Key gauges end higher on Wednesday

Indian equity benchmarks ended over half percent higher on Wednesday, following a positive trend in Asian markets after Japan secured a trade deal with the US. Following an initial uptick, the markets moved in a narrow range during the first half; however, strength in select heavyweights, particularly from the Telecom, Auto and banking sectors, propelled the indices higher.

Some of the important factors in today’s trade:

Financial inclusion index improves to 67 in March 2025: Reflecting deepening of financial inclusion and sustained financial literacy initiatives, the data released by the RBI has showed that the Financial Inclusion Index (FI-Index), which captures the extent of financial inclusion across the country, improved to 67.0 in March 2025 from 64.2 in March 2024.

PLI scheme saves Rs 1362 crore on drug imports till March 2025: Minister of State for Chemicals and Fertilisers, Anupriya Patel has said that imports of pharma raw materials worth Rs 1,362 crore have been avoided till March 2025 due to the creation of domestic manufacturing capacity for 25 identified items under the production-linked incentive (PLI) scheme for bulk drugs. 

India's FY26 GDP growth forecast trimmed to 6.3%: Traders overlooked India Ratings & Research (Ind-Ra) report in which it has trimmed India's growth projection for the current fiscal to 6.3 per cent, citing uncertainties around US tariffs and weak investment climate.  

Over Rs 44,000 crore released under MGNREGS so far: Rural Development Minister Shivraj Singh Chouhan informed the Lok Sabha that the Centre has released Rs 44,323 crore to states and union territories under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) so far.

Global front: European markets were trading higher amid prospects of an EU-US trade deal. Asian markets ended higher after U.S. President Donald Trump announced trade agreements with Japan and the Philippines, easing concerns about the tariff war. 

Finally, the BSE Sensex rose 539.83 points or 0.66% to 82,726.64 and the CNX Nifty was up by 159.00 points or 0.63% to 25,219.90.  

The BSE Sensex touched high and low of 82,786.43 and 82,279.73 respectively. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.24%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Telecom up by 1.14%, Auto up by 0.86%, Bankex up by 0.75%, TECK up by 0.74% and Healthcare up by 0.70%, while Realty down by 2.60%, FMCG down by 0.46% and Capital Goods down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.51%, Bharti Airtel up by 1.94%, Bajaj Finance up by 1.66%, Maruti Suzuki up by 1.15% and Bajaj Finserv up by 1.02%. On the flip side, Hindustan Unilever down by 1.19%, Bharat Electronics down by 0.68%, Ultratech Cement down by 0.68%, ITC down by 0.28% and Tata Steel down by 0.12% were the top losers.

Meanwhile, amid trade uncertainty and higher US tariffs, the Asian Development Bank (ADB) in its July 2025 Asian Development Outlook (ADO) has lowered India's growth forecast for FY26 to 6.5 per cent from 6.7 per cent. It noted that trade uncertainty and higher US tariffs are likely to impact exports and investment. Despite the downward revision from the April 2025 ADO, India remains one of the fastest-growing major economies in the world.

It said ‘This revision is primarily due to the impact of US baseline tariffs and associated policy uncertainty. In addition to the effects of lower global growth and the direct impact of additional US tariffs on Indian exports, heightened policy uncertainty may affect investment flows’. It said despite this, economic activity remains robust, with domestic consumption set to grow strongly on the back of revival of rural demand. It added services and agriculture sectors are expected to be key drivers of growth, the latter supported by a forecast of above-normal monsoon rains.

According to ADO, the central government's fiscal position remains strong, with higher-than-expected dividends from the Reserve Bank of India, and it is on track to meet the targeted reduction in its fiscal deficit. It said in FY27, growth is projected to improve to 6.7 per cent on account of rising investments, under the assumption of reduced policy uncertainty and favourable financial conditions, backed by recent reductions in the repo rate and the cash reserve ratio by the monetary authorities. It noted that the baseline expectations of lower crude oil prices will also support economic activity in FY26 and FY27.

The CNX Nifty traded in a range of 25,233.50 and 25,085.50. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.60%, Bharti Airtel up by 2.20%, Shriram Finance up by 2.16%, Apollo Hospital up by 1.97% and Bajaj Finance up by 1.62%. On the flip side, Tata Consumer Product down by 1.92%, Hindustan Unilever down by 0.92%, Infosys down by 0.76%, Grasim Industries down by 0.70% and Bharat Electronics down by 0.62% were the top losers.

European markets were trading higher; European markets were trading higher; UK’s FTSE 100, increased 43.86 points or 0.49% to 9,067.67, France’s CAC rose 93.59 points or 1.21% to 7,838.00 and Germany’s DAX gained 140.7 points or 0.59% to 24,182.60. 

Asian markets ended higher on Wednesday as latest trade deal announcements spurred expectations of further trade agreements as the August 1 deadline approaches. The largest ever US trade deal with Japan features a 15% tariff on Japanese exports and includes a commitment from Tokyo to invest $550 billion in the United States and open its markets for American vehicles, rice, and other agricultural goods. Trump claimed that the US would receive 90% of profits from the agreement and that the pact could generate hundreds of thousands of American jobs. Trump said the United States and the Philippines have finalized a new trade agreement with zero tariffs on US goods, while Filipino exports to the US will face a 19% tariff. Investors also cheered after US Treasury Secretary Scott Bessent stated that Federal Reserve Chair Jerome Powell need not resign before his term ends in May but he has a chance to cement his legacy by reforming the Fed's non-monetary functions. Seoul shares rose, led by technology shares ahead of earnings results from the so-called Magnificent Seven companies. But investors were cautious ahead of the last-minute talks with the United States on its sweeping tariff scheme. Chinese shares ended flat after reports that the United States and China will meet in Stockholm next week to discuss extending their tariff truce.