Domestic Indices trade higher with gains of half percent

Indian equity markets traded higher with gains of half percent in late morning deals on account of buying by funds and retail investors. Hectic buying in Mahindra & Mahindra, Tata Motors, Power Grid, Bajaj Finserv and Hindustan Unilever companies’ stocks helped the markets to trade higher. Meanwhile, broader indices were also trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.50-0.65%. Sentiments got boost as NITI Aayog CEO BVR Subrahmanyam said that India has become the fourth largest economy in the world, overtaking Japan. He added that the overall geopolitical and economic environment is favourable to India. All the sectoral indices on the BSE were trading in green led by Power, Auto, IT, Industrials and Capital Goods. 

On the global front, Asian markets were trading mostly in red as investors assessed U.S. President Donald Trump’s postponement of 50% tariffs on European Union imports. Back home, in the stock specific development, Eternal plunged on reports of passive outflows following index weightage cuts by global index providers FTSE Russell and MSCI. 

The BSE Sensex is currently trading at 82135.64, up by 41.56 points or 0.51% after trading in a range of 81867.23 and 82492.24. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.51%, while Small cap index up by 0.65%.

The top gaining sectoral indices on the BSE were Power up by 1.02%, Auto up by 0.95%, IT up by 0.88%, Industrials up by 0.87% and Capital Goods up by 0.79%, while there were no losers. 

The top gainers on the Sensex were Mahindra & Mahindra up by 2.05%, Tata Motors up by 1.84%, Power Grid up by 1.33%, Bajaj Finserv up by 1.29% and Hindustan Unilever up by 1.18%. On the flip side, Eternal down by 3.45%, Ultratech Cement down by 0.81%, Kotak Mahindra Bank down by 0.28%, Sun Pharma down by 0.12% and Maruti Suzuki down by 0.02% were the top losers.

Meanwhile, with an aim to help the exchequer to tide over challenges posed by US tariffs and increased spending on defence due to the conflict with Pakistan, the Reserve Bank of India (RBI) has announced a record Rs 2.69 lakh crore dividend to the government for FY25, 27.4 per cent higher than 2023-24. During fiscal 2023-24, the central bank had transferred Rs 2.1 lakh crore dividend to the government, meanwhile, for 2022-23 it was Rs 87,416 crore. RBI has said that the transferable surplus for the year (2024-25) has been arrived at on the basis of the revised Economic Capital Framework (ECF) as approved by the Central Board in its meeting held on May 15, 2025.

RBI’s revised EFC stipulates that the risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 7.50 to 4.50 per cent of its balance sheet. The CRB was increased to 6 per cent for FY2022-23 and to 6.50 per cent for FY 2023-24. RBI said that based on the revised ECF, and taking into consideration the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 per cent. Further, giving details about the revised ECF, the RBI added that the computation of market risk buffer requirement to adopt an integrated approach, wherein the off-balance sheet portfolio is also reckoned, together with the on-balance sheet portfolio. The computation of market risk buffer requirement may also include investments in Foreign Currency Assets in minor currencies.

Moreover, with respect to the surplus distribution policy, any available equity in excess of 7.5 per cent of balance sheet (B/S) size (after considering shortfall in market risk buffers, if any) may be written back from the Contingency Fund to income. Meanwhile, according to the revised ECF, in case, the available equity is below the lower bound of its requirement, no surplus will be transferred to the government till at least the minimum level of Required Realised Equity is achieved. The government aims to bring down the fiscal deficit during 2025-26 to 4.4 per cent of the GDP from 4.8 per cent estimated for the preceding fiscal.

The CNX Nifty is currently trading at 24977.40, up by 124.25 points or 0.50% after trading in a range of 24900.50 and 25079.20. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 2.05%, Mahindra & Mahindra up by 1.97%, Tata Motors up by 1.84%, Bajaj Auto up by 1.82% and Hindalco up by 1.64%. On the flip side, Eternal down by 3.63%, Ultratech Cement down by 0.73%, JSW Steel down by 0.72%, Shriram Finance down by 0.39% and Kotak Mahindra Bank down by 0.37% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 320.6 points or 1.36% to 23,280.66, Jakarta Composite plunged 57.6 points or 0.8% to 7,156.56, Shanghai Composite weakened 8.12 points or 0.24% to 3,340.25, Straits Times fell 13.87 points or 0.36% to 3,868.55 and Taiwan Weighted lost 115.67 points or 0.54% to 21,536.57. However, KOSPI increased 32.33 points or 1.25% to 2,624.42 and Nikkei 225 surged 330.03 points or 0.89% to 37,490.50.