avoidance transactions of a corporate debtor, according to the amended Insolvency and Bankruptcy Board of India (IBBI) Regulations, 2016. However, there may be some concern as increasing commodity prices forced the government’s crude oil import bill to swell by a massive 190.6% on-year basis in the first quarter to reach $24.7 billion. India’s crude oil import value during the quarter stood at 51 million tonne, up 14.7% from the previous year. There may be some cautiousness as the health ministry said India reported its highest death toll in a month on Wednesday--3,998--after Maharashtra reconciled its death count with 3,509 previously unreported fatalities. Meanwhile, the government has decided not to impose anti-dumping duty on imports of a certain type of fibre board, used to make furniture and cabinets, from Vietnam, Malaysia, Thailand, and Indonesia, as per an office memorandum of the Department of Revenue. Real estate industry stocks will be in focus as Durga Shanker Mishra, Secretary, Ministry of Housing and Urban Affairs said the size of real estate sector is expected reach $1 trillion by 2030 from $200 billion at present. There will be some reaction  in auto industry stocks with a private report that India's automotive electronics market is expected to cross $18 billion by 2027 with a compound annual growth rate (CAGR) of 17 per cent, driven by rising income levels and increasing customer preference for in-vehicle digital experience. Besides, Policybazzar is planning to raise Rs 6,500 crore. PB Fintech, the parent company of Policybazaar in a regulatory filing approved a resolution to raise the said amount via a fresh issue of equity. There will be lots of important earnings announcements too, to keep the markets in action.

The US markets ended higher on Wednesday as investors turned their attention to company earnings, which have started to roll in steadily. Asian markets are trading in green on Thursday tracking the optimism in US stocks, amid markets in Japan closed for a holiday.

Back home, Indian equity benchmarks fell for the second straight session on Tuesday, led by selling pressure in realty, metal and power stocks amid weak global cues. Key indices made negative start and traded lower for whole day, as traders remained cautious with a private report that investments by private equity and venture capital funds declined by 22 per cent to $5.4 billion in June, as compared to the $6.9 billion in the year-ago period. Some cautiousness also came in as ratings agency Crisil said the lull in monsoon over the past 15 days up to July 12 has impacted pace of sowing of kharif crops in 2021-22 crop year (July-June). Traders were also concerned with Minister of State for Finance Bhagwat K Karad stating that the recovery as a percentage of gross non-performing assets moderated to 12.8 percent in 2020-21 from 15.8 percent in the previous fiscal year against the backdrop of the pandemic. Traders also took a note of report where Parliament informed that over Rs 81,000 crore GST compensation is due to states for 2020-21, while for April-May this year, Rs 55,345 crore is outstanding. The economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess. However, markets recouped some intra-day losses as traders found some solace with Union minister Pankaj Chaudhary’s statement that Indian economy is showing signs of revival since the peaking of the second COVID wave in the first half of May on the back of targeted fiscal relief, strong push for capital expenditure, RBI's monetary policy measures, and a rapid vaccination drive. Some support also came as Chief Economic Adviser (CEA) K V Subramanian has expressed hope that economic growth during the current financial year (FY22) would be around 11 per cent as projected in the latest Economic Survey. He also said the overall impact of the second wave on the economy will not be very large. But, markets failed to erased all the losses and ended lower as Asian Development Bank (ADB) in its latest report has downgraded India's economic growth forecast for the current financial year to 10 percent, from 11 percent projected in April. Finally, the BSE Sensex fell 354.89 points or 0.68% to 52,198.51, while the CNX Nifty was down by 120.30 points or 0.76% to 15,632.10.

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