Markets extend gains in late trade

Indian equity benchmarks have extended their gains in late trade buoyed by buying in HDFC Bank, Reliance Industries and L&T. The strength came on Dalal Street as traders opted to buy stocks at lower levels following the recent pullback. Besides, an optimism raised in domestic markets as finance ministry in its monthly review report suggested that there is room for further easing of interest rate by the Reserve Bank of India (RBI) with inflation being comfortably below the central bank's median target of 4 per cent. The report added that Indian economy has the look and feel of ‘steady as she goes’ for the current fiscal, even as it flagged slowing credit growth. It said the first quarter of fiscal 2025-26 (FY26) presents a picture of resilient domestic supply and demand fundamentals. The optimism over resilient economy has helped to offset the worries over uncertainties about the India-US interim trade deal.

On the global front, Asian markets were trading mixed as investors awaits the outcome of ongoing U.S.-China talks in Stockholm. Meanwhile, all European markets were trading higher with sentiment underpinned by positive earnings news and eased worries of a trade war.

The BSE Sensex is currently trading at 81327.18, up by 436.16 points or 0.54% after trading in a range of 80575.45 and 81337.09. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.87%, while Small cap index was up by 0.99%.

The top gaining sectoral indices on the BSE were Realty up by 1.73%, Telecom up by 1.64%, Industrials up by 1.25%, Basic Materials up by 1.06% and Healthcare up by 1.04%. Meanwhile, there were no losers on BSE sectoral index.

The top gainers on the Sensex were Asian Paints up by 2.25%, Larsen & Toubro up by 2.13%, Bharti Airtel up by 1.64%, Reliance Industries up by 1.44% and Tata Motors up by 1.36%. On the flip side, TCS down by 0.65%, Axis Bank down by 0.60%, Titan Company down by 0.50%, ITC down by 0.24% and Eternal down by 0.20% were the top losers.

Meanwhile, Crisil Intelligence has said that the revenue growth of India's corporate sector is estimated at a modest 4-6 per cent in the first quarter of this fiscal year (Q1FY26), down from about 7 per cent in the previous two quarters, due to sluggish performance by power, IT services and steel sectors. The power, coal, IT services and steel sectors collectively account for a third of the revenue of over 600 companies analysed. Nevertheless, five sectors -- pharmaceuticals, telecom services, organised retail, aluminium and airline -- likely drove revenue growth for India Inc in the first quarter. 

It said the steel sector's revenue is expected to have grown a moderate 1-3 per cent on-year, due to planned maintenance shutdowns at major steel mills and a 2-4 per cent on-year decline in prices. On the other hand, the auto sector's revenue is estimated to rise by 4 per cent on-year owing to higher retail sales, partially offset by high inventory. It said an increase in prices stemming from changes in product mix and higher export realisations likely helped revenue grow. The construction sector revenue is expected to climb up 6 per cent on-year as engineering, procurement and construction (EPC) companies benefited from a low base effect caused by disruptions from general elections in the first quarter of last fiscal despite no significant increase in the Union Budget allocation for the sector. 

It said in the first quarter, revenue for pharmaceuticals sector is seen up 9-11 per cent on-year, higher than corporate India's revenue growth for the past 10 quarters, driven by strong export demand and a stable domestic market. It further said telecom services revenue is expected to grow 12 per cent on-year, fuelled by higher realisations of around 11 per cent on account of costlier subscription plans. Organised retail revenue likely rose 15-17 per cent in the first quarter, led by the value fashion and food and grocery segments. Revenue expansion in the steel, cement and FMCG sectors was likely driven by volume growth of 7-9 per cent, 3-4 per cent and 4-5 per cent respectively.

It further said in the cement sector, a low base, the pre-monsoon construction spree and healthy domestic demand pushed volume higher, despite the shutdown of a few mills, while a pick-up in rural demand supported the FMCG sector's volume growth. Aluminium sector's revenue is seen up at 23 per cent, owing to higher domestic demand, particularly through transmission lines, higher domestic output after Bharat Aluminium Company's expansion, more export opportunities from lower trade volatility between major economies, and an improvement in realisations due to a higher share of downstream products. Likewise, airline revenue is expected to rise 15 per cent on-year, driven by an increase of 10-12 per cent in volume owing to expanded supply on account of reduced aircraft groundings and addition of new aircraft.

The CNX Nifty is currently trading at 24808.45, up by 127.55 points or 0.52% after trading in a range of 24598.60 and 24828.15. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Jio Financial Services up by 3.87%, Asian Paints up by 2.06%, Larsen & Toubro up by 2.05%, Bharti Airtel up by 1.66% and Eicher Motors up by 1.61%. On the flip side, SBI Life Insurance Company down by 1.05%, TCS down by 0.70%, Axis Bank down by 0.52%, Eternal down by 0.46% and Titan Company down by 0.45% were the top losers.

Asian markets are trading mixed; Jakarta Composite gained 55.49 points or 0.72% to 7,670.26, KOSPI increased 21.05 points or 0.65% to 3,230.57 and Shanghai Composite strengthened 11.77 points or 0.33% to 3,609.71, while Hang Seng declined 84.13 points or 0.33% to 25,478.00, Nikkei 225 slipped 373.27 points or 0.92% to 40,625.00, Taiwan Weighted lost 211.46 points or 0.91% to 23,201.52 and Straits Times fell 19.24 points or 0.45% to 4,221.90.

All European markets were trading higher; UK’s FTSE 100 increased 33.51 points or 0.37% to 9,114.95, France’s CAC rose 87.32 points or 1.12% to 7,888.20 and Germany’s DAX gained 289.04 points or 1.21% to 24,259.40.