Markets trade choppy in late afternoon session

Indian equity markets bounced back and forth over the unchanged line in late trade. Traders shied away from risky bet ahead of RBI’s Monetary policy meet’s outcome scheduled for October 1. Further, market participants took cautious approach after Asian Development Bank (ADB) said that despite a strong 7.8 per cent growth in the first quarter, the Indian economy is expected to grow at 6.5 per cent in the current financial year (FY26) as the impact of US tariffs on Indian exports will reduce prospects, particularly in the second half. However, losses remained capped as investors took note of Commerce and Industry Minister Piyush Goyal indicating that India is negotiating free trade agreements (FTAs) with a number of countries including the US, New Zealand, Oman, Peru, Chile, and the European Union.

On the sectoral front, Asian equity markets were trading mixed as investors fretted over a possible U.S. government shutdown. European equity markets were trading lower after reports showed that U.K. economy grew at a slower pace in the second quarter as increases in services and construction were partially offset by the contraction in production.

The BSE Sensex is currently trading at 80303.71, down by 61.23 points or 0.08% after trading in a range of 80201.15 and 80677.82. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.35%, while Small cap index was down by 0.43%.

The top gaining sectoral indices on the BSE were Metal up by 0.88%, Basic Materials up by 0.35%, PSU up by 0.34%, Bankex up by 0.23% and Auto up by 0.17%, while Realty down by 1.12%, Telecom down by 1.05%, Consumer Durables down by 0.91%, FMCG down by 0.59%, Utilities down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.24%, Adani Ports & SEZ up by 1.16%, Bajaj Finance up by 0.84%, Tata Motors up by 0.76% and Bharat Electronics up by 0.75%. On the flip side, ITC down by 1.22%, Trent down by 1.14%, Titan Company down by 0.94%, Bharti Airtel down by 0.86% and Bajaj Finserv down by 0.66% were the top losers.

Meanwhile, representing a landmark in India’s global trade strategy, Union Minister of Commerce & Industry, Piyush Goyal has said that the Free Trade Agreement (FTA) with the EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland), which was finalised in March 2024, will come into effect from October 1, 2025.

Besides, highlighting the recent GST reforms, Goyal said that Prime Minister Narendra Modi has gifted the nation a transformative reform during Navaratri. He said ‘September 22 will be written in golden letters in history. I believe this is the biggest reform since Independence, the impact of which will be felt for decades.’

The Minister also noted that under the leadership of the Prime Minister, India has transformed from a fragile economy in 2014 to the world’s 4th largest economy today, and will become the 3rd largest economy with a $5 trillion size in the next two years. He underlined that inflation is at 2 percent - the lowest in a decade - while GDP growth stood at 7.8% in the last quarter. He also emphasised that India’s banking sector is robust and interest rates have come down.

The CNX Nifty is currently trading at 24619.15, down by 15.75 points or 0.06% after trading in a range of 24587.70 and 24731.80. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 1.95%, Ultratech Cement up by 1.40%, Hindalco up by 1.25%, Adani Ports & SEZ up by 1.25% and Max Healthcare Inst up by 0.87%. On the flip side, Interglobe Aviation down by 1.95%, ITC down by 1.47%, Trent down by 1.23%, Dr. Reddy's Laboratories down by 1.09% and Bajaj Finserv down by 0.92% were the top losers.

Asian equity markets were trading mixed; Shanghai Composite strengthened 20.25 points or 0.52% to 3,882.78, Hang Seng advanced 248.12 points or 0.92% to 26,871.00, Straits Times rose 18.8 points or 0.44% to 4,288.78 and Taiwan Weighted added 240.22 points or 0.93% to 25,820.54, while Nikkei 225 slipped 60.75 points or 0.14% to 44,983.00, Jakarta Composite plunged 67.11 points or 0.83% to 8,056.14 and KOSPI dropped 6.61 points or 0.19% to 3,424.60.

European equity markets were trading lower; UK’s FTSE 100 decreased 21.44 points or 0.23% to 9,278.40, France’s CAC fell 35.77 points or 0.45% to 7,845.10 and Germany’s DAX lost 9.66 points or 0.04% to 23,735.40.