Indian markets closed higher on Tuesday, driven by strong buying in banking, financial, and auto stocks, supported by favorable global market trends. However, a cautious start is anticipated today due to weak global cues. Some optimism may emerge from IMF executive director Krishnamurthy V Subramanian's statement that India's economy could grow to $55 trillion by 2047, provided it maintains an 8% real growth rate and keeps inflation around 5%. Investors will also take note of the Labour Ministry's report indicating that the EPFO registered a net addition of 19.29 lakh members in June 2024, a 7.86% increase from June 2023, attributed to more employment opportunities and better awareness of employee benefits.

Meanwhile, the Reserve Bank of India Governor Shaktikanta Das has stated that inflation must stabilize around 4% before any rate cuts can be considered. The inflation rate in July fell below the target for the first time since 2019 but is expected to rise again by September. External Affairs Minister S. Jaishankar highlighted India’s increasing focus on East Asia, calling it a natural extension of the country's Act East policy. Telecom stocks could see movement following the TRAI report, showing India’s teledensity increased to 85.69% by March 2024, marking an annual growth rate of 1.39%.

Mining sector stocks may face pressure after Moody's warned that a Supreme Court ruling on royalties and taxes could negatively impact companies like Tata Steel and Vedanta. Additionally, a private report noted that the sale of life insurance policies in rural areas by top insurers declined in FY24. Orient Technologies' IPO opens today, while Interarch Building Products' IPO closes for public subscription.

Internationally, US markets fell on Tuesday, snapping their recent winning streak ahead of the Jackson Hole Economic Symposium. Asian markets are also trading lower, tracking Wall Street's losses.

On the domestic front, financial stocks surged on Tuesday, leading to gains across Indian equity markets, supported by positive global cues. Expectations are high that US Fed Chair Jerome Powell will provide clarity on potential rate cuts during the Jackson Hole Symposium. RBI data showed an increase in foreign direct investment to $6.9 billion in Q1 2024-25, boosted by a 26.4% rise in gross inward FDI. Domestic sentiment remained strong, supported by RBI’s latest bulletin, which highlighted improved rural consumption and demand. Finance Minister Nirmala Sitharaman urged public sector banks to mobilize deposits to fund credit growth. Consequently, the BSE Sensex rose by 378.18 points to 80,802.86, and the Nifty gained 126.20 points, closing at 24,698.85.