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Indian markets extended gains to a second straight day on Wednesday, lifted by financial, IT and auto shares, and heavyweights such as Reliance Industries and Bharti Airtel. Today, the markets are likely to make positive start following gains in global markets. Investors will monitor the RBI MPC outcome to take cues on repo rate and updates on LIC IPO. Reserve Bank Governor Shaktikanta Das headed six-member Monetary Policy Committee (MPC) is scheduled to announce the policy resolution today. It is widely anticipated that the MPC is likely to maintain the status quo on the benchmark interest rate or repo rate. Traders will be getting encouragement as Union Minister of State for Commerce and Industry Som Parkash said India has received Foreign Direct Investment (FDI) inflows worth $339.55 billion in the last five years. There has been a continuous increase in the inflow of FDI in recent years. It increased from $45.15 billion in 2014-15 to $81.97 billion in 2020-21. Some support will come as amid FY23 Union Budget’s focus on investments, leading domestic credit rating agency CRISIL said that the capital expenditure is not as high as it sounds. It, however, was quick to add that considering that governments usually tend to cut capex during a crisis, the government has maintained its focus on growth-spurring initiatives amid the pandemic. Traders may take note of Finance Minister Nirmala Sitharaman’s statement that the projected fiscal deficit of 6.9 per cent for the current financial year is a responsible target as the government has tried to ensure a balance between keeping up expenditure and being fiscally prudent. Meanwhile, Revenue Secretary Tarun Bajaj said the government is open to some tinkering in the varied rates and holding period for computation of capital gains tax on shares, debt and immovable property, in a bid to make it simple. Meanwhile, Finance Minister Nirmala Sitharaman is scheduled to address the post-budget meeting of the RBI’s central board on Monday and highlight key points of the Union Budget 2022-23, including the fiscal consolidation roadmap and high capex plan. Infrastructure industry stocks will be in focus as Union minister Nitin Gadkari said the Road Transport and Highways Ministry has sanctioned highway projects of about Rs 3,36,661 crore during the three years to 2020-21.

The US markets ended higher on Wednesday as an easing in a Treasury selloff provided respite to markets whipsawed in recent weeks by concerns about tightening monetary policy. Asian markets are trading mostly in green on Thursday as traders awaited inflation data that may shape views on how aggressively the Federal Reserve will tighten monetary policy.

Back home, Indian equity benchmarks rose for the second day in a row and ended with gains of over a percent each on Wednesday, as investors awaited the outcome of the RBI's policy review due the next day. Gains across most sectors pushed the headline indices higher, with auto, consumer durables, metal and banking stocks being the biggest movers. Key gauges made optimistic start and stayed in green for whole day, as sentiments got a boost as the preliminary data of the commerce ministry showed that India’s exports grew by 28.51 per cent to $8.67 billion during February 1-7 on account of healthy growth in sectors such as petroleum, engineering and gems and jewellery. The exports during the first week of this month rose by about 31 per cent. According to the data, $8.67 billion per week is almost 20 per cent more than the weekly run rate of $7 billion clocked this year. Some support also came as NITI Aayog Vice Chairman Rajiv Kumar said the rise in international fuel and commodity prices may not continue going forward. Indian bourses extended gains in late afternoon deals, as sentiments remained up-beat with Revenue Secretary Tarun Bajaj’s statement that the government is open to 'some tinkering' in the varied rates and holding period for computation of capital gains tax on shares, debt and immovable property, in a bid to make it simple. Some support also came with Crisil Research report where it said Union Budget capex not as high as it sounds. It, however, was quick to add that considering that governments usually tend to cut capex during a crisis, the government has maintained its focus on growth-spurring initiatives amid the pandemic. Adding to the optimism, Telecom Minister Ashwini Vaishnaw has made an aggressive pitch for adoption of products that are designed and made in India, citing better quality and costs, as he affirmed the government's firm resolve to improving ease of doing business and reducing regulations in the sector. Finally, the BSE Sensex rose 657.39 points or 1.14% to 58,465.97 and the CNX Nifty was up by 197.05 points or 1.14% to 17,463.80.