Indices end higher for 2nd consecutive day

Indian equity benchmarks continued their upward momentum for a second consecutive session and ended higher over half percent on Monday due to a host of positive triggers like India emerging as the fourth largest economy in the world and US President Donald Trump delayed 50 per cent EU tariffs to July 9. The early arrival of monsoon also added to the optimistic trend in the markets.

Some of the important factors in today’s trade:

RBI to give record dividend of Rs 2.69 lakh crore to Govt: 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.

India overtakes Japan to become the world's fourth largest economy: NITI Aayog CEO B V R Subrahmanyam said that India has become the fourth largest economy in the world, overtaking Japan. He said overall geopolitical and economic environment is favourable to India.

Rupee rises against US Dollar: Rising for the second straight session, Indian rupee jumped against the US dollar, buoyed by a positive trend in domestic equity markets and a weak American currency overseas

Inflow of foreign funds: The provisional data from the National Stock Exchange showed foreign portfolio investors turned net buyers of Indian equities on Friday after a day of selling, as they mopped up stocks worth Rs 1,794.59 crore. 

Global front: European markets were trading in green as U.S. President Donald Trump delayed the roll out of 50 percent tariffs on the European Union to July 9 from June 1, following a call from EU Commission President Ursula von der Leyen. Asian markets settled mostly down on Monday as U.S. President Donald Trump threatened to roll out 25 percent tariffs by the end of next month on smartphones made by Apple, Samsung Electronics Co. and other companies, if they are not manufactured in the U.S. 

Finally, the BSE Sensex rose 455.37 points or 0.56% to 82,176.45 and the CNX Nifty was up by 148.00 points or 0.60% to 25,001.15.    

The BSE Sensex touched high and low of 82,492.24 and 81,867.23 respectively. There were 22 stocks advancing against 8 stocks declining on the index. 

The broader indices ended in green; the BSE Mid cap index rose 0.56%, while Small cap index was up by 0.48%.

The top gaining sectoral indices on the BSE were Auto up by 1.04%, Industrials up by 0.98%, IT up by 0.95%, FMCG up by 0.93% and Capital Goods up by 0.91%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Mahindra & Mahindra up by 2.17%, Trent up by 1.75%, HCL Tech. up by 1.53%, Tata Motors up by 1.52% and ITC up by 1.49%. On the flip side, Eternal down by 4.51%, Ultratech Cement down by 0.47%, Power Grid Corporation down by 0.45%, Sun Pharma down by 0.45% and NTPC down by 0.32% were the top losers.

Meanwhile, NITI Aayog CEO B V R Subrahmanyam said that India has become the fourth largest economy in the world, overtaking Japan. He said overall geopolitical and economic environment is favourable to India. He said ‘We are the fourth largest economy as I speak. We are a $4 trillion economy as I speak’.

Citing IMF data, Subrahmanyam said India today is larger than Japan. He said ‘It is only US, China, Germany, which are larger than India and if we stick to what is being planned and what is being thought through, in 2.5-3 years, we will be the third largest economy’.

Regarding the US President Donald Trump's recent statement that he expects Apple iPhones that will be sold in the US to be manufactured in America and not India, or anyplace else, Subrahmanyam said ‘What the tariff will be, is uncertain. Given the dynamics, we will be cheap place to manufacture’. He also said that a second round of asset monetisation pipeline is being prepared and it will be announced in August.

The CNX Nifty traded in a range of 25,079.20 and 24,900.50. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 2.39%, JSW Steel up by 2.13%, Mahindra & Mahindra up by 2.07%, Trent up by 1.72% and Hindalco up by 1.68%. On the flip side, Eternal down by 4.59%, Ultratech Cement down by 0.60%, Kotak Mahindra Bank down by 0.51%, Power Grid Corporation down by 0.47% and NTPC down by 0.38% were the top losers.

European markets were trading in green; France’s CAC rose 88.88 points or 1.15% to 7,823.28 and Germany’s DAX gained 386.8 points or 1.64% to 24,016.38.

Asian markets settled mostly down on Monday tracking Wall Street's fall last Friday and as US President Donald Trump threatened to roll out 25% tariffs by the end of next month on smartphones made by Apple, Samsung Electronics Company, and other companies, if they are not manufactured in the United States. Even though some falls were limited by easing trade tensions between the US and the European Union after Trump extended a deadline on aggressive European tariffs until July 9. Chinese and Hong Kong shares fell, with automobile and Apple suppliers leading the decline. While, China's yuan strengthened after the country's central bank tightened the midpoint fixing. However, Japanese shares rallied on trade optimism ahead of chief trade negotiator Ryosei Akazawa's visit to the US for a third round of talks.