Bulls tightened their grip on Dalal Street with Sensex recapturing its crucial 32,100 level, while Nifty ending just shy of 10,100 mark, ahead of the macro data of industrial production for July scheduled to be announced later in the day. In the extremely buoyant session of trade, benchmark equity indices after getting positive start, went on steadily gaining ground and halted only at day's high by close of trade. Sentiments remained up-beat since morning with report that direct tax collections in the first five months of the current fiscal grew 17.5% to Rs 2.24 lakh crore, mainly on account of income tax mop-up from individuals. This is 22.9% of the total budget estimates of direct taxes, which comprise personal income and corporate tax, for the current financial year. There was additional encouragement with the reports that government was expecting a double-digit improvement in India's rank in the global index on ease of doing business, likely to be announced by the World Bank next month, based on the feedback shared by the multinational organization. Some support also came with Former Reserve Bank of India's (RBI) governor Raghuram Rajan's statement that reviving stalled projects and a thrust on infrastructure will be the key to India reaching the 8% economic growth in the short-term. He added that India should focus on removing the bottlenecks on all stalled projects in order to achieve 8-9% growth. Adding to the optimism, global rating agency ARC Ratings, in its latest report has affirmed the BBB+ rating to the India and maintained a stable outlook on expectation of a strong economic growth. The rating agency also affirmed its A- foreign currency and A local currency country ceilings for the country. It has said that a solid outlook for economic dynamism continues to drive the sovereign ratings and added that India continues to enjoy solid economic performance and a strong medium term growth outlook, with real GDP growing 7.1% in FY2017. Finally, the BSE Sensex soared 276.50 points or 0.87% to 32,158.66, while the CNX Nifty was up by 87.00 points or 0.87% to 10,093.05.

The US markets closed higher on Tuesday, though gains were capped by unsteady trade in technology, after a brisk, broad-market run-up in the previous session. Tuesday's moves come after the S&P 500 and the Dow industrials logged their biggest one-day percentage gains in months on diminished anxieties about hurricanes, notably Hurricane Irma which hit Florida over the weekend, and tensions in the Korean Peninsula. Market participants are also looking for further signs that fiscal-stimulus measures promised by President Donald Trump during his presidential campaign may still have a chance of coming to fruition. On the economy front, job openings in the US set yet another record in July, climbing steadily despite the lowest unemployment rate in years. The Labor Department reported that openings edged up to 6.17 million in July from 6.12 million in June. The Dow Jones Industrial Average added 61.49 points or 0.28 percent to 22,118.86, the Nasdaq edged higher by 22.02 points or 0.34 percent to 6,454.28, and the S&P 500 gained 8.37 points or 0.34 percent to 2,496.48.

Crude oil futures recovering from early lows settled higher on Tuesday, after a report showed Opec output fell in August. Opec said production in August fell by 79,000 barrels a day (bpd) to 32.76 million as falling production from Venezuela, Iraq, the UAE and Saudi Arabia offset rising output from Nigeria. The report also highlighted a dip in non-Opec output, after several refineries along the Gulf Coast shut down as Hurricane Harvey tore through the U.S. oil heartland of Texas in August. However, gains were capped as investors braced for U.S. crude inventory due data expected to show a large build in stockpiles. Benchmark crude oil futures for October delivery rose 16 cents to settle at $48.23 a barrel on the New York Mercantile Exchange. Brent crude for October delivery rose 39 cents to $54.23 a barrel on the ICE.

Indian rupee extended their decline on Tuesday after suffering sharp slump in the last session, on overwhelming demand for the American currency from corporate and banks. Cautiousness also prevailed ahead of key economic data i.e. July IIP and August CPI data, scheduled to be released later in the day. Though, the significant gains in domestic equity markets helped to cap the losses in rupee. On the global front, the dollar held on to most of its gains on Tuesday, following a sharp rebound on improving investor risk sentimental worries over North Korea and Hurricane Irma receded. Finally, the rupee ended at 64.04, 11 paise weaker from its previous close of 63.93 on Monday.

The FIIs as per Tuesday's data were net sellers in equity segment, while they were net buyers in debt segment. In equity segment, the gross buying was of Rs 4042.99 crore against gross selling of Rs 4458.50 crore, while in the debt segment, the gross purchase was of Rs 630.95 crore with gross sales of Rs 289.19 crore.

The US markets extended their gains in the last session, led by financials on tax reform hopes and tech stocks after Apple's highly-anticipated product launches. The Asian markets taking cues from the US markets have extended gains on bets economic growth is strong enough to withstand heightened geopolitical tensions, though North Korea said it will accelerate its plans to acquire a nuclear weapon that can strike the U.S. homeland. The Indian markets rallied in last session supported by global cues and ahead of the key macro data. Today, the start is likely to be in green tailing positive global cues, though traders will be reacting to mixed macro data, while Index of Industrial Production (IIP) or factory output for the month of July 2017 stood at 1.2% compared to negative 0.1% in June 2017 and 5.2% in the similar month of the previous year, the retail inflation or Consumer Price Index (CPI) grew 3.36% in August 2017 as against 2.36% in July 2017 and 5.05% in the corresponding month of the previous year. Meanwhile, an Assocham-EY study has said that the government needs to focus on ways to push the growth of manufacturing sector if it wants to maintain a sustained GDP growth of 9-10 per cent per year. The report said that although implementation of the Goods and Services Tax (GST) has addressed several regulatory issues, state governments need to resolve issues like bureaucratic obstacles, obstructive regulations and policies to boost manufacturing sector. There will be some buzz in the telecom stocks, as the Telecom Commission (TC) has asked the inter-ministerial panel looking into the health of the telecom sector to consider ways for giving greater and immediate relief to telcos, which are facing high debt levels and falling revenue.

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

Nifty Top volumes

• NTPC has commissioned 40 MW out of 50 MW of Rojmal Wind Energy Project in Gujarat.
• M&M has unveiled its versatile Jeeto Minivan in Hyderabad for both urban and semi-urban last-mile transportation requirements.
• Zee Entertainment Enterprises is expanding its brand '&' to English movie channel, with the launch of its premium offering '& Prive HD'.
• ITC is looking to more than double the number of farmers in its e-Choupal network to 10 million by 2022.