Indian equity benchmarks were highly volatile, oscillating between gains and losses while managing to close on a positive note on Tuesday. Weakness across sectors pulled the headline indices lower, with utilities, power, capital goods and realty stocks being the biggest drags. The indices opened marginally higher before gyrating between gains and losses, as traders got some support with Minister of State for Finance Pankaj Chaudhary's statement that India's gross domestic product (GDP) is projected to grow at 9.2 per cent to Rs 147.5 lakh crore in 2021-22. Chaudhary said the government has implemented several major reforms in recent years to boost investment and GDP growth. Markets soon slipped into negative terrain, as traders turned cautious with Fitch Ratings' statement that higher fiscal deficits and lack of clarity on consolidation plans in the Budget add risks to its projection of lowering of India's debt-to-gross domestic product (GDP) ratio. Investors are eyeing the RBI MPC meeting which is slated to begin today. Key indices were exhibiting high amount of volatility albeit with a negative bias, as traders remained worried after private report stated that E-way bill generation for goods transportation under the goods and services tax (GST) system stood at 6.88 crore in January, down 4% from the previous month, reflecting some slack in trade due to the spread of the Omicron variant of Covid. However, Indian bourses erased initial losses and managed to end in green, as some optimism remained among traders with Union Finance Minister Nirmala Sitharaman's statement that India will be the fastest-growing economy this year and by the next year, the country will be the fastest-growing economy among the large economies. Meanwhile, Parliament informed that the government has recapitalised public sector banks (PSBs) by infusing over Rs 3.10 lakh crore in the last five fiscals, a majority of which was through issuance of recapitalization bonds. Finally, the BSE Sensex rose 187.39 points or 0.33% to 57,808.58 and the CNX Nifty was up by 53.15 points or 0.31% to 17,266.75.

The US markets ended higher on Tuesday as investors digested another batch of corporate earnings and awaited key inflation data later this week. Corporate earnings were driving stock moves on Tuesday. Harley-Davidson jumped more than 15% after the company reported a surprise profit for the fourth quarter. Amgen and Chegg rose 7.8% and nearly 16%, respectively, following their quarterly updates. Meanwhile, the strength that emerged on markets also came as the major averages have rebounded from the multi-month lows set in late January but remained well off their record highs. On the sectoral front, extending the rally seen in the previous session, airline stocks moved sharply higher over the course of the day, driving the NYSE Arca Airline Index up by 3.7 percent. Steel stocks also showed a substantial move to the upside, resulting in a 2.5 percent spike by the NYSE Arca Steel Index. On the economic data front, the Commerce Department released a report showing the U.S. trade deficit widened modestly in the month of December. The Commerce Department said the trade deficit widened to $80.7 billion in December from a revised $79.3 billion in November. Street had expected the trade deficit to expand to $83.0 billion from the $80.2 billion originally reported for the previous month. The wider deficit came as the value of imports surged 1.6 percent to $308.9 billion, while the value of exports jumped 1.5 percent to $228.1 billion.

Crude oil futures ended lower with cut of over two percent on Tuesday, extending their previous session's losses, ahead of the resumption of indirect talks between the United States and Iran which may revive a nuclear deal that could lead to the removal of sanctions on Iranian oil sales, increasing global supplies. Oil exports from the OPEC producer could resume swiftly if a nuclear deal is reached. The deal could allow over 1 million barrels per day of Iranian oil, equal to over 1% of global supply, back onto the market. Meanwhile, the US Energy Information Administration (EIA) said in its Short Term Energy Outlook that oil production in the US will likely rise to 12 million barrels per day in 2022 and 12.6 million barrels per day in 2023, from 11.2 million barrels per day in 2021. Benchmark crude oil futures for March delivery fell $1.96 or about 2.2 percent to settle at $89.36 a barrel on the New York Mercantile Exchange. Brent crude for April delivery dropped $2.00 or 2.16 percent to settle at $90.69 a barrel on London's Intercontinental Exchange.

Indian rupee concluded weaker on Tuesday amid strength in dollar and elevated crude oil prices. Sentiments were pessimistic with Fitch Ratings' statement that higher fiscal deficits and lack of clarity on consolidation plans in the Budget add risks to its projection of lowering of India's debt-to-gross domestic product (GDP) ratio. Traders were also worried as private report stated that E-way bill generation for goods transportation under the goods and services tax (GST) system stood at 6.88 crore in January, down 4% from the previous month, reflecting some slack in trade due to the spread of the Omicron variant of Covid. However, losses remain capped with Union Finance Minister Nirmala Sitharaman's statement that India will be the fastest-growing economy this year and by the next year, the country will be the fastest-growing economy among the large economies. On the global front, euro weakened for a second consecutive day on Tuesday after European Central Bank President Christine Lagarde said there is no need for big monetary policy tightening in the euro zone. Finally, the rupee ended at 74.74 (Provisional), weaker by 5 paise from its previous close of 74.69 on Friday.

The FIIs as per Tuesday's data were net buyers in both equity and debt segment. In equity segment, the gross buying was of Rs 7715.85 crore against gross selling of Rs 6743.64 crore, while in the debt segment, the gross purchase was of Rs 159.89 crore against gross selling of Rs 9.24 crore. Besides, in the hybrid segment, the gross buying was of Rs 22.86 crore against gross selling of Rs 20.36 crore.

The US markets ended higher on Tuesday led by gains in banking shares as US Treasury yields jumped ahead of the inflation data this week. Asian markets are trading in green on Wednesday on continued bargain hunting and optimism over earnings news. Indian markets managed to end 0.3 percent higher at the end of a choppy session on Tuesday, led by gains in auto, pharma and PSU banking shares. Today, benchmark indices are likely to start session on positive note following overnight gains on Wall Street as well as firm trade in Asian peers. Sentiments will get 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 may also come as NITI Aayog Vice Chairman Rajiv Kumar said the rise in international fuel and commodity prices may not continue going forward. He said the global slowdown is largely due to the slowdown of the two largest economies, the US and China. However, some cautiousness may come as provisional data available on the NSE showed that foreign institutional investors (FIIs) net sold shares worth Rs 1,967.89 crore on Tuesday. Insurance industry stocks will be in focus as data from Irdai showed that the new business premium income of all the life insurance companies grew 2.65 per cent to Rs 21,957 crore in January 2022. The 24 life insurance companies had collected Rs 21,389.70 crore as the first year or the new business premium in January 2021. On a cumulative basis, the new premium income of all the 24 life insurers during April-January period of 2021-22 was up 6.94 per cent at Rs 2,27,188.89 crore. Meanwhile, India's attempts to lower edible oil prices ahead of important state elections have been ruined by a spike in global palm oil prices to record highs after Indonesia, the world's biggest supplier, moved restrict exports. Besides, as per a private report, Life Insurance Corporation (LIC) will file a draft red herring prospectus (DRHP) as early as Thursday for its mega initial public offer (IPO). Besides, investors awaited the outcome of the RBI's policy review due this week and more of corporate earnings for cues.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• Wipro has joined Intel Foundry Services Accelerator - Design Services Alliance to support complex SoC and ASIC designs, and power up products ranging from smartphones to sports cars. 
• ITC's Fabelle Exquisite Chocolates, the pioneers of luxury chocolate experiences in the country, made its debut in Metaverse. 
• Cipla has entered into a share subscription and shareholder's agreement along with a PPA to acquire a 32.49% stake on a fully diluted basis in AMP Energy Green Eleven. 
• Bharti Airtel has reported rise of 22.27% in its consolidated net profit at Rs 1650.70 crore for Q3FY22 as compared to Rs 1350.10 crore for FY21.