Firm trade persists over Dalal Street; Oil & Gas stocks rally

Indian equity markets closed on a positive note on Monday, amid sustained foreign fund inflows along with optimism ahead of major Q4 results. After an optimistic start, indices managed to keep their heads above water till the end of the trading session. The market rally was also driven by easing global trade tensions. Optimism around a potential India-U.S. trade deal further buoyed investor sentiments.

Some of the important factors in today’s trade: 

Indian economy in good shape despite challenging global environment: Expressing confidence over the Indian economy’s resilience, Chief Economic Advisor (CEA) Dr V Anantha Nageswaran has said the economy is in good shape despite the challenging global environment. 

Plans to boost export of agricultural and processed food products: The commerce ministry's arm Agricultural and Processed Food Products Authority (APEDA) is mulling formulation of strategies to boost export of agricultural and processed food products from India. 

US likely to push for tariff cuts, regulatory overhauls under proposed BTA with India: Global Trade Research Initiative (GTRI) said that the US is expected to push for sweeping changes in India's policies, ranging from tariff reductions to regulatory overhauls, that could benefit American firms and exporters, under the proposed bilateral trade agreement (BTA) with India.

Banking stocks: The banking sector stocks witnessed a decline during the trading session, with Kotak Mahindra Bank and State Bank of India dropping over 4% and 1%, respectively, after fall in their Q4 consolidated net profits. 

Mixed global cues limit gains over Dalal Street: European markets were trading mixed, while Asian markets also ended mixed, as investors awaited new updates on the tariff front and looked ahead to interest rate decisions from the Federal Reserve and the Bank of England, due later this week.

Finally, the BSE Sensex rose 294.85 points or 0.37% to 80,796.84, and the CNX Nifty was up by 114.45 points or 0.47% to 24,461.15.

The BSE Sensex touched high and low of 81049.03 and 80657.71 respectively. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index surged by 1.45%, while Small cap index was up by 1.23%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.95%, Auto up by 1.88%, Consumer Disc up by 1.58%, Utilities up by 1.50% and Energy up by 1.49%, while Bankex down by 0.90% was the only losing index on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 6.29%, Bajaj Finserv up by 3.73%, Mahindra & Mahindra up by 3.11%, Eternal up by 2.45% and ITC up by 1.62%. On the flip side, Kotak Mahindra Bank down by 4.57%, SBI down by 1.26%, Titan down by 0.73%, Indusind Bank down by 0.65% and Axis Bank down by 0.64% were the top losers.

Meanwhile, Union Minister of Tourism & Culture Gajendra Singh Shekhawat has said that India’s Meetings, Incentives, Conferences, and Exhibitions (MICE) Industry is set to be a major economic driver, generating high-quality jobs. Shekhawat said that India’s MICE industry is rapidly emerging as a global powerhouse, fuelled by robust economic growth, world-class infrastructure, and strong government backing. States across the country are unlocking tourism opportunities in their own unique ways and now, it’s time for India to position itself firmly on the global MICE map.

Highlighting the growing potential of the country in the MICE segment, Minister further noted that ‘with iconic venues like Bharat Mandapam, Yashobhoomi, Jio World Centre etc. and with special focus on MICE, we aim to elevate at least 10 Indian cities into the world’s top MICE destinations. Guided by Prime Minister Narendra Modi’s visionary leadership, and with states like Rajasthan leading through legacy and innovation, India is poised to become the world’s most admired tourism and events destination.’

Meanwhile, the India MICE market generated a revenue of $49,402.6 million in 2024 and is expected to reach $103,686.5 million by 2030 while registering a growth of 13% CAGR. This growth is fuelled by the recent developments in MICE-ready destinations coming up in cities like Varanasi, Khajuraho, Kochi etc. Over the last decade, India has shown a tremendous growth curve in infrastructure with be it the construction of roads over 1,50,000 km, new railway stations, semi high-speed trains, inland waterways, more than 150 operational airports and over 2.48 million hotel rooms. Further, India's hosting of G20 nations has reinforced India’s growing venue network and regional tourism potential.

The CNX Nifty traded in a range of 24400.65 and 24526.40. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 7.03%, Adani Ports & SEZ up by 6.31%, Trent up by 4.32%, Shriram Finance up by 4.08% and Bajaj Finserv up by 3.48%. On the flip side, Kotak Mahindra Bank down by 4.59%, JSW Steel down by 1.82%, ONGC down by 1.73%, SBI down by 1.25% and Dr. Reddy's Lab down by 0.98% were the top losers.

European markets were trading mixed; France’s CAC fell 44 points or 0.57% to 7,726.48, while Germany’s DAX gained 138.43 points or 0.6% to 23,225.08.

Asian markets settled mixed in thin trade on Monday as markets in Japan, Hong Kong, mainland China and South Korea were closed for public holidays. Meanwhile, persistent uncertainty over US-China trade talks kept market sentiments mixed. US President Donald Trump said aboard Air Force One that his administration was engaged in trade talks with multiple countries, including China, with a fair trade deal being the primary objective. While he confirmed there were no immediate plans to speak directly with Chinese President Xi Jinping, he said discussions between US and Chinese officials were continuing.