Domestic indices add more gains in late morning deals

Domestic equity indices added more gains in late morning deals as market participants indulged in enlarging their positions. Hectic buying in ITC, Eternal, Power Grid, Infosys and Nestle helped the markets to magnify their gains. Traders were getting some encouragement as Union Minister of Commerce and Industry Piyush Goyal held a meeting with Howard Lutnick, the United States Secretary of Commerce, to discuss the prospects of a mutually beneficial trade agreement between the two nations. Most of sectoral indices on the BSE were trading in green led by FMCG, IT, TECK, Power and Oil & Gas. 

On the global front, Asian markets were trading mixed after US Treasury yields eased on improved US data and comments from a US Fed official that he still sees a path to interest rate cuts later this year. Back home, in the stock specific development, Honasa Consumer soared as its fourth-quarter profit beat estimates.

The BSE Sensex is currently trading at 81731.65, up by 779.66 points or 0.96% after trading in a range of 80897.00 and 81905.17. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.38%, while Small cap index up by 0.34%.

The top gaining sectoral indices on the BSE were FMCG up by 1.72%, IT up by 1.61%, TECK up by 1.19%, Power up by 0.87% and Oil & Gas up by 0.82%, while Healthcare down by 0.25% was the only losing index on BSE.

The top gainers on the Sensex were ITC up by 2.77%, Eternal up by 2.71%, Power Grid up by 2.35%, Infosys up by 2.05% and Nestle up by 1.99%. On the flip side, Sun Pharma down by 2.92% and Tata Motors down by 0.10% were the only losers.

Meanwhile, the rating agency ICRA in its latest report has highlighted that trading activity in index derivatives and options volume is showing signs of stabilisation after three consecutive months of decline triggered by regulatory interventions. ICRA pointed out that the stabilization in index derivatives and options volumes reflects strategic recalibrations by market participants. It added that while margin trading facility (MTF) exposures have retracted closer to Rs 71,000 crore from their December 2024 peak, given their strong correlation with market trends, a resurgence in investor confidence could drive the trajectory back towards the Rs 1 lakh crore mark. 

While the phased implementation of regulatory measures was begun from November 2024, ICRA noted that, this led to a sharp contraction of trading activity in index options with the average daily premium turnover declining by 18 per cent during the period between December 2024 to March 2025 as compared to the April to November 2024 period, meanwhile the number of options contracts traded fell by 60 per cent during the same period. Moreover, order volumes, critical for F&O brokerage, were moderately impacted (down 25-35 per cent). However, despite this, the rating agency noted that trading activity remains above historical levels.

It has warned that overall activity remains highly sensitive to future regulatory developments as the adjustments in lot sizes and the rationalisation of weekly expiries have shifted trading towards longer-tenure contracts, notably reducing participation from smaller investors. It also highlighted that during the March 2025, the number of investors with a monthly premium turnover below Rs 10,000 on the NSE dropped by 49 per cent YoY, while those in the Rs 10,000 to Rs 1 lakh crore declined by 37 per cent. Meanwhile, the investor count with higher monthly premium turnovers was less impacted. Further, it added that the move to a single weekly index derivative per exchange has also diversified market participation and is expected to foster healthier competition.

The CNX Nifty is currently trading at 24882.00, up by 272.30 points or 1.11% after trading in a range of 24614.05 and 24909.05. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were ITC up by 2.80%, Eternal up by 2.70%, Power Grid up by 2.29%, Infosys up by 2.20% and Nestle up by 1.99%. On the flip side, Sun Pharma down by 2.86% and Tata Motors down by 0.03% were the top losers.

Asian markets were trading mixed; Shanghai Composite weakened 1.36 points or 0.04% to 3,378.83, Straits Times fell 7.16 points or 0.18% to 3,872.93, KOSPI dropped 0.33 points or 0.01% to 2,593.34 and Taiwan Weighted lost 54.25 points or 0.25% to 21,616.71. However, Hang Seng advanced 149.31 points or 0.63% to 23,693.62, Jakarta Composite gained 25.99 points or 0.36% to 7,192.97 and Nikkei 225 surged 219.51 points or 0.59% to 37,205.38.