Indian equity benchmarks once again back on track with frontline gauges, erasing most of their previous session losses, settled almost at 32,000 (Sensex) and 9,900 (Nifty) levels. Markets traded with full traction throughout the session, as sentiments remained up-beat with NITI Aayog Vice Chairman Arvind Panagariya's statement that India's GDP could rise to about $8 trillion over the next 15 years if the country registers an economic growth of 8 percent annually and come very close to eliminating abject poverty entirely. Traders also took some encouragement with rating agency Fitch's latest report stating that new indirect tax regime Goods and Services Tax (GST) is likely to be beneficial for auto, cement and organised retail sectors, but will have a negative impact on oil and gas, and SME sectors. Rally got extended in last leg of trade with private report stating that India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from a new tax system and bolstered by an expected central bank interest rate cut. Finance Minister Arun Jaitley's statements that the GST is a win- win deal for all as it will expand the tax net, end inspector raj and bring down prices of goods too supported the sentiments. Pharma stocks remained on buyers' radar on report that the government is looking at introducing a new National Pharmaceuticals Policy and is already in the process of working out details. The oil & gas stocks too remained in action, as the government is likely to consider the sale of government's 51.11 per cent stake in Hindustan Petroleum Corp (HPCL) to Oil and Natural Gas Corporation (ONGC) for over Rs 28,000 crore. Finally, the BSE Sensex surged 244.36 points or 0.77% to 31,955.35, while the CNX Nifty was up by 72.45 points or 0.74% to 9,899.60.

The US markets closed higher on Wednesday, with the Dow joining the S&P 500 and Nasdaq at records. Better-than-expected results from Morgan Stanley helped to reaffirm optimism about the current economy and earnings season - factors crucial to supporting current levels considered lofty. This was despite lingering uncertainty around the Trump administration's ability to move forward with its fiscal agenda. The Atlanta Federal Reserve raised its second-quarter GDP estimate by one-tenth of a percentage point to a 2.5 percent annualized rate. The economy grew at a 1.4 percent pace in the first quarter. On the economy front, builders broke ground on more homes in June, and figures from a prior month were revised up, allaying fears that the housing recovery had stumbled in the spring. Housing starts were at a 1.22 million seasonally adjusted annual rate, 8.3% higher than in May and 2.1% higher for the year. May's data, originally reported as the lowest in eight months, was revised up to a 1.12 million annual pace. Builders also applied for more permits to construct homes, a good signal of increased activity ahead. The Dow Jones Industrial Average gained 66.02 points or 0.31 percent to 21,640.75, Nasdaq added 40.73 points or 0.64 percent to 6,385.04, while the S&P 500 edged higher by 13.22 points or 0.54 percent to 2,473.83. 

Crude oil futures extending their gains surged on Wednesday after a surprisingly large drop in U.S. oil inventories. A report from the Energy Information Administration (EIA) showed crude and gasoline stockpiles fell by more than expected last week, fuelling expectations that an uptick in demand during the second-half of the year would reduce some of the surplus supplies. EIA reported that domestic crude supplies fell by 4.7 million barrels for the week ended July 14. Gasoline stockpiles also fell by 4.4 million barrels, while distillate stockpiles declined by 2.1 million barrels last week. Benchmark crude oil futures for August delivery gained $0.72 or 1.6 percent to $47.12 on the New York Mercantile Exchange. In London, Brent crude for August delivery ended up by 1.82 percent at $49.73 a barrel on the ICE.

Indian rupee ended marginally higher on Wednesday, holding its highest level in over a month against the US currency. This is the third consecutive session when the rupee is traded higher against dollar. Sentiments got some support with NITI Aayog Vice Chairman Arvind Panagariya's statement that India's GDP could rise to about $8 trillion over the next 15 years if the country registers an economic growth of 8 percent annually and come very close to eliminating abject poverty entirely. Additionally, smart rally in the local equity markets coupled with dollar weakness against some currencies overseas also added to the positive milieu of Indian currency. On the global front, dollar scratched its way up from the 10-month lows hit earlier this week in subdued Wednesday trading that left the US currency advancing against European rivals but still shaky against its Japanese counterpart. Finally, the rupee ended at 64.28, 5 paise stronger from its previous close of 64.33 on Tuesday.

The FIIs as per Wednesday's data were net buyers in equity and debt segments both. In equity segment, the gross buying was of Rs 6645.22 crore against gross selling of Rs 6269.37 crore, while in the debt segment, the gross purchase was of Rs 1445.59 crore with gross sales of Rs 574.35 crore.

The US markets surged in last session with major averages climbing to new record highs in reaction to a report from the Commerce Department showing a bigger than expected rebound in housing starts in the month of June. The Asian markets have made an all green start after fresh all-time highs for U.S. equities spurred gains ahead of meetings from central banks in Japan and Europe. The BOJ is expected to go on bucking the recent hawkish tilt from its peers, leaving its unprecedented stimulus measures in place. The Indian markets made a good bounce back in last session, recovering most of their losses of previous session, supported by firm global cues and some upbeat earnings announcements. Today, the start is likely to remain in green on positive global cues. Markets will be getting some support with Finance Minister Arun Jaitley's statement, describing the Goods and Services Tax (GST) as a "win- win" deal for all as it will expand the tax net, end "inspector raj" and bring down prices of goods. Jaitley added that prices of goods have come down between four to eight per cent since its roll-out on July 1. Meanwhile, the government has said that tax rates under the Goods and Services Tax (GST) will not be revised unless there is an anomaly, but promised to go slow on enforcement actions in the first six months on genuine mistakes. Markets will also be getting some support with a private report that India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from a new tax system and bolstered by an expected central bank interest rate cut. The oil and gas stocks are likely to be in focus, after the government cleared the sale of Hindustan Petroleum to flagship explorer ONGC with the aim of creating an integrated oil company. There will be lots of important earnings announcements to keep the markets in action today.

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

Nifty Top volumes

• Dr. Reddy's Laboratories has launched Vozet Tablets in Indian market. The drug is indicated for the treatment of allergic Rhinitis and chronic Urticaria.
• UltraTech Cement has received its board's approval to set up greenfield integrated cement plant at Dhar in Madhya Pradesh with a capacity of 3.5 million tonne per annum.
• Tata Power Delhi Distribution, a JV of Tata Power and the Government of Delhi, has launched a dedicated digital awareness drive in the JJ clusters in its area of operations.
• Power Grid Corporation of India's wholly owned subsidiary - Power Grid Kala Amb Transmission has commissioned its project on July 12, 2017.