Bourses continue gaining momentum in early afternoon session

Indian equity markets continued their gaining momentum in early afternoon session even after negative cues from other Asian markets. Traders took note of report that Commerce and Industry Minister Piyush Goyal said that India's services exports are registering healthy growth rates and the sector should aspire to reach $450 billion in exports, overtaking merchandise shipments, in the next financial year. Sector wise, oil and gas sector remained in focus as Petroleum Minister Hardeep Singh Puri has said that oil and gas companies will not face any new taxes like the windfall profits tax after the coming into effect of a new law that promises stability of fiscal regime. Parliament has passed the Oilfields (Regulation and Development) Bill, 2024 that provides policy stability to investors, decriminalises provisions and promotes ease of doing business. On the global front, Asian markets are trading mostly in red. Lingering concerns over tariffs and the health of the global economy continue to hurt market sentiment.  

The BSE Sensex is currently trading at 76934.09, up by 586.03 points or 0.77% after trading in a range of 76095.26 and 76963.30. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.06%, while Small cap index was up by 1.55%.

The top gaining sectoral indices on the BSE were Utilities up by 1.96%, Telecom up by 1.70%, Industrials up by 1.38%, Healthcare up by 1.37% and Auto was up by 1.33%, while Consumer Durables down by 0.23% and Metal down by 0.16% was the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.22%, NTPC up by 2.15%, Larsen & Toubro up by 2.14%, Nestle up by 2.12% and Kotak Mahindra Bank up by 2.04%. On the flip side, Infosys down by 1.31%, Indusind Bank down by 1.30%, Bajaj Finserv down by 0.62%, Titan Company down by 0.45% and Tata Steel down by 0.25% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said that the dominance of foreign airlines on international routes presents a significant growth opportunity for Indian carriers. It said international air passenger traffic for Indian carriers is likely to grow by 15-20 per cent in FY2025 and FY2026, while domestic passenger traffic is expected to grow at a slower rate of 7 to 10 per cent per year. The growth is supported by increasing e-visa and visa-on-arrival coverage, along with the Indian government's push for theme-based tourist centres and iconic destinations. 

According to the report, international air passenger traffic from and to India reached 56.9 lakh in the first nine months of FY2025, reflecting an 11.4 per cent year-on-year increase and a 9.2 per cent rise compared to pre-Covid levels of FY2020. Indian carriers saw a 40.7 per cent increase in international passenger traffic over pre-Covid levels, highlighting their rapid growth. A major shift in the industry has been the rise of low-cost carriers (LCCs), which now account for 72 per cent of the total international passenger traffic for Indian carriers in 9M FY2025. This marks a significant change from previous years when full-service carriers (FSCs) dominated international routes. 

However, the report said Indian carriers also face multiple challenges, including restrictive policy regimes, slow reforms, and inadequate aviation infrastructure, which have historically limited their expansion on international routes.  As a result, it said foreign airlines have maintained a stronghold, with a market share ranging between 55 per cent and 60 per cent over the past three years. But, it said there is significant potential for Indian carriers to capture a larger share of the market. 

The CNX Nifty is currently trading at 23358.45, up by 167.80 points or 0.72% after trading in a range of 23132.80 and 23370.85. There were 40 stocks advancing against 9 stocks declining on the index, while 1 stock remained unchanged. 

The top gainers on Nifty were Bajaj Finance up by 3.25%, SBI Life up by 2.28%, Nestle up by 2.17%, NTPC up by 2.12% and Larsen & Toubro up by 2.10%. On the flip side, Infosys down by 1.42%, Indusind Bank down by 1.35%, Trent down by 1.01%, Hindalco down by 0.65% and Bajaj Finserv down by 0.64% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 446.77 points or 1.88% to 23,773.18, Taiwan Weighted lost 168.16 points or 0.76% to 22,209.10, Jakarta Composite plunged 136.52 points or 2.19% to 6,245.15, Nikkei 225 slipped 74.82 points or 0.2% to 37,677.06, Shanghai Composite weakened 37.47 points or 1.11% to 3,371.48 and Straits Times was down by 3.64 points or 0.09% to 3,926.85. On the flip side, KOSPI was up by 6.03 points or 0.23% to 2,643.13.