Snapping a six-day losing run, Indian equity benchmarks settled in green after a highly volatile session on Monday, helped by emergence of value buying in shares like HDFC, Hindustan Unilever and Ultratech Cement amid positive cues from European markets. Key indices made a cautious start and fluctuated between gains and losses throughout the day, on the back of recession fears coupled with aggravated foreign outflows from Indian equities. Foreign portfolio investors (FPIs) pulled out 31,430 crore equities so far in June. With this, the net foreign outflows from equities reached Rs 1.98 lakh crore in 2022 till now. Some concern also came with the latest data released by the Reserve Bank of India (RBI) showed India's foreign exchange reserves declined $4.6 billion to $596 billion for the week ended June 10. The fall in total reserves was mainly because of a decline in foreign currency assets worth $4.5 billion. Adding more pessimism, a report stated that as many as 428 infrastructure projects, each entailing an investment of Rs 150 crore or more, have been hit by cost overruns of more than Rs 4.98 lakh crore. However, in the late afternoon trade, the indices made smart recovery as traders found support as the Income Tax department stated that the net direct tax collections till mid-June this fiscal increased 45 per cent to over Rs 3.39 lakh crore, buoyed by decent advance tax mop-up. Sentiments remained positive as Member of the economic advisory council to the prime minister -- Sanjeev Sanyal said that the country's internal market is in a good position and its macroeconomic stability is in a comfortable zone despite the ravage by the pandemic. He said that there has been an unprecedented crisis during the two-year-long pandemic and the Indian economy has emerged stronger after that. Some optimism also came with a private report stating that a combination of normal rainfalls aiding bumper agriculture output and the Reserve Bank of India (RBI) further hiking interest rates to cut easy money in the system hold key to bringing down multi-year high inflation triggered by surging food and fuel prices. Finally, the BSE Sensex rose 237.42 points or 0.46% to 51,597.84 and the CNX Nifty was up by 56.65 points or 0.37% to 15,350.15.

The US markets were closed on Monday on account of Juneteenth National Independence Day.

Indian rupee ended marginally higher against dollar on Monday, owing to dollar sale by exporters and banks. Traders got support with Member of the economic advisory council to the prime minister -- Sanjeev Sanyal's statement that the country's internal market is in a good position and its macroeconomic stability is in a comfortable zone despite the ravage by the pandemic. He said that there has been an unprecedented crisis during the two-year-long pandemic and the Indian economy has emerged stronger after that. Some support also came with a private report stating that a combination of normal rainfalls aiding bumper agriculture output and the Reserve Bank of India (RBI) further hiking interest rates to cut easy money in the system hold key to bringing down multi-year high inflation triggered by surging food and fuel prices. However, unabated foreign fund outflows restricted the appreciation bias in the rupee. On the global front, yen wallowed near a 24-year low against the dollar on Monday, licking its wounds after the Bank of Japan last week renewed its commitment to ultra-easy policy and bucked the trend among global peers to rapidly raise interest rates. Finally, the rupee ended at 77.98, stronger by 7 paise from its previous close of 78.05 on Friday.

The FIIs as per Monday's data were net sellers in equity segment, while net buyers in debt segment. In equity segment, the gross buying was of Rs 8999.86 crore against gross selling of Rs 17952.58 crore, while in the debt segment, the gross purchase was of Rs 1744.77 crore with gross sales of Rs 404.08 crore. Besides, in the hybrid segment, the gross buying was of Rs 5.26 crore against gross selling of Rs 27.30 crore.

The US markets remained closed on Monday on account of Juneteenth National Independence Day. The Asian markets are trading mostly higher on Tuesday as investors overlooked persistent concerns about aggressive hikes in COVID-era rates and their impact on economic growth. Indian markets halted a six-day-long losing streak on Monday, though fears of aggressive rate hikes and their impact on economic growth kept investors on the back foot. Today, the markets are likely to make positive start tacking gains in Asian peers. Some support will come with the southwest monsoon entering Madhya Pradesh, Chhattisgarh, coastal Andhra Pradesh, Odisha, west Bengal, Jharkhand and Bihar on Monday, cumulative rainfall deficiency so far has been reduced to 5% from 25% reported on June 16. The India Meteorological Department (IMD) has predicted an intense spell of rainfall along the west coast in the next five days.  However, there may be some cautiousness as the finance ministry cautioned the re-emergence of the twin deficit problem in the economy, with higher commodity prices and rising subsidy burden leading to an increase in both fiscal deficit and current account deficit. It is also the first time the government has explicitly talked about the possibility of fiscal slippage in the current fiscal year. Meanwhile, the government has extended the productivity-linked incentive scheme for the telecom industry by another year and has expanded its scope to cover design-led manufacturing. The Centre will provide additional incentives of over Rs 4,000 crore under the amended scheme. There will be some reaction in metal industry stocks Industry body ISSDA termed the government's move to impose duty on steel products as knee jerk action which came as a shock to domestic steel industry.

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

Nifty Top volumes

• NTPC has started Commercial Operation of fourth part capacity of 47.52 MW out of 296 MW Fatehgarh Solar PV Project at Jaisalmer, Rajasthan, with effect from June 19, 2022.   
• UPL has purchased 27,50,000 equity shares of Kerala Enviro Infrastructure, an associate of UPL, taking its holding from 23.32% to 31.07%. 
• Maruti Suzuki India has opened bookings for the country's most awaited compact SUV - All-New Hot and Techy Brezza.
• Wipro and Avesthagen have entered into a four-year strategic alliance, for making Avesthagen's genetic testing portfolio commercial.