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Bulls continued to pull Indian equity benchmarks higher on Tuesday, setting fresh record closing highs, driven by gains in Bharti Airtel, Bajaj Finance and Bajaj Finserv amid positive global cues. After making positive start, key gauges turned cautious ahead of GDP numbers. The National Statistical Office will release the GDP numbers for the April-June quarter on August 31, 2021. RBI MPC in its August 06, 2021 resolution said that it expects June quarter GDP to grow at 21.4 per cent. However, markets soon regained traction and traded in fine fettle taking support from commerce ministry’s data showing that exports from special economic zones (SEZs) grew by about 41.5 per cent to Rs 2.15 lakh crore during the April-June quarter of the current fiscal on account of healthy growth in pharmaceuticals, engineering, and gems and jewellery sectors. Traders took note of report that Niti Aayog has suggested to the government to provide tax incentives for investment in InvITs, and bring them under the IBC to attract retail as well as institutional investors to achieve the goals of the National Monetisation Pipeline scheme.

The rally in Indian equity markets also received support from private report that India’s economy is expected to have grown in double digits during the April-June quarter of this financial year, helped by a low base of the previous year. The expected rebound in economic growth would also stand testament to the strong consumer activity, unfazed by the second wave of the covid-19 pandemic. First-quarter GDP numbers schedule to be release today. Traders also remain energized with another private report stating that the overall hiring activity in India has touched pre-pandemic level and going ahead consumption economy will play an important role in driving job growth further. Adding more optimism, a private report stated that business resumption activity continued its northward journey and reached a new high, much above the pre-pandemic levels for the week ended August 29. The Nomura India Business Resumption Index rose to 102.7 for the week ending 29 August from 101.3 in the prior week.

On the global front, Asian markets settled mostly higher on Tuesday despite concerns over surging coronavirus cases in the region and the continuing regulatory clampdown in China. Investors ignored official data that showed China's services industry contracted in August for the first time since the height of the pandemic early last year. European markets were trading higher as signs of a slowdown in China's economy spurred hopes for more policy support. Back home, on the sectoral front, telecom stocks were in focus as Cellular Operators Association of India said India risks lagging in the rollout of the super-fast fifth-generation wireless networks unless the government makes airwaves cheaper in an upcoming auction, citing the financial stress in the sector. There was some buzz in insurance industry stocks with a private report that General and health insurers have received almost 1.4 times the number of Covid-related health claims so far in FY22 than what they had received in entire FY21.

Finally, the BSE Sensex rose 662.63 points or 1.16% to 57,552.39, while the CNX Nifty was up by 201.15 points or 1.19% to 17,132.20. 

The BSE Sensex touched high and low of 57,625.26 and 56,859.10, respectively and there were 27 stocks advancing against 3 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 0.83%, while Small cap index was up by 0.86%.

The top gaining sectoral indices on the BSE were Telecom up by 4.90%, TECK up by 1.62%, Consumer Durables up by 1.54%, Utilities up by 1.50% and Healthcare up by 1.30%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bharti Airtel up by 6.99%, Bajaj Finance up by 4.94%, Bajaj Finserv up by 3.34%, Asian Paints up by 3.03% and Titan Company up by 2.32%. On the flip side, Nestle down by 1.55%, Indusind Bank down by 1.14% and Reliance Industries down by 0.47% were the top losers.

Meanwhile, exports from special economic zones (SEZs) grew by about 41.5 per cent to reach Rs 2.15 lakh crore during the April-June quarter of the current fiscal (Q1FY22) driven by healthy growth in pharmaceuticals, engineering, and gems and jewellery sectors. SEZs are key export hubs which contribute about one-fourth of the country's total outbound shipments.

According to commerce ministry data, exports from these zones dipped to Rs 7.56 lakh crore in 2020-21 as against Rs 7.97 lakh crore in 2019-20. In the first quarter of the current financial year, SEZ exports rose about 41.5 per cent to Rs 2.15 lakh crore. As many as 427 such zones have been approved by the government, out of which 267 are operational as on June 30. The data showed that till June 30, Rs 6.25 lakh crore have been invested in these zones and a total of 24.47 lakh people are employed there.

Export Promotion Council for EoUs and SEZs (EPCES) is the nodal body, set up by the commerce ministry, to promote shipments from these zones. The council would work on taking the country's exports to USD 400 billion during the current fiscal. The major export destinations include the United Arab Emirates, US, UK, Australia and Singapore.

The CNX Nifty traded in a range of 17,153.50 and 16,915.85 and there were 42 stocks advancing against 8 stocks declining on the index.   

The top gainers on Nifty were Bharti Airtel up by 6.70%, Bajaj Finance up by 5.07%, Hindalco up by 4.90%, Eicher Motors up by 4.70% and Shree Cement up by 4.02%. On the flip side, Tata Motors down by 1.49%, Nestle down by 1.23%, Indusind Bank down by 1.21%, Reliance Industries down by 0.58% and BPCL down by 0.22% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 23.03 points or 0.32% to 7,148.01, France’s CAC increased 5.38 points or 0.08% to 6,687.30 and Germany’s DAX increased 35.56 points or 0.22% to 15,887.31.

Asian markets settled mostly higher on Tuesday as investors took the US Fed chief Jerome Powell's speech at Jackson Hole Symposium as a sign the Fed will keep supporting the market with low interest rates. Although, concerns over surging corona-virus cases in the Asian region and continuing regulatory clampdown in China pressurizing market sentiments. Chinese gaming stocks listed in the US came under pressure after regulators in Beijing introduced new rules that limit the number of hours kids can play online video games. Official data showed that activity in China’s services sector slipped into contraction in August. Japanese shares gained after reports that Japanese Prime Minister Yoshihide Suga is considering replacing the ruling party's powerful secretary-general, Toshihiro Nikai, as the Japanese leader struggles with low approval ratings amid surging coronavirus infections.

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