Indian equity markets remained in green and were trading higher by over quarter percent in late morning deals on account of buying in Hindustan Unilever, Maruti Suzuki, Trent, Reliance Industries and ITC companies’ stocks. Falling crude oil prices supported markets sentiments. Oil prices dropped after U.S. President Donald Trump said that the war in Iran should be ending pretty soon, while a ceasefire between Israel and Lebanon raised hopes of easing supply disruptions. Sentiments were further supported by Indian rupee appreciating 48 paise to 92.66 against the dollar on increased selling of the US currency by exporters and banks.
On the global front, Asian markets were trading mostly in red on account of profit booking after a strong rally fueled by increasing optimism about a potential resolution to the US–Iran conflict. Back home, on the BSE sectoral front, traders were seen piling up positions in FMCG, Capital Goods, Energy, Industrials and Power, while selling was witnessed only in TECK and IT.
The BSE Sensex is currently trading at 78276.65, up by 287.97 points or 0.37% after trading in a range of 77726.23 and 78358.14. There were 18 stocks advancing against 12 stocks declining on the index.
The top gaining sectoral indices on the BSE were FMCG up by 2.27%, Capital Goods up by 1.60%, Energy up by 1.08%, Industrials up by 0.96% and Power up by 0.93%, while TECK down by 0.36% and IT down by 0.35% were the only losing indices on BSE.
The top gainers on the Sensex were Hindustan Unilever up by 4.05%, Maruti Suzuki up by 2.19%, Trent up by 1.83%, Reliance Industries up by 1.70% and ITC up by 1.37%. On the flip side, HCL Technologies down by 1.32%, Titan down by 0.89%, Sun Pharma down by 0.76%, Eternal down by 0.69% and ICICI Bank down by 0.59% were the top losers.
Meanwhile, Global Trade Research Initiative (GTRI) has said that the European Union’s (EU) plan to significantly expand its Carbon Border Adjustment Mechanism (CBAM) is likely to raise carbon tax costs on Indian manufactured exports to Europe. It said that Indian exporters selling into Europe may need to accelerate emissions accounting, supply-chain traceability, and decarbonisation investments to remain competitive in one of the country's key export markets.
GTRI said as per the draft proposal, the European Parliament's Committee on the Environment, Climate and Food Safety (ENVI) proposed five major revisions to the CBAM regime. These include extending the mechanism to about 180 additional steel- and aluminium-based manufactured products from January 1, 2028. The draft also proposes stricter carbon accounting rules, including counting emissions from pre-consumer scrap in scrap-based production. Another key element under consideration is extending CBAM coverage to indirect emissions from electricity use across a wider set of sectors.
GTRI Founder Ajay Srivastava said together, these steps would turn CBAM from a tax mainly on steel and aluminium raw materials into a much wider carbon tax covering manufactured industrial goods. He said the proposed expansion could bring a wide range of products under CBAM, including fabricated metal goods, tubes, pipes, fasteners, structural components, machinery parts, aluminium containers, and other semi-finished and finished engineering goods. He said while detailed product lists are yet to be published, the proposal indicates that the levy is moving deeper into the manufacturing value chain. He further said CBAM currently applies to imports of iron and steel, aluminium, cement, fertilisers, hydrogen, electricity, and select related products. He cautioned that from January 2028, Indian exporters of engineering goods, auto components, fabricated metal products, machinery, aluminium manufactures, and other industrial goods may increasingly face carbon-related charges when shipping to Europe.
The CNX Nifty is currently trading at 24273.80, up by 77.05 points or 0.32% after trading in a range of 24096.05 and 24304.55. There were 33 stocks advancing against 17 stocks declining on the index.
The top gainers on Nifty were Hindustan Unilever up by 4.10%, Maruti Suzuki up by 2.17%, Nestle up by 1.81%, Trent up by 1.72% and Reliance Industries up by 1.67%. On the flip side, Wipro down by 2.88%, HDFC Life down by 2.78%, HCL Technologies down by 1.32%, Hindalco down by 0.85% and Sun Pharma down by 0.75% were the top losers.
Asian markets were trading mostly in red; Nikkei 225 slipped 596.34 points or 1% to 58,922.00, Taiwan Weighted lost 282.56 points or 0.76% to 36,849.46, Shanghai Composite weakened 1.95 points or 0.05% to 4,053.60, KOSPI dropped 30.33 points or 0.49% to 6,195.72, Hang Seng declined 262.26 points or 0.99% to 26,132.00 and Straits Times fell 14.3 points or 0.29% to 4,993.53. However, Jakarta Composite gained 15.51 points or 0.2% to 7,636.89.
