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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.

On the global front, Asian markets ended mostly higher on Tuesday as positive U.S. vaccination news and easing worries about an imminent tapering of stimulus by the Federal Reserve raised hopes the global economy will recover faster than expects. Investors also awaited the Federal Reserve's annual Jackson Hole conference later in the week for clues on possible asset purchase tapering timeline. European markets were trading mostly in red even as official data showed Germany's economy grew at a faster than expected pace in the second quarter, underpinned by domestic demand. Gross domestic product grew a seasonally and calendar-adjusted 1.6 percent from the first quarter, when output decreased 2.0 percent. Back home, on the sectoral front, infrastructure industry stocks were in focus 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. Coal industry’s stocks too were in action as the government identified 160 coal mining assets worth an estimated at Rs 28,747 crore for monetisation over four years till FY25.

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.    

The BSE Sensex touched high and low of 56,023.22 and 55,536.84, respectively and there were 19 stocks advancing against 11 stocks declining on the index.   

The broader indices ended in green; the BSE Mid cap index rose 1.52%, while Small cap index was up by 1.69%.

The top gaining sectoral indices on the BSE were Metal up by 2.76%, Basic Materials up by 2.16%, Oil & Gas up by 1.99%, PSU up by 1.81% and Industrials up by 1.75%, while IT down by 0.37%, TECK down by 0.36%, FMCG down by 0.32% were the few losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 7.91%, Tech Mahindra up by 3.41%, Tata Steel up by 3.39%, Bajaj Finance up by 3.33% and HDFC Bank up by 2.31%. On the flip side, Nestle down by 1.34%, HDFC down by 1.08%, Infosys down by 1.06%, HCL Technologies down by 0.92% and Asian Paints down by 0.87% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said foreign direct investments into the country is on the rise, jumping to $12.1 billion in May this year. He said ‘India has received the highest ever foreign direct investment (FDI) inflow in 2020-21. It surged by 10 per cent to $81.72 billion and FDI during May 2021 is $12.1 billion, i.e. 203 per cent higher than May 2020.’ He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22.

He said that exports are recording healthy growth and during August 1-14, the outbound shipments grew 71 per cent over 2020-21 and 23 per cent over 2019-20. According to the minister, India's average applied import tariff (duty) has dropped to 15 per cent in 2020 from 17.6 per cent in 2019, and the country's applied tariffs are way below the bound rate of 50.8 per cent (permissible limit under the World Trade Organization).

Talking about employment, he said more than 54,000 startups were providing about 5.5 lakh jobs and over 20 lakh jobs will be created by 50,000 new startups in the next five years. “It is time for our industry to expand our capacity, capability and commitment to develop resilient global supply chains,' he said, adding that the Centre expects that the Indian industry should suggest areas for intervention through research, handholding of exporters/ manufacturers, and deeper engagement with states and Missions.

The CNX Nifty traded in a range of 16,647.10 and 16,495.30 and there were 35 stocks advancing against 15 stocks declining on the index.    

The top gainers on Nifty were Bajaj Finserv up by 7.78%, Hindalco up by 3.85%, Adani Ports &SEZ up by 3.79%, Tata Steel up by 3.57% and Bajaj Finance up by 3.37%. On the flip side, Nestle down by 1.40%, Britannia Industries down by 1.40%, Asian Paints down by 1.05%, HDFC down by 1.03%, Infosys down by 0.99% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 6.69 points or 0.09% to 7,102.33 and France’s CAC decreased 18.99 points or 0.28% to 6,664.11, while Germany’s DAX increased 56.29 points or 0.36% to 15,909.08.

Asian markets ended mostly higher on Tuesday, tracking a Wall Street rally overnight after the United States Food and Drug Administration granted full approval for the Pfizer-BioNTech corona-virus vaccine, while global investors are awaiting the US Federal Reserve's annual Jackson Hole conference later in the week for hints at when it may taper its monetary stimulus. Chinese shares gained after reports that the US Securities and Exchange Commission has begun issuing new disclosure requirements to Chinese companies that want to list in New York, part of an effort to boost investor awareness of the risks involved. Further, Japanese shares ended higher with hopes for a faster economic recovery globally.

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