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Indian markets ended with strong gains on Tuesday with firm global cues and steady foreign flows. Gains in financial, healthcare, consumer durables and auto stocks, also supported the indices. Today, markets are likely to get weak start, following two back-to-back days of gains, amid lackluster trade in global markets ahead of a key rate decision by the Fed. Traders will be concerned as retail inflation for farm and rural workers increased to 6.94 per cent and 7.26 per cent, respectively, in August mainly due to higher prices of certain food items. In July, retail inflation for farm and rural workers stood at 6.60 per cent and 6.82 per cent respectively. There will be some cautiousness as chief economic advisor V Anantha Nageswaran said Indian economy will grow at over 7 per cent, down from above 8 per cent of growth rate projected in January. He, however, said that the economic momentum and the animal spirits are unmistakable. Though, foreign fund inflows likely to aid domestic sentiments. Foreign institutional investors (FIIs) have net bought shares worth Rs 1,196.19 crore on September 20, as per provisional data available on the NSE. Some respite may come later in the day chairman of National Bank for Financing Infrastructure and Development K V Kamath said India is expected to be a $25-trillion economy in 25 years. He said the Indian economy is growing at a compound annual growth rate of 8-10 per cent. Some support may come as Chief Economic Advisor V. Anantha Nageswaran said India's fintech market is expected to reach $1 trillion by 2030, from $31 billion in 2021. Meanwhile, the government has extended the last date for the export of broken rice in transit till September 30. It was earlier allowed till September 15. Traders may take note of report that Commerce and Industry Minister Piyush Goyal has said the government was working on production-linked incentive (PLI) schemes for more products to boost manufacturing in India. The government had rolled out PLI schemes for 15 key sectors, including technology, textile, automobile, pharmaceutical drugs, speciality steel, electronics, among others. There will be some reaction in medical devices industry stocks as the Union government notified the Medical Devices Rules as Medical Devices (Amendment) Rules, 2022. The Rules made provisions for all class A medical device manufacturers to register themselves through an identified online portal established for the purpose.

The US markets ended lower on Tuesday as the eve of a U.S. Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the U.S. central bank wants to tame. Asian markets are trading mostly in red on Wednesday following Wall Street’s negative lead ahead of the Federal Reserve’s expected rate hike.

Back home, Indian equity benchmarks ended higher for the second straight session on Tuesday, led by broad-based gains amid a rebound in the global equities. Key gauges made gap-up opening and traded in fine-fettle in early deals as traders took some solace with a private survey report indicating that Indian consumers are concerned about rising costs but 71 per cent of them believe the economy will recover within a year. Foreign fund inflows also aided the domestic sentiments. Foreign institutional investors (FIIs) have net bought shares worth Rs 312.31 crore on September 19, as per provisional data available on the NSE.  Traders took a note of the watchdog - Insolvency and Bankruptcy Board of India (IBBI) has amended its regulations to allow sale of one or more assets of an entity undergoing insolvency resolution process, besides other changes. This move will provide better market-linked solutions for stressed companies. Bourses maintained healthy gains in late afternoon session, taking support from reports that the commerce and industry ministry is planning a multi-media campaign to promote over 400 GI (Geographical Indication) products such as Darjeeling Tea, Chanderi Fabric, Mysore Silk, and Kashmir Walnut Wood Carving. It added this would further increase employment avenues for the producers and boost the economy. Some optimism also came after report stated that India and Saudi Arabia have discussed the feasibility of institutionalizing trade in rupee and riyal and the introduction of UPI (Unified Payment Interface) and RuPay card there. Diversification and expansion of trade and commerce, removal of trade barriers, automatic registration and marketing authorization of Indian pharma products in Saudi Arabia, feasibility of institutionalizing Rupee-Riyal trade, introduction of UPI and Rupay cards in Saudi Arabia; were amongst the key points of discussion. Finally, the BSE Sensex rose 578.51 points or 0.98% to 59,719.74 and the CNX Nifty was up by 194.00 points or 1.10% to 17,816.25.

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