Markets trade tad higher after cautious start on bargain hunting

Indian equity benchmarks made a cautious start on Wednesday amid mixed global cues. But, soon markets gained some traction and were trading slightly higher in early deals on account of bargain hunting after two sessions of continued losses. Some support came as the Asian Development Bank (ADB) in its latest Asian Development Outlook has upgraded India’s growth projection by 0.7 percentage points to 7.2% for fiscal year ending March 2026 from 6.5% projected in September release. Traders took note of the commerce ministry’s statement that India and the EU have agreed to intensify efforts for early conclusion of negotiations on the proposed free trade agreement (FTA).

On the global front, Asian markets were trading mixed as traders were reluctant to make significant moves ahead of the US Fed's monetary policy announcement later in the day. The Fed is widely expected to lower interest rates by another quarter point. Besides, the Bank of Japan said producer prices in Japan were up 0.3 percent on month in November. Back home, cement stocks were in focus as Crisil Intelligence in a report said Indian cement industry's volume is likely to grow by 8-9% in the second half of FY26, led by pent-up demand and better liquidity. 

The BSE Sensex is currently trading at 84882.89, up by 216.61 points or 0.26% after trading in a range of 84607.49 and 84945.48. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.36%, while Small cap index was up by 0.62%.

The top gaining sectoral indices on the BSE were Utilities up by 1.01%, Metal up by 0.92%, Realty up by 0.89%, Power up by 0.87%, Basic Materials up by 0.69%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were Adani Ports & SEZ up by 1.48%, Bajaj Finserv up by 1.11%, Kotak Mahindra Bank up by 1.01%, Tata Steel up by 0.87% and Mahindra & Mahindra up by 0.81%. On the flip side, Titan Company down by 0.24%, Sun Pharma down by 0.24%, Infosys down by 0.16%, Bharti Airtel down by 0.15% and Eternal down by 0.10% were the top losers.

Meanwhile, the Asian Development Bank (ADB) in its latest Asian Development Outlook has upgraded India’s growth projection by 0.7 percentage points to 7.2% for fiscal year ending March 2026 from 6.5% projected in September release. It noted that growth will be driven primarily by robust domestic consumption supported by recent tax cuts. It noted that GDP grew faster-than-expected 8.2% in second quarter of current fiscal (July to September 2025), leading to an average growth of 8% in the first half of the fiscal year. The strong growth is attributable to robust expansion of the manufacturing and services sectors on the supply side and consumption and investment on the demand side. Exports remained resilient due to frontloading ahead of elevated US tariffs and diversification to non-US markets.

It further said growth is expected to moderate in the second half, as the central government’s capital spending eases amid fiscal consolidation efforts, and export growth softens, driven by elevated US tariffs impacting select Indian exports. However, stronger-than-expected consumption demand, helped by a robust rural economy, the impact of GST rate cuts, and steady credit growth will support growth.  On the supply side, domestic industrial demand will be tempered by muted goods exports and strong imports. The services sector, which has grown by 9.3% in first half of fiscal year, will continue to grow strongly, helped by robust domestic and external demand. 

Growth in next fiscal year ending March 2027 is maintained at 6.5%. A strong growth outcome in the first half of current year will result in an unfavorable base effect for the corresponding period in next year. However, this is likely to be offset by an array of recent measures incentivizing growth, such as enhanced labor market flexibility through a revamp of the labor laws, simplification of GST, relaxation of import restrictions for selected products, and credit relief and support to exporters affected by US tariffs. Risks remain balanced, with downside risks coming from potential escalation of trade tensions and weather?related shocks, while upside potential could emerge if trade negotiations with the US yield a lower tariff rate for India. Meanwhile, developing Asia’s growth outlook is revised to 5.1% for 2025 and 4.6% for 2026, up by 0.3 and 0.1 percentage points, respectively, from September.

The CNX Nifty is currently trading at 25905.75, up by 66.10 points or 0.26% after trading in a range of 25832.65 and 25916.90. There were 35 stocks advancing against 14 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Hindalco up by 1.55%, Adani Ports & SEZ up by 1.35%, Kotak Mahindra Bank up by 1.23%, Bajaj Finserv up by 1.15% and Eicher Motors up by 1.10%. On the flip side, Interglobe Aviation down by 1.10%, SBI Life Insurance down by 0.41%, Titan Company down by 0.39%, Sun Pharma down by 0.25% and HDFC Life Insurance down by 0.22% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 154.1 points or 0.3% to 50,501.00, Hang Seng declined 117.23 points or 0.46% to 25,317.00, Shanghai Composite weakened 28.01 points or 0.72% to 3,881.51 and Straits Times fell 14.65 points or 0.32% to 4,498.59. On the other hand, Taiwan Weighted surged 174.07 points or 0.62% to 28,356.67, Jakarta Composite gained 38.9 points or 0.45% to 8,696.08 and KOSPI was up by 6.15 points or 0.15% to 4,149.70.