Benchmarks trade firm amid fall in global crude prices

Indian markets, a day after the heavy drubbing, made an optimistic start on Tuesday amid a decline in crude oil prices and hints of de-escalation in the US-Iran conflict. Oil prices fell on Tuesday after US President Donald Trump said he was considering seizing control of the Strait of Hormuz, the most important chokepoint in the world for the crude market. Sensex and Nifty were trading higher with decent gains of around half a percent each in early deals on account of healthy buying in Consumer Durables, Industrials and Power stocks. Traders took note of report that the Reserve Bank of India (RBI) has injected Rs 50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities. 

On the global front, all the Asian markets were trading higher, following the broadly positive cues from Wall Street overnight, as traders reacted to positive reports of U.S. President Donald Trump stating that the U.S. war with Iran could be over soon as Iranian forces now have no navy, communications, or air force. Trump also reportedly said he is thinking about taking over the Strait of Hormuz for the smooth passage for crude oil tankers.

The BSE Sensex is currently trading at 77921.20, up by 355.04 points or 0.46% after trading in a range of 77777.51 and 78526.25. There were 21 stocks advancing against 9 stocks declining on the index.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.65%, Industrials up by 1.18%, Power up by 1.17%, Auto up by 1.16% and Healthcare up by 1.07%, while IT down by 0.60%, Energy down by 0.60%, TECK down by 0.57% and Oil & Gas down by 0.49% were the few losing indices on BSE.

The top gainers on the Sensex were Interglobe Aviation up by 3.03%, Asian Paints up by 2.40%, Ultratech Cement up by 2.35%, Mahindra & Mahindra up by 1.91% and Titan Company up by 1.59%. On the flip side, Infosys down by 1.19%, Reliance Industries down by 0.98%, Tech Mahindra down by 0.86%, HCL Technologies down by 0.57% and TCS down by 0.46% were the top losers.

Meanwhile, marking importance of Free Trade Agreements (FTAs) in expanding opportunities for India’s MSMEs, Union Minister of State for Commerce and Industry and Electronics and Information Technology, Jitin Prasada has said that recent FTAs with regions including the European Union, the United Kingdom, Australia, New Zealand and other major markets give Micro, Small and Medium Enterprises (MSMEs) access to major developed markets. This creates significant opportunities for Indian manufacturers to join global supply chains and meet international demand.

He noted that MSMEs, which form the backbone of the Indian economy, must focus on quality-led growth instead of low-cost mass production. Since around 65% of developed markets are linked through India’s FTAs, they require high-quality products. He also highlighted that digitally connected Indian consumers, even in rural areas, are increasingly demanding better-quality goods, and zero-duty access will not allow sub-standard imports.

Highlighting the importance of technology adoption, he said that Artificial Intelligence (AI) is emerging as a critical tool across industries including healthcare, transportation, manufacturing and services. He encouraged MSMEs to adopt AI-driven technologies to improve productivity, efficiency and decision-making, while reducing the burden of routine operational tasks.

The CNX Nifty is currently trading at 24153.45, up by 125.40 points or 0.52% after trading in a range of 24085.60 and 24303.80. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 3.64%, Interglobe Aviation up by 3.29%, Asian Paints up by 2.56%, Ultratech Cement up by 2.33% and Dr. Reddy's Lab up by 2.08%. On the flip side, ONGC down by 1.68%, Infosys down by 1.25%, Hindalco down by 0.92%, Reliance Industries down by 0.92% and Tech Mahindra down by 0.79% were the top losers.

All Asian markets were trading higher; Nikkei 225 surged 1141.28 points or 2.16% to 53,870.00, Taiwan Weighted rose 471.2 points or 1.47% to 32,581.62, Hang Seng strengthened 379.54 points or 1.47% to 25,788.00, KOSPI increased 227.20 points or 4.33% to 5,479.07, Jakarta Composite gained 75.44 points or 1.03% to 7,412.81, Straits Times added 68.96 points or 1.45% to 4,825.57 and Shanghai Composite was up by 16.02 points or 0.39% to 4,112.62.