Indices continue to witness solid gains in late morning deals

Domestic equity indices continued to witness solid gains and were trading higher by over 2.80 percent in late morning deals as market participants indulged in enlarging their positions. Sentiments remained upbeat after U.S. President Donald Trump announced a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers. Trump announced the deal following a call with Indian Prime Minister Narendra Modi, noting that India would now buy oil from the U.S. and potentially Venezuela. The sentiments were further supported by Indian rupee appreciating 106 paise to 90.43 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were trading in green following positive cues from the US markets overnight. Back home, all the sectoral indices on the BSE were trading higher led by Realty, Power, Capital Goods, Utilities and Industrials. 

The BSE Sensex is currently trading at 84020.74, up by 2354.28 points or 2.88% 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 5.80%, Power up by 3.97%, Capital Goods up by 3.74%, Utilities up by 3.55% and Industrials up by 3.52%, while there was no losing sectoral index on the BSE.

The top gainers on the Sensex were Adani Ports up by 7.33%, Bajaj Finance up by 5.40%, Interglobe Aviation up by 5.00%, Bajaj Finserv up by 4.55% and Sun Pharma up by 4.05%, while there were no losers.

Meanwhile, the global rating agency -- S&P Global Ratings has said it is confident that the Indian government will meet its 4.3 percent fiscal deficit target for FY27, despite an anticipated decline in Goods and Services Tax (GST) receipts following the rate streamlining in September 2025. The rating agency said the Union Budget signals a strong commitment to fiscal discipline, reinforcing a trajectory of steady consolidation that aligns with global expectation.  

By outlining a clear roadmap toward narrowing the fiscal deficit targeting 4.4 per cent of GDP for FY26 and 4.3 per cent for FY27, the central government is signaling a balance between growth and responsible spending. It stated ‘We believe India (BBB/Stable/A-2) will hit its fiscal 2027 deficit target despite the government budgeting for lower GST receipts, following the streamlining of GST rates in September 2025. There is upside to GST revenues coming from stronger consumption and higher collection efficiency, in our view.’

Furthermore, it said meeting the deficit target will be supported by large dividends from the central bank and possible underspending on capital. The rating agency expects that consumer spending and public investments will keep India's real GDP growth at 6.7 per cent in FY27 and 7 per cent in FY28. These growth rates keep India ahead of sovereign peers at similar income levels and should continue to support fiscal revenue increase. 

The CNX Nifty is currently trading at 25798.70, up by 710.30 points or 2.83% after trading in a range of 25641.30 and 26341.20. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 10.66%, JIO Financial up by 7.52%, Adani Ports up by 7.32%, Bajaj Finance up by 5.73% and Shriram Finance up by 5.13%. On the flip side, Nestle down by 0.86% and ONGC down by 0.43% were the only losers.

All Asian markets were trading higher; Nikkei 225 rose 2,087.2 points or 3.96% to 54,731.59, Taiwan Weighted gained 571.33 points or 1.81% to 32,195.36, Jakarta Composite surged 124.47 points or 1.57% to 8,047.20, Shanghai Composite strengthened 33.43 points or 0.83% to 4,048.261, KOSPI increased 288.47 points or 5.51% to 5,238.14, Straits Times rose 43.58 points or 0.89% to 4,935.87 and Hang Seng advanced 38.37 points or 0.14% to 26,811.82.