Markets maintain gains in late trade

Indian equity markets continued to trade higher in late afternoon session supported by widespread buying. Investor sentiments remained upbeat after ICRA Analytics’ report showed that the Assets Under Management (AUM) of the Indian mutual fund (MF) industry touched Rs 70 trillion as of March 2025, marking a 22.5 per cent year-on-year growth. It added that AUM of open-ended schemes like index funds and exchange-traded funds (ETFs) witnessed a growth of 23.80 per cent in April 2025, followed by open-ended equity fund. 

On the global front, Asian equity markets were trading mixed despite a retreat in U.S. Treasury yields and comments from a Federal Reserve official that the U.S. central bank might lower interest rates in 2025 if tariff issues are resolved. European equity markets were trading mostly in green after the release of better-than-expected regional data. The Germany's Gross domestic product registered a quarterly growth of 0.4 percent compared to the previous estimate of 0.2 percent expansion. 

The BSE Sensex is currently trading at 81749.94, up by 797.95 points or 0.99% after trading in a range of 80897.00 and 81905.17. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.65%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were FMCG up by 1.45%, IT up by 1.24%, Utilities up by 1.03%, Power up by 1.03% and Oil & Gas up by 0.99%, while Healthcare down by 0.11% was the lone losing index on BSE.

The top gainers on the Sensex were Eternal up by 4.56%, ITC up by 2.39%, Power Grid Corporation of India up by 2.30%, Bajaj Finserv up by 2.16% and Axis Bank up by 1.83%. On the flip side, Sun Pharma Industries down by 2.77% was the sole losers.

Meanwhile, the UK for the first time has agreed to accord non-discriminatory treatment to Indian companies in its public procurement system under the free trade agreement (FTA) between the two countries. On May 6, 2025, the two countries announced conclusion of negotiations for the FTA. It will be implemented next year. 

Under the UK’s Social Value law, the British government departments require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts. According to the UK government, the trade pact will give UK businesses unique and unprecedented access to India’s public procurement market, comprising about 40,000 tenders with a value of at least 38 billion pounds a year.

On the other hand, India has agreed to allow British companies to participate in public procurements only in the non-sensitive sectors. The UK firms, however, will not be allowed to participate in procurements by state government entities and local bodies. UK-based suppliers would be allowed to bid for domestic tenders above the agreed thresholds (above Rs 200 crore) as deemed Class II local suppliers under public procurement. Carve out is also provided for India’s ‘Make in India policy’ as well as medium and small enterprises.

Earlier, India opened the government procurement segment in the comprehensive trade pact with the UAE. Under that pact, UAE firms are allowed to participate in procurement tenders worth over Rs 200 crore. In 2020, the government modified public procurement norms to give maximum preference to companies whose goods and services have 50 per cent or more local content to promote ‘Make in India’. The revised Public Procurement (Preference to Make in India), Order 2017, has introduced a concept of Class-I, II and non-local suppliers, based on which they will get preference in government purchases of goods and services.

The CNX Nifty is currently trading at 24866.35, up by 256.65 points or 1.04% 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 Eternal up by 4.58%, HDFC Life Insurance up by 2.93%, JIO Financial Services up by 2.79%, ITC up by 2.41% and Power Grid Corporation of India up by 2.39%. On the flip side, Sun Pharma Industries down by 2.72% and Grasim Industries down by 0.24% were the only losers.

Asian markets are trading mixed; Hang Seng advanced 56.95 points or 0.24% to 23,601.26, Jakarta Composite gained 36.52 points or 0.51% to 7,203.50, Nikkei 225 surged 174.6 points or 0.47% to 37,160.47 and Straits Times rose 0.1 points to 3,880.19, while KOSPI dropped 1.58 points or 0.06% to 2,592.09, Taiwan Weighted lost 18.72 points or 0.09% to 21,652.24 and Shanghai Composite weakened 31.82 points or 0.95% to 3,348.37.

European markets were trading mostly in green; UK’s FTSE 100 increased 34.99 points or 0.4% to 8,774.25, Germany’s DAX gained 125.15 points or 0.52% to 24,124.32 and France’s CAC fell 2.44 points or 0.03% to 7,862.00.