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Indian markets ended higher with notable gains on Tuesday backed by broad-based buying, rising for a second straight day following a six-day sell-off that took away seven percent of their value. Today, markets are likely to get flat-to-negative start amid rise in crude oil prices and tracking weakness across other Asian markets despite a strong session on Wall Street overnight. Continued foreign fund outflows likely to dampen sentiments in domestic markets. Foreign institutional investors (FIIs) sold shares worth Rs 2,701 crore on June 21. FIIs have so far this year sold shares worth Rs 2,07,195 crore, data from NSDL showed. There will be some cautiousness with RBI data showing that operating profit growth of listed private companies decelerated across broad sectors in the January-March quarter of 2021-22, on the back of rise in expenditure. Operating profit of manufacturing companies decelerated sharply to 7 per cent in the fourth quarter of last fiscal as against 70 per cent in the corresponding quarter of the preceding fiscal. However, some support may come later in the day as Union minister Piyush Goyal has expressed hope that the free trade agreement between India and the United Kingdom will be concluded by Diwali. The minister for commerce and industry and textiles said that the government is moving ahead on free trade pacts with Canada, European Union and the UK. Besides, capital markets regulator Sebi has permitted mutual funds to again invest in foreign stocks within the aggregate mandated limit of $7 billion for the industry. This came in the wake of a major correction in global markets that brought down the valuation of international stocks. There will be some buzz in the construction companies stocks as ICRA said the domestic metro rail projects will provide business opportunities worth Rs 80,000 crore for construction companies over the next five years. Infrastructure industry stocks will be in focus as the Department of Economic Affairs (DEA), under the finance ministry, in collaboration with the Capacity Building Commission (CBC) has framed a Capacity Enhancement Plan (CEP) for driving relevant capacities across ministries, state governments and the extended ecosystem of infrastructure execution in the country. There will be some reaction in Telecom stocks as industry body Broadband India Forum termed telcos' arguments on a level playing field between public and captive private 5G networks as absurd and impractical, and asserted that the two are separate sets of services on a completely different footing and not competing with each other.

The US markets ended sharply higher on Tuesday as investors picked up stocks after markets moved into an oversold zone. Asian markets are trading mostly in red on Wednesday as investors remain nervous about aggressive hikes in interest rates and the prospect of slowing growth.

Back home, Indian equity benchmarks were positive for second consecutive day and ended Tuesday’s session with gains of around two percent, led by a strong rebound across all sectors amid positive cues from the global markets. Domestic indices opened gap up and continued to gain strength throughout the day, as traders took support with the southwest monsoon entering Madhya Pradesh, Chhattisgarh, coastal Andhra Pradesh, Odisha, west Bengal, Jharkhand and Bihar on Monday, cumulative rainfall deficiency so far has been reduced to 5% from 25% reported on June 16. The India Meteorological Department (IMD) has predicted an intense spell of rainfall along the west coast in the next five days. Some support also came as retirement fund body EPFO has added 17.08 lakh net new subscribers in April 2022, nearly 34 per cent more than 12.76 lakh enrolled in the same month a year ago. Local equity markets enlarged their gains in the late afternoon session, taking support from the commerce and industry minister Piyush Goyal’s statement that the proposed free trade agreement with the European Union, when implemented, will provide greater market access for several domestic sectors such as textiles, leather and sports goods in the EU market. Traders overlooked labour bureau's statement that retail inflation for farm and rural labourers increased to 6.67 per cent and 7 per cent, respectively in May, mainly due to higher prices of certain food items. Meanwhile, the pension Fund Regulatory and Development Authority (PFRDA) data showed that the number of subscribers in various schemes of the National Pension System (NPS) rose to 53.17 million in May 2022, registering a 24.07 per cent YoY growth. Till May 2021, the NPS subscribers numbers stood at 42.85 million. Finally, the BSE Sensex rose 934.23 points or 1.81% to 52,532.07 and the CNX Nifty was up by 288.65 points or 1.88% to 15,638.80.

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