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Indian markets clocked gains to the tune of almost one percent on Monday backed by across-the-board buying despite weak trend in global equities. Today, markets are likely to get flat-to-positive start owing to lack of definite cues from the global markets, as US was closed overnight. Traders will be taking encouragement as Finance Minister Nirmala Sitharaman said that while the necessary stimulus for growth would continue, her ministry and the Reserve Bank of India (RBI) would work on a pathway to maintain the growth momentum for the next 25 years in order to make India an advanced economy. Some support will come as Reserve Bank Governor Shaktikanta Das said despite the latest headwinds arising from the Jackson Hole summit leading to extreme volatility, the country’s banking system and financial markets are strong enough to withstand such pressures. Traders may take note of report that Information and Technology Minister Ashwini Vaishnaw said that the ministry will soon come up with a new version of the Data Protection Bill. However, there may be some cautiousness as India's external debt rose by 8.2 per cent year-on-year to $620.7 billion as of March 2022, which according to the finance ministry is sustainable. Coal industry stocks will be focus as the government's monthly statistics (provisional) showed that India produced 58.33 million tonnes of coal in August, missing its target of 67.94 MT for the month, though it increased by 8.27 per cent from 53.88 MT in the corresponding month of previous fiscal. There will be some reaction in gold finance companies stocks as Rating agency Standard & Poor’s (S&P) said intense competition in the gold loan business in India may shrink margins of gold finance companies. Tea industry stocks will be in limelight as Tea Board data showed that exports of tea during the first six months January to June 2022 has increased to 96.89 million kg as compared to 86.46 million kg in the similar previous period. Meanwhile, India’s largest airport service aggregator platform, DreamFolks Services is likely to make its debut today on stock exchanges. The company launched its Rs 562 crore initial public offering (IPO) from August 24 to August 26 and received strong demand across investor categories. The IPO was subscribed by 56.68 times Qualified institutional investors (QIBs) subscribed by 70.53 times against the portion offered to them.

The US markets remained closed on Monday on account of Labor Day holiday. Asian markets are trading mostly higher on Tuesday after China pledged to make renewed efforts to boost its economy on Monday, while investors pinned hope on more clarity ahead of a number of central bank meetings.

Back home, Indian equity benchmarks ended higher over half percent on Monday, with Nifty settling above crucial 17,650 mark, while Sensex ending above 59,200 mark. Key gauges made optimistic start and stayed in green for whole day, as traders took encouragement with a State Bank of India report stated India is likely to become the third largest economy by 2029. India is currently ranked fifth largest economy. Some support also came as hoping for a double-digit growth in GDP in this financial year, Union Finance Minister Nirmala Sitharaman said the nation is on a strong wicket when compared to others, and is responsive in terms of extending hand-holding to the required sections. Traders also found some solace with report that foreign investors have pumped in a little over Rs 51,200 crore into the Indian equity markets in August, making it the highest inflow in 20 months, amid improving risk sentiment and stabilisation in oil prices. Key gauges extended their gains in late afternoon session as S&P Global in a report said India’s Services PMI rose to 57.2 in August from July’s 4-month low of 55.5, on stronger expansion in new work intakes, upturn in business activity, and the sharpest rise in employment for over 14 years. Adding more optimism on the street, a private report said India has overtaken the U.K. to become the world's fifth-largest economy and is now behind only the US, China, Japan and Germany. A decade back, India was ranked 11th among the large economies while the U.K. was at the fifth position. Traders overlooked Former RBI governor D Subbarao’s statement that India's GDP growth of 13.5 per cent in the April-June quarter of 2022-23 (Q1FY23) has turned out be a cause for 'disappointment and concern', as there was expectation of a bigger bounce back from the first quarter of last year when economic activity was crippled by the Delta wave of COVID-19. Finally, the BSE Sensex rose 442.65 points or 0.75% to 59,245.98 and the CNX Nifty was rose by 126.35 points or 0.72% to 17,665.80.

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