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Indian markets ended flat on Wednesday as losses in IT, FMCG and financial stocks were capped by gains in auto, metals and pharma sectors. Today, the markets are likely to make optimistic start following mostly positive cues from global markets. Investors will be eyeing the services PMI data to be out later in the day. Market participants will be optimistic ahead of the RBI monetary policy due tomorrow. In the policy, RBI is expected to maintain status quo and focus on economic growth while keeping an eye on the inflationary pressure due to rising commodity prices. Fall in coronavirus cases may also aid the sentiments in markets. Fresh infections continued to fall as it has been seven days since cases have not breached 200,000-mark. India reported 134,105 fresh Covid-19 infections today, taking the caseload to 28,440,988. Also, India has achieved a significant milestone as the cumulative Covid-19 vaccination coverage has crossed the 22 crore-mark, according to the 7 pm provisional report, the Union health ministry said on Wednesday. Some support will come as Minister of State for Finance Anurag Thakur said the Indian economy is resilient, and will rebound based on reforms that have ensured strong fundamentals. Thakur said reforms undertaken by the government, and strong fundamentals have ensured India is witnessing a “swift” rebound from a contraction of 24.4 per cent in April-June 2020 to a growth of 1.6 per cent in the January-March 2021. Traders may take note of report that Industry chamber Assocham recommended the government to extend relief measures such as regulatory easing, wage support, and interest subsidy for the MSMEs which are reeling under the severe impact of COVID-19. As the states are in the process of easing lockdowns, it said the trade and industry would need all-around support to pick up their business thread again. Banking stocks will be in focus as Standard and Poor (S&P) stated that the second Covid wave may push credit costs of the Indian banking system to 2.4 per cent by March 2022, compared to base case of 2.2 per cent. Sugar stocks will be in limelight after the government brought forward the target date for achieving 20 per cent ethanol-blending with petrol by two years to 2023 to help reduce India's dependence on costly oil imports.

The US markets ended higher on Wednesday ahead of key US economic data due later in the week as investors weighed inflation concerns and a fresh surge in so-called meme stocks. Asian markets are trading mostly in green on Thursday boosted by optimism over the nation’s vaccine rollout.

Back home, Indian equity benchmarks recouped losses to end flat for second straight day on Wednesday, amid a mixed trend in global markets. For most part of the day, benchmarks traded with a negative bias, as traders were concerned with report that the second Covid wave has led to a sudden spike in India’s unemployment rate - it rose to 11.9% in May from 7.97% in the previous month. The rate had last reached double digits in June last year, when it was 10.18%. According to the Centre for Monitoring Indian Economy (CMIE) data, barring April, May and June last year, the monthly unemployment had never breached the double-digit mark at least since January, 2016. Sentiments remained subdued with Moody’s Investors Service pegged India’s GDP growth at 9.3 percent in the current fiscal ending March 2022 and 7.9 percent in FY23. The re-imposition of lockdown measures along with behavioural changes on fear of contagion will curb economic activity, it said, adding that it does not expect the impact to be as severe as during the first wave. Some concerns also came amid report stating that India reported 133,228 fresh Covid-19 infections, taking the caseload to 28,306,883. With 3,205 new fatalities, the death toll is now at 335,114, Worldometer showed. India continues to be the second worst-hit nation. However, fag-end buying in power, energy and auto stocks helped domestic benchmark indices erase most of the day's losses. Traders took some support after India’s exports grew by 67.39 per cent to $32.21 billion in May driven by healthy growth in sectors such as engineering, pharmaceuticals, petroleum products and chemicals. Exports in May last year stood at $19.24 billion and in May 2019 it was at $29.85 billion. Meanwhile, underlining the importance of the agriculture, the Minister of Agriculture and Farmers Welfare Narendra Singh Tomar has said that the dream of a self-reliant and digital India will only be realized by taking along the agriculture sector. Finally, the BSE Sensex fell 85.40 points or 0.16% to 51,849.48, while the CNX Nifty was up by 1.35 points or 0.01% to 15,576.20.

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