Key gauges end higher for 2nd straight day

Rising for the second straight day, Indian equity benchmarks ended with strong gains on Thursday amid heavy buying by investors and fresh foreign fund inflows into shares. Following a flat start, the indices traded with volatility in the early-mid part of the session but picked up momentum in the afternoon session and settled near day's high points, following sharp gains in Realty, Auto and Industrials shares. 

Some of the important factors in trade:

Indian entities committed FDI worth $6 million in Azerbaijan & Turkiye in April: The Reserve Bank of India in its latest data has said that four Indian entities committed foreign direct investments worth nearly $6 million in Azerbaijan and Turkiye, accounting for a small part of the total $6.8 billion overseas investments proposed by Indian companies in April.

Foreign fund inflow: Foreign institutional investors (FIIs) were net buyers to the tune of Rs 931 crore in Indian equities on May 14, while domestic institutional investors (DIIs) also added Rs 316 crore, provisional data from the NSE showed. 

Crude oil drops: Oil prices fell on expectations for a U.S.-Iran nuclear deal that could result in sanctions easing, while a surprise build in U.S. crude oil inventories last week heightened investor concerns about oversupply. 

Rupee slumps against US Dollar: Indian rupee depreciated against the US dollar on Thursday, weighed down by demand for American dollars from importers. However, a surge in the domestic markets and overnight weakness in crude oil prices cushioned the downside.

Weak trend in global markets: European markets were trading mostly in red amidst fading enthusiasm regarding the de-escalation in global trade tensions. Asian markets settled mostly down on Thursday as a mood of caution prevailed as markets waited for further developments in trade negotiations as well as progress in the Iran nuclear deal.

Finally, the BSE Sensex rose 1200.18 points or 1.48% to 82,530.74, and the CNX Nifty was up by 395.20 points or 1.60% to 25,062.10.    

The BSE Sensex touched high and low of 82,718.14 and 80,762.16 respectively. There were 29 stocks advancing against 1 stock declining on the index. 

The broader indices ended in green; the BSE Mid cap index rose 0.67%, while Small cap index was up by 0.94%.

The top gaining sectoral indices on the BSE were Realty up by 1.87%, Auto up by 1.86%, Industrials up by 1.62%, Metal up by 1.60% and Consumer discretionary up by 1.57%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Tata Motors up by 4.16%, HCL Technologies up by 3.56%, Adani Ports &SEZ up by 2.60%, Eternal up by 2.36% and Maruti Suzuki up by 2.17%. On the flip side, Indusind Bank down by 0.16% was the lone loser.

Meanwhile, Indian defence exports being at all-time highs, the Defence Minister Rajnath Singh has said that India exported defence goods worth Rs 23,622 crore in 2024-25, a 34-fold rise as against just Rs 686 crore in 2013-14. The defence minister asserted that India's defence sector is growing stronger than ever, driven by the spirit of a self-reliant or Atmanirbhar Bharat.

As part of its 'Atmanirbhar' and Make in India plans, the government launched various schemes, including the production-linked incentive (PLI), in various sectors to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain, and reduce dependency on imports

The defence minister highlighted that country’s defence production has surged to historic highs led by government's thrust on the Make in India initiative. Besides, this rise in defence manufacturing has also led to substantial returns for investors in major defence manufacturing PSUs over the past years. He added the government is investing heavily in defence and aerospace manufacturing, with several defence hubs being set up and many global companies have either shared or shown intent to share critical defence and aerospace knowledge with India.

The Ministry of Defence data showed that wide range of items, including ammunition, arms, subsystems/systems, and parts and components, were exported to around 80 countries in the just-concluded financial year. Further, the government is now aiming for annual exports worth Rs 50,000 crore by 2029, thus strengthening its global footprint.

The CNX Nifty traded in a range of 25,116.25 and 24,494.45. There were 49 stocks advancing against 1 stock declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 6.17%, JSW Steel up by 4.82%, Tata Motors up by 4.30%, Trent up by 3.80% and Shriram Finance up by 3.38%. On the flip side, Indusind Bank down by 0.17% was the only loser.

European markets were trading mostly in red; France’s CAC fell 15.61 points or 0.2% to 7,821.18 and Germany’s DAX lost 35.15 points or 0.15% to 23,491.86, while UK’s FTSE 100 increased 6.3 points or 0.07% to 8,591.31.

Asian markets settled mostly down on Thursday following the mixed cues from Wall Street overnight as investors were awaiting a speech by Federal Reserve Chair Jerome Powell, as well as data on retail sales and PPI releases for clues on the US Federal Reserve's interest rate trajectory. Market sentiments weakened further despite the US-China trade deal, there is still some uncertainty over the Trump Administration's tariff moves against some of its major trading partners. Japan's Nikkei extended its retreat from a nearly 3-months peak as a stronger yen sent automaker shares sliding.