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Indian markets ended at intra-day high levels on Tuesday as positive macro data raised optimism about the growth outlook. Today, start of the session is likely to be positive propelled by firm cues from global counterparts. All eyes would be on US Fed’s FOMC meeting outcome scheduled tomorrow after the US inflation data came at a two-year low. India’s WPI or wholesale inflation for May will also be closely tracked by market participants. Foreign fund inflows likely to aid domestic sentiments. According to the provisional data available on the NSE, foreign institutional investors (FII) purchased shares worth net Rs 1,677.60 crore on June 13. Traders will be taking encouragement with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that the disinflation process in India is likely to be slow and protracted with convergence to the inflation target of 4 per cent likely to be achieved over the medium-term. Meanwhile, the Securities and Exchange Board of India (Sebi) has introduced a regulatory framework for online investment platforms that facilitate investments in commission-free mutual fund (MF) schemes.  Adani group stocks will be in focus with a private report that the group is in talks with lenders, including global banks, as it seeks to refinance up to $3.8 billion of a loan facility taken for its acquisition of Ambuja Cements last year. There will be some reaction in power stocks with report that the National Committee on Transmission (NCT) has approved a record Rs 64,000 crore worth of six power transmission projects for connecting green energy installations. The projects are likely to be awarded this year through the bidding route. Auto stocks will be in limelight with report that the Indian automotive industry posted an 8 percent growth in production of vehicles across categories for the month of May, with three-wheelers (20 per cent) and passenger vehicles (16 per cent) leading the pack, amid better semiconductor chip supplies.

The US markets ended higher on Tuesday after a cooler-than-expected CPI inflation refueled expectations of a pause in rate hike by the US Fed later tonight. Asian markets are trading mostly in green on Wednesday ahead of the Fed and ECB meetings.

Back home, continuing their upward momentum for the second day, Indian equity benchmarks ended higher by over half percent on Tuesday, amid positive global and domestic cues. Markets made an optimistic start and stayed in green for whole day, as the latest retail inflation and industrial output data painted a positive picture of the domestic economy. India's retail inflation eased to a more than two-year low of 4.25 percent in May while industrial output rebounded from a five-month low to grow 4.2 percent in April. Some support also came with Commerce and Industry Minister Piyush Goyal’s statement that India and the UAE look to more than double non-oil bilateral trade to $100 billion by 2030. At present, the non-oil bilateral trade stands at $48 billion. Markets magnified their gains in late afternoon deals, as traders took encouragement with Chief Economic Advisor (CEA) to the Government of India, V Anantha Nageswaran’s statement that the real gross domestic product (GDP) growth for the year ending March 2023 (FY23) was 7.2 per cent, which surpassed expectations, as the underlying momentum in the economy was quite strong. Sentiments remained positive, as the Union Government released 3rd installment of tax devolution to State Governments amounting to Rs 1,18,280  crore on June 12, 2023, as against normal monthly devolution of Rs 59,140 crore. One advance installment in addition to the regular installment due in June 2023 is being released to States to enable them to speed up capital spending, finance their development/ welfare related expenditure and also to make available resources for priority projects/ schemes. Finally, the BSE Sensex rose 418.45 points or 0.67% to 63,143.16 and the CNX Nifty was up by 114.65 points or 0.62% to 18,716.15. 

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