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Indian markets ended with strong gains on Monday with the help of rally in shares of Reliance Industries, L&T, HDFC Bank, Kotak Bank, and Tata Motors amid firm global cues. Today, markets are likely to extend previous session’s rally with optimistic start tracking strong gains overnight on Wall Street. Also, oil prices fell more than a dollar a barrel overnight as China's ailing property sector sparked demand worries, causing traders to reassess the supply risk premium from escalating tensions in the Middle East. Foreign fund inflows likely to aid sentiments. Foreign institutional investors (FIIs) turned net buyers in the cash segment after selling in the previous seven days, buying shares worth Rs 110.01 crore on January 29, provisional data from the NSE showed. Traders will take encouragement as the finance ministry said India is expected to become the third-largest economy in the world with a GDP of $5 trillion in the next three years and touch $7 trillion by 2030 on the back of continued reforms. Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices. Ahead of the Interim Budget, a Finance Ministry report placed FY25 GDP growth close to 7 per cent despite new geopolitical risks such as the Red Sea crisis that could impact global inflation and economic output. However, there may be some cautiousness with report that wholesale prices of tur dal have increased 5% in the last one month despite the arrival of new crops and continuing imports from Myanmar as reduced acreage and decreased production for a second consecutive year impact supply. Sugar industry stocks will be in focus after sugar trade body AISTA projected the country's sugar production to be around 31.6 million tonnes for the 2023-24 season (October-September), about four per cent lower than the previous season. Meanwhile, shares of ITC, NTPC and Bajaj Finance will be in focus as traders react to their latest quarterly earnings. Meanwhile, Adani Total Gas, Bajaj Finserv, Dr.Reddy's, Larsen & Toubro, Mahindra & Mahidra Finance, NDTV, PB Fintech, Strides Pharma, Star Health, VIP Industries and Voltas are few of the prominent companies scheduled to announce Q3 results on Tuesday. In primary market, BLS E Services Rs 311 crore IPO opens for subscription today. The offer period closes on February 01. Company to issue up to 2.30 crore fresh equity shares in the price band of Rs 129 - Rs 135 per share.

The US markets ended higher on Monday as market participants looked ahead to this week's slew of megacap earnings, economic data and the Federal Reserve's monetary policy meeting. Asian markets are trading mixed on Tuesday as investors continue to grapple with the fallout from Evergrande’s liquidation order.

Back home, Indian equity benchmarks experienced widespread buying and ended with gains of over one and half percent on Monday, in-tandem with a rally in Asian markets along with buying in blue chip firms Reliance Industries, Tata Motors and Power Grid Corporation. Markets made a positive start and extended gains as the day progressed as traders took support with Union Coal Minister Pralhad Joshi’s statement that India will have surplus domestic coal by the financial year 2025-26 that can be used to run the imported coal-based (ICB) power plants. He asserted that the government is aiming at boosting domestic production and reducing fossil fuel imports. Traders took a note of private report stating that the commerce department is working towards setting up an ‘export advisory panel’, comprising senior industry officials, as part of India’s strategy to promote the benefits of the free-trade agreements (FTAs) that have been signed and help exporters leverage them better. Sentiments remained up-beat in late afternoon deals, taking support from Union minister Ajay Bhatt’s statement that India is becoming self-reliant in defence production, and for the first time, leading the top 25 countries in defence exports. Traders also remained optimistic, as lauding the Pradhan Mantri Jan Dhan Yojana (PMJDY), Union Minister of Commerce & Industry, Piyush Goyal said that it has played a pivotal role in empowering the entrepreneurs to be self-reliant and be a part of the country's growth story and also emphasized that the PMJDY has propelled the country from being part of a ‘fragile five’ to be the fifth largest economy in the world. Traders overlooked report that the India's foreign exchange reserves saw a dip of $2.79 billion to $616.14 billion for the week ending on January 19. Previously, forex reserves were up by $1.6 billion, dragging the reserves to $618.94 billion, for the week ended on January 12, 2024. Finally, the BSE Sensex rose 1240.90 points or 1.76% to 71,941.57 and the CNX Nifty was up by 385.00 points or 1.80% to 21,737.60.

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