Bourses continue gaining momentum in early afternoon session

Indian equity markets continued their gaining momentum in early afternoon session on account of buying in front line counters. Positive cues from other Asian markets also supported the domestic markets.  As for broader indices, the BSE Mid cap index and Small cap index traded with gains of over two percent each. Sentiments remained positive as India’s services sector activity expanded sharply in the month of February, boosted by improving domestic and international demand. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index jumped to 59.0 in February from 56.5 in January. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 58.8 in February as against 57.7 in January. On the global front, all Asian markets are trading higher after U.S. Commerce Secretary Howard Lutnick suggested that the Trump administration may reach a tariffs compromise with Mexico and Canada. A potential deal is expected to involve reducing, at least partially, the new 25 percent tariffs on imports from both countries. 

The BSE Sensex is currently trading at 73804.08, up by 814.15 points or 1.12% after trading in a range of 72894.05 and 73848.49. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 2.35%, while Small cap index was up by 2.26%.

The top gaining sectoral indices on the BSE were Utilities up by 3.99%, Power up by 3.37%, PSU up by 2.68%, Metal up by 2.63% and Telecom was up by 2.60%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Adani Ports up by 4.97%, Power Grid up by 4.45%, Mahindra & Mahindra up by 4.40%, NTPC up by 3.94% and Tata Steel up by 3.63%. On the flip side, Bajaj Finance down by 2.31%, HDFC Bank down by 0.65%, Indusind Bank down by 0.40% and Bajaj Finserv down by 0.18% were the top losers.

Meanwhile, India’s services sector activity expanded sharply in the month of February, boosted by improving domestic and international demand. New orders placed with Indian services companies rose at a faster rate, while the uptick in growth underpinned a quicker expansion in output and a substantial increase in employment during the reported month. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index jumped to 59.0 in February from 56.5 in January. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 58.8 in February as against 57.7 in January.

In order to accommodate for rising new business and alleviate capacity pressures, Indian services firms continued to pursue recruitment drives. Employment expanded sharply, and at one of the fastest rates seen since data collection began in December 2005. Despite ongoing increases in staff numbers, Indian service providers continued to see their backlogs piling up in February. Outstanding business volumes rose at the joint-fastest rate since last May, matching that seen at the start of 2025. 

On inflation front, labor was identified as a source of cost pressures - via additional recruitment, higher salaries and overtime payments. The companies also signaled greater outlays on food, material and packaging. However, the overall rate of cost inflation receded to a four-month low and was aligned with its historical trend. The rate of charge inflation was broadly similar to January, therefore remaining above its long-run average, as additional cost burdens had been passed on to the customers.

The CNX Nifty is currently trading at 22353.20, up by 270.55 points or 1.23% after trading in a range of 22067.80 and 22375.05. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 5.11%, Power Grid up by 4.45%, Mahindra & Mahindra up by 4.39%, Adani Enterprises up by 4.18% and NTPC up by 3.90%. On the flip side, Bajaj Finance down by 2.37%, HDFC Bank down by 0.63%, Grasim Industries down by 0.53%, Indusind Bank down by 0.36% and Shriram Finance down by 0.32% were the top losers.

All Asian markets are trading higher; Hang Seng advanced 549.35 points or 2.34% to 23,491.12, Taiwan Weighted added 275.02 points or 1.2% to 22,871.90, Jakarta Composite gained 154.45 points or 2.36% to 6,534.85, Nikkei 225 surged 87.06 points or 0.23% to 37,418.24, KOSPI increased 29.21 points or 1.14% to 2,558.13, Shanghai Composite strengthened 15.32 points or 0.46% to 3,339.53 and Straits Times was up by 12.77 points or 0.33% to 3,903.53.