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Indian markets closed higher for a second straight session on Monday following buying in index majors Reliance Industries, ICICI Bank and recovery in global markets. Today, the markets are likely to open in green on firm global cues. Some support will come as a new Multidimensional Poverty Index (MPI) released jointly by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford showed that the number of people living below the poverty line in India decreased by 415 million between 2005-06 and 2019-21. Traders may take note of an RBI article stating that India needs to set up a dedicated wing in the environment ministry to release estimates of Green GDP periodically on a regular basis and create a user-friendly data dissemination platform. However, there may be some cautiousness as the State of the Economy report released by the Reserve Bank of India (RBI) stated that the headline consumer price index (CPI)-based inflation, which stood at 7.4 per cent in September, might have peaked and could fall going ahead thanks to easing momentum and favourable base effects. Besides, foreign institutional investors (FIIs) have net sold shares worth Rs 372.03 crore on October 17, as per provisional data available on the NSE. Meanwhile, Crisil said the Reserve Bank of India's revised guidelines for asset reconstruction companies (ARCs) would structurally fortify the sector through improved governance norms, better disclosures, and lower funding requirement for asset acquisition. The sugar industry stocks will be in focus as industry body ISMA said the country's sugar production is projected to be 36.5 million tonnes in the 2022-23 marketing season, an increase of 2 per cent compared to the year-ago period. There will be some reaction in power sector stocks as the union minister for power, new and renewable energy said India will have more than 65 per cent of its power generation from renewable energy sources by 2030. He also said initiatives by the Centre including the Production Linked Scheme (PLI) scheme will ensure India to have a 90 Gw solar module capacity. Investors awaited more earnings from India Inc for domestic cues.

The US markets ended higher on Monday after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. Asian markets are trading mostly in green on Tuesday after Wall Street’s rally overnight.

Back home, Indian equity benchmarks extended gains to second day and ended higher with gains of more than half percent on Monday on the back of buying in index majors SBI, NTPC and Bajaj Finserv and recovery in global markets. Markets started the week on a negative note, as the provisional data available on the NSE showed that foreign institutional investors (FIIs) have net sold shares worth Rs 1,011.23 crore on October 14, 2022. After the initial downtick, markets soon gradually inched higher, as traders took support with Finance Minister Nirmala Sitharaman’s statement that the Indian economy will stay on course despite global headwinds and is projected to grow at seven per cent in fiscal 2022-23, and attributed this to the conducive domestic policy environment and focus on key structural reforms. She also reiterated that the inflation rate, which is hovering over 7 per cent in India, is at a manageable level compared to where some other countries are at present. Some support also came with a private report that India’s focus on reforms and economic growth will result in foreign direct investment (FDI) of $475 billion in the next five years as most multinational companies (MNCs) see India as an attractive investment destination for their global expansion. Key gauges added gains as the day progressed and finally settled around the day’s high, taking support from the data released by the commerce ministry showing that the country's exports rose by 4.82% to $35.45 billion in September, even as the trade deficit widened to $25.71 billion. The trade deficit in September 2021 was $22.47 billion. Additional support also came as Commerce and Industry Minister Piyush Goyal has expressed confidence that the country will achieve the export target for goods and services to $2 trillion by 2030. He emphasised on sustaining the export momentum and said that he is confident that Indian exports will be able to wither the global headwinds and will surpass growth in exports by a big margin. Moreover, the Reserve Bank of India's (RBI) weekly statistical supplement showed that India's foreign exchange reserves rose to $532.87 billion in the week through October 7. The country's reserves rose by $204 million from the previous week, the first increase since the week ended July 29. Finally, the BSE Sensex rose 491.01 points or 0.85% to 58,410.98 and the CNX Nifty was up by 126.10 points or 0.73% to 17,311.80.

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