Post Session: Quick Review

Indian equity benchmarks ended marginally higher on Wednesday, ahead of the US Federal Reserve's monetary policy decision. After making slightly positive start, soon markets turned volatile as traders were cautious after US President Donald Trump said India may be hit with a tariff rate of 20% to 25%. However, indices added some gains and remained in positive territory throughout the session, supported by robust corporate earnings, particularly from Larsen & Toubro.

Some of the important factors in today’s trade:

IMF revises slightly upward India’s economic growth forecast to 6.4% for 2025: Traders took encouragement with International Monetary Fund’s statement that India is projected to grow at 6.4 per cent in fiscal year 2025 and 2026, and the country's stable growth is driven by a reform momentum supporting robust consumption growth and a push for public investment. 

US team to visit India on August 25 for next round of talks for trade pact: Traders took note of report that the US team will visit India on August 25 for the next round of negotiations for the proposed bilateral trade agreement between the two countries. 

EFTA commits to invest $100 billion under trade pact with India: Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that the four European nations group EFTA has committed to invest $100 billion under a trade pact with India and these investments are expected to flow into sectors such as infrastructure, manufacturing, and pharma.

Global front: European markets were trading mostly in green ahead of earnings release of big U.S. tech companies and Federal Reserve's rate decision. Asian markets ended mixed as Singapore central bank maintained its monetary policy after easing twice this year, as there are risks to growth from renewed trade conflicts and geopolitical shocks.

The BSE Sensex ended at 81481.86, up by 143.91 points or 0.18% after trading in a range of 81187.06 and 81618.96. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.17%, while Small cap index up by 0.17%. (Provisional)

The top gaining sectoral indices on the BSE were Industrials up by 1.31%, TECK up by 0.35%, IT up by 0.30%, FMCG up by 0.28% and Capital Goods up by 0.27%, while Realty down by 0.99%, Auto down by 0.64%, Telecom down by 0.42%, Energy down by 0.26%, and Metal down by 0.16% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 4.72%, Sun Pharma up by 1.26%, NTPC up by 1.26%, Maruti Suzuki up by 0.91% and Bharti Airtel up by 0.87%. On the flip side, Tata Motors down by 3.48%, Power Grid down by 1.07%, Bajaj Finserv down by 0.95%, Kotak Mahindra Bank down by 0.71% and Hindustan Unilever down by 0.68% were the top losers. (Provisional)

Meanwhile, the Crisil Ratings in its research report has said that revenue growth of 18 large states, which account for over 90 per cent of the gross state domestic product, is likely to witness a marginal uptick at 7-9 per cent to Rs 40 lakh crore this financial year (FY26). It said this is slightly higher than 6.6 per cent notched up in the last fiscal, though lower than the decadal growth of around 10 per cent.

The increase in revenue growth will be supported by steady GST collections and devolution by the Centre. Maharashtra, Gujarat, Karnataka, Tamil Nadu and West Bengal are among the 18 large states. The states’ revenue streams comprise two components, namely own tax revenue and transfers from the Centre. The own tax revenue of these states is expected to grow around eight per cent this financial year, driven by GST and liquor tax, with a modest growth in petroleum tax. 

Grants from the Centre are expected to recover and grow by three to four per cent due to higher outlay of centrally sponsored schemes. It mentioned the calculations assume India’s nominal GDP growth of nine per cent this fiscal. However, global uncertainties, domestic consumption patterns and inflationary trends can alter these estimates. It added to ensure sustainable revenue growth, the states will have to focus on expanding their own revenue and improving collection efficiency. 

The CNX Nifty ended at 24855.05, up by 33.95 points or 0.14% after trading in a range of 24771.95 and 24902.30. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Larsen & Toubro up by 4.68%, Sun Pharma up by 1.36%, Tata Consumer Products up by 1.36%, NTPC up by 1.26% and Maruti Suzuki up by 1.19%. On the flip side, Tata Motors down by 3.53%, Hero MotoCorp down by 1.71%, Power Grid down by 1.42%, Bajaj Auto down by 1.03% and Coal India down by 0.94% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC rose 56.14 points or 0.71 to 7,913.50 and Germany’s DAX gained 71.23 points or 0.29 to 24,288.60, while UK’s FTSE 100 decreased 23.55 points or 0.26 to 9,112.77.

Asian markets ended mixed on Wednesday with caution ahead of big US tech earnings, the US Federal Reserve and Bank of Japan’s interest rate decisions, and the August 1 tariff deadline, while upcoming US inflation and jobs data also remained on investors' radar. Japanese shares declined after a powerful 8.7 magnitude earthquake struck off Russia's Kamchatka Peninsula, triggering a tsunami that sent waves crashing into coastal areas and prompting alerts across the Pacific. Hong Kong shares fell after the US and Chinese officials concluded two days of talks in Stockholm without any meaningful breakthroughs. Chinese shares gained after the International Monetary Fund (IMF) revised China's 2025 economic growth up to 4.8% in an update to its World Economic Outlook from the 4.0% forecast in April. China's GDP growth in 2026 is also revised upward by 0.2% points to 4.2%, it said. However, the IMF warned that the global economy faced major risks including a potential rebound in tariff rates, geopolitical tensions and larger fiscal deficits.