Local equities maintain upward momentum in morning session

Indian equity markets maintained their upward momentum in morning session after India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from current 25 per cent. Sentiments remained up-beat with Finance Minister Nirmala Sitharaman’s statement that the Union Budget for FY27 has focussed on investment as a priority tool for boosting consumption, and the trajectory of fiscal deficit shows that the government’s priority is growth. Some support also came as S&P Global Ratings said it is confident that the government will achieve its 4.3 per cent fiscal deficit target for FY27 despite a projected dip in goods and services tax (GST) receipts following the rate streamlining in September 2025. On the global front, Asian markets were trading higher as slightly easing concerns about U.S.-Iran friction after U.S. President Donald Trump said he was hopeful of agreeing a deal with Iran helped well in lifting sentiment.

The BSE Sensex is currently trading at 84064.60, up by 2398.14 points or 2.94% after trading in a range of 83501.22 and 85871.73. All the 30 stocks were advancing on the index.

The top gaining sectoral indices on the BSE were Realty up by 5.14%, Power up by 3.71%, Capital Goods up by 3.58%, Industrials up by 3.46% and Consumer Discretionary up by 3.23%, while there was no losing sectoral index on the BSE. 

The top gainers on the Sensex were Adani Ports & SEZ up by 7.49%, Interglobe Aviation up by 5.53%, Bajaj Finance up by 5.14%, Bajaj Finserv up by 4.41% and Reliance Industries up by 4.32%. 

Meanwhile, EEPC India has welcomed the announcement of a trade deal with the United States (US) under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from the existing 25 per cent. It said the move could provide a major boost to engineering shipments. 

EEPC India’s Vice Chairman, Aakash Shah said ‘while the detailed contours of the agreement are yet to be made public, the Prime Minister Narendra Modi's message clearly mentioned lower tariffs for Made in India products, which is very good news.’ He said that for the fourth year in a row, the US remains India's largest trading partner in 2024-25. He noted that the engineering sector, which constitutes nearly one-fourth of India's total merchandise exports, is expected to be among the biggest beneficiaries of the trade deal. He said the anticipated tariff relief could result in stronger-than-expected growth in engineering exports in the current financial year. He added that the tariff boost should help the engineering industry end the year on a strong note, and also lay the foundation for a much better 2026-27 in terms of global exports.

However, he said it would be premature to quantify the exact impact on engineering exports until the agreement's sector-wise details are formally announced. He said exporters are awaiting clarity on product categories and market access provisions. He said ‘once the finer details are available, we will have a clearer picture of how much Indian engineering exports stand to gain’.  

The CNX Nifty is currently trading at 25810.30, up by 721.90 points or 2.88% after trading in a range of 25641.30 and 26341.20. There were 47 stocks advancing against 2 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Adani Enterprises up by 10.66%, Adani Ports & SEZ up by 7.43%, JIO Financial Services up by 7.37%, Interglobe Aviation up by 5.62% and Bajaj Finance up by 5.58%. On the flip side, Nestle down by 0.49% and ONGC down by 0.39% were the only losers.

All Asian markets were trading higher; Nikkei 225 surged 2142.82 points or 3.91% to 54,798.00, Taiwan Weighted added 489.98 points or 1.53% to 32,114.01, Jakarta Composite gained 124.49 points or 1.57% to 8,047.22, Shanghai Composite strengthened 21.55 points or 0.53% to 4,037.30, KOSPI increased 288.47 points or 5.51% to 5,238.14, Hang Seng advanced 84.43 points or 0.31% to 26,860.00 and Straits Times rose 43.59 points or 0.89% to 4,935.86.