Indian equity benchmarks resumed northward journey after a day's break and ended with solid gains with frontline gauges recapturing their crucial 74,600 (Sensex) and 22,600 (Nifty) levels. The markets started on a positive note and extended gains as the day progress amid positive global cues. Sentiments got a boost as economic think-tank National Institute of Public Finance and Policy (NIPFP) said it has estimated India's GDP growth at 7.1 per cent for the current fiscal, using high-frequency models. NIPFP said the Centre is on a fiscal consolidation path through buoyancy in taxes and revenue expenditure compression. Some optimism also came as S&P Global Ratings in the Asia-Pacific 2Q 2024 Banking Update stated that Indian banks' credit growth, profitability and asset quality would remain robust in current fiscal reflecting strong economic growth, but they may be compelled to slow down their loan growth as deposits are not growing at a similar pace. Markets extended gains in late afternoon deals and ended near day's high, after a private report estimates India's GDP growth at 6.6 per cent in the current fiscal helped by consumption expenditure, exports rebound and capital flows. It said the rapid growth of the middle-income class has led to rising purchasing power and even created demand for premium luxury products and services. Traders got support with a private report stating that intensifying heatwave is unlikely to significantly dent India's growth, even though it could cause some disruption in construction and farm activity. Traders overlooked report that foreign investors pulled out domestic equities worth Rs 6,300 crore in April, (till April 26) on concerns over tweaks in India's tax treaty with Mauritius and sustained rise in US bond yields. Data with the depositories showed this came following a whopping net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Finally, the BSE Sensex rose 941.12 points or 1.28% to 74,671.28 and the CNX Nifty was up by 223.45 points or 1.00% points to 22,643.40.

The US markets ended in green on Monday as markets continued to benefit from the upward momentum seen last week, which came amid a positive reaction to upbeat tech earnings. Shares of Tesla (TSLA) skyrocketed by 15.3 percent after the electric vehicle maker said local Chinese authorities removed restrictions on its cars. However, overall trading activity was somewhat subdued as traders look ahead to the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to leave interest rates unchanged, but the accompanying statement and Fed Chair Jerome Powell's post-meeting press conference may shed additional light on the outlook for rates. Recent economic data has tamped down expectations of a near-term rate cut, with the central bank now seen as likely to leave rates unchanged until at least September. On the sectoral front, tobacco stocks showed a significant move to the upside on the day, driving the NYSE Arca Tobacco Index up by 1.5 percent. Considerable strength was also visible among utilities stocks, as reflected by the 1.4 percent gain posted by the Dow Jones Utilities average. Biotechnology, telecom and commercial real estate stocks also saw notable strength, while most of the other major sectors showed only modest moves.

Crude oil futures ended lower on Monday as worries about growth and outlook for oil demand amid rising possibility of the Federal Reserve delaying interest rate cuts, and ceasefire talks between Israel and Hamas weighed on the commodity's prices. U.S. Secretary of State Antony Blinken said that Israel must still do more to boost humanitarian aid to Gaza. He emphasized the need for a difficult cease-fire deal to alleviate the humanitarian crisis in Gaza. Benchmark crude oil futures for June delivery fell $1.22 or 1.45% to settle at $82.63 a barrel on the New York Mercantile Exchange. Brent crude for June delivery dropped $1.1 or 1.22% to $88.4 per barrel on London's Intercontinental Exchange.

Indian rupee ended lower against the U.S. dollar on Monday as investors remained cautious ahead of the U.S. Federal Reserve's monetary policy decision. Traders were worried with report that foreign investors pulled out domestic equities worth Rs 6,300 crore in April, (till April 26) on concerns over tweaks in India's tax treaty with Mauritius and sustained rise in US bond yields. Data with the depositories showed this came following a whopping net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Besides, apex exporters body FIEO said the escalating geopolitical tension may have implications for the country's exports in the first quarter of 2024-25 as it is likely to impact global demand. On the global front, the yen jumped against its peers on Monday after it slid past 160 per dollar earlier in the session, with traders citing dollar-selling intervention by Japanese banks as a trigger for its bounce. Finally, the rupee ended at 83.45 (Provisional), weaker by 7 paise from its previous close of 83.38 on Friday.

The FIIs as per Friday's data were net sellers in equity segment, while they were buyers in debt segment. In equity segment, the gross buying was of Rs 15225.18 crore against gross selling of Rs 17598.02 crore, while in the debt segment, the gross purchase was of Rs 1202.52 crore with gross sales of Rs 1108.39 crore. Besides, in the hybrid segment, the gross buying was of Rs 8.12 crore against gross selling of Rs 21.35 crore.

The US markets ended higher on Monday amid suspected intervention as investors embarked on what promises to be an action-packed week. Asian markets are trading in green on Tuesday as investors awaited a slew of economic data, corporate earnings and the US Federal Reserve's policy meeting. Indian markets ended higher on Monday on the back of strong gains in banking stocks. Gains in the markets were also aided by an upbeat in US tech quarter earnings and a drop in US 10-year yield. Today, markets are likely to get flat-to-positive start tracking gains in global markets and on foreign fund inflows. Foreign institutional investors (FIIs) net bought Rs 169.09 crore shares on April 29, provisional data from the NSE showed. Sentiments will get a boost as the National Council of Applied Economic Research (NCAER) in its monthly economic review said that the Indian economy could grow faster than 7% in this financial year. Some support will come with a private report that India's services exports will increase to $800 billion by 2030 from $340 billion in 2023, making the external sector resilient to supply-side shocks and reducing rupee volatility. Traders may take note of report that Finance Minister Nirmala Sitharaman underscored the need for a stable government to achieve the goal of becoming Viksit Bharat by 2047. However, upside likely to remain capped as investors may want to adopt a cautious approach ahead of the key US Fed meet outcome and a trading holiday (Wednesday) in India. There may be some cautiousness as Crisil in its report said that India Inc is likely to log 4-6 per cent revenue growth in the January-March quarter of 2023-24, marking the slowest quarterly growth since recovery from the Covid-19 pandemic which began in September 2021. Traders may be concerned as apex exporters body FIEO said the escalating geopolitical tension may have implications for the country's exports in the first quarter of 2024-25 as it is likely to impact global demand. The global uncertainties caused by continuing war between Russia and Ukraine has impacted India's outbound shipments in 2023-24, which recorded a decline of 3.11 per cent to $437 billion. Imports too dipped by over 8 per cent to $677.24 billion. There will be some reaction in construction sector stocks as rating agency ICRA said India's construction sector entities' revenues are likely to grow by 12-15 per cent in the current financial year, while margins will expand by 25-50 bps. It further said that the government's infrastructure push will result in double-digit revenue growth for the construction industry in FY2025. On the earnings front, Indian Oil Corp, REC, Havells India, Exide Industries, Gravita India, Symphony, Neogen Chemicals, Adani Total Gas, Central Bank of India, and IFCI are among others to report their quarterly results later in the day.

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

Nifty Top volumes

• ICICI Bank has received approval for fund raising by way of issuances of debt securities including by way of NCDs in domestic markets upto an overall limit of Rs 25000 crore.
• Tata Motors has signed a MoU with South Indian Bank to offer convenient financing solutions to its commercial vehicle customers and dealerships.
• Bharti Airtel has registered 6.9 million customers using 5G service in the state of Karnataka.
• Ultratech Cement has reported 35.24% rise in consolidated its net profit at Rs 2258.58 crore for Q4FY24 as compared to Rs 1670.10 crore for the same quarter in the previous year.