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Indian equity benchmarks ended flat with positive bias on Tuesday, as investors booked profits in realty and banking shares. Markets opened on strong note, tracking positive global cues. Sentiments got a boost with report that India reported 39,000 Covid cases, the lowest since March 18. The pace of vaccination also picked up, boosting expectations of a faster economic recovery. On Monday, India administered a record 8.1 million doses as the central government-led free for all vaccination drive kicked off. Some support also came in as the survey conducted by Ficci showed that with states easing lockdown curbs due to declining number of COVID-19 cases, there are immediate indications of improvement in economic activity as companies are hopeful of better performance in the next 6 to 12 months.  Traders also took a note of PHDCCI President Sanjay Aggarwal’s statement that calibrated measures are needed to support the country's economic recovery and to diminish the daunting impact caused by the second wave of the COVID-19 pandemic on trade and industry. He also pitched for doing away with the customs duties on the imports of primary raw materials for industrial use for at least the current fiscal year and imposing export duties on various primary commodities, which are showing huge price increases - rising 50 per cent over the last fiscal.

Domestic sentiments remained positive in late afternoon session amid reports that in a move that will be beneficial for the government during the proposed initial public offer of LIC, the Department of Economic Affairs under the finance ministry has amended the Securities Contracts (Regulation) Rules. With the latest amendment in rules, companies that have a market capitalisation of more than Rs 1 lakh crore at the time of listing can now sell just five per cent of their shares. Adding more optimism among traders, RBI data showed that bank credit grew by 5.74 per cent to Rs 108.43 lakh crore and deposits rose by 9.73 per cent to Rs 153.13 lakh crore in the fortnight ended June 4, 2021. However, markets failed to hold on to the momentum and ended flat, as traders were concerned with report stating that Indian companies' market capitalization has grown at the fastest pace last year among major economies despite contraction in GDP, flagging the risks to financial stability it poses. 

On the global front, Asian markets settled mostly higher on Tuesday after New York Fed President John Williams noted the recent inflation surge is likely a temporary phase, helping ease investor concerns about the pace of expected monetary tightening. European markets were trading mostly in red as investors paused for breath after recent volatility on concerns about the U.S. interest rate outlook. Amid renewed uncertainty around inflation and the stimulus outlook, investors await a speech from Fed Chair Jerome Powell later in the day and a Bank of England policy decision on Thursday for directional cues. Back home, on the sectoral front, auto stocks were in focus as industry chamber FICCI said the recent changes in the FAME II scheme, including enhanced subsidies for electric two-wheelers, are expected to accelerate demand for electric vehicles in the two-wheelers, three-wheelers and bus segments. There was some reaction in cement industry stocks with a private report stating that pandemic-hit FY21 has turned out to be a good year for the big cement companies, as their net profits surged and market position strengthened.

Finally, the BSE Sensex rose 26.25 points or 0.17% to 52,574.46, while the CNX Nifty was up by 14.25 points or 0.03% to 52,588.71. 

The BSE Sensex touched high and low of 53,057.11 and 52,520.55, respectively and there were 12 stocks advancing against 18 stocks declining on the index.      

The broader indices ended in green; the BSE Mid cap index rose 0.33%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.95%, Industrials up by 1.35%, Auto up by 1.30%, Power up by 1.17% and Basic Materials up by 0.79%, while Realty down by 0.75%, Bankex down by 0.32%, FMCG down by 0.21% and Finance down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 5.25%, Larsen & Toubro up by 2.20%, Ultratech Cement up by 1.11%, TCS up by 0.86% and Titan Company up by 0.80%. On the flip side, Asian Paints down by 1.91%, Bajaj Finance down by 1.61%, Nestle down by 1.18%, Hindustan Unilever down by 1.05% and Indusind Bank down by 0.74% were the top losers.

Meanwhile, PHDCCI President Sanjay Aggarwal has said that calibrated measures are needed to support the country's economic recovery and to diminish the daunting impact caused by the second wave of the COVID-19 pandemic on trade and industry. He also pitched for doing away with the customs duties on the imports of primary raw materials for industrial use for at least the current fiscal year and imposing export duties on various primary commodities, which are showing huge price increases - rising 50 per cent over the last fiscal.

Aggarwal said that trade and industry have to be rejuvenated for achieving a high economic growth trajectory in 2021-22. There is a need to re-fuel household consumption to enhance demand in the economy as it will have an accelerated effect on the expansion of capital investments in the country.

He further said that frontloading the National Infrastructure Pipeline expenditure would provide a much-needed multiplier effect to create aggregate demand in the economy and strengthen the economic recovery. He also stated that government/ PSU payments must not be delayed due to Work From Home issues or shortage of funds as these are crucial to maintain the working capital cycle.

The CNX Nifty traded in a range of 15,895.75 and 15,752.10 and there were 28 stocks advancing against 22 stocks declining on the index.  

The top gainers on Nifty were Maruti Suzuki up by 5.18%, UPL up by 3.86%, Shree Cement up by 3.32%, Wipro up by 2.68% and SBI Life Insurance up by 2.39%. On the flip side, Asian Paints down by 1.75%, Bajaj Finance down by 1.60%, Nestle down by 1.24%, Hindustan Unilever down by 1.09% and Indusind Bank down by 0.85% were the top losers. 

European markets were trading mostly in red; France’s CAC decreased 1.13 points or 0.02% to 6,601.41and Germany’s DAX decreased 12.41 points or 0.08% to 15,590.83, while UK’s FTSE 100 increased 17.34 points or 0.25% to 7,079.63.

Asian markets settled mostly higher on Tuesday with hopes of global economic recovery. New York Fed President John Williams noted the recent inflation surge is likely a temporary phase, while investors are expecting the Fed is going to be relatively slow in tapering its asset purchase program. Japanese shares ended higher, on tracking firm cues from Wall Street overnight, while higher crude oil prices also provided the boost.

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