Key gauges end on positive note on Monday

Indian equity benchmarks erased most of their initial gains but ended on a positive note on Monday helped by buying in blue-chip stocks and state poll results moving towards an outcome in line with market expectations. Investor sentiment also supported by a better-than-expected Q4 earnings and softer crude oil prices. However, profit booking at elevated levels erased a significant portion of the gains.  

Some of the important factors in trade:

Govt reports 8.7% growth in GST collection for April: The government data has showed that total Gross Goods and Services Tax (GST) collection rose to a record of Rs 2,42,702 crore in April 2026 as compared to Rs 2,23,265 crore in April 2025, a growth of 8.7%.

India manufacturing growth picks up in April: India’s manufacturing sector growth improved in the month of April 2026, but still marking the second-slowest improvement in operating conditions in nearly four years. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 54.7 in April from 53.9 in March. 

FTAs to help boost exports, generate jobs: Commerce and Industry Minister Piyush Goyal said the free trade agreements (FTAs) finalised by India in the last three and a half years will help provide duty-free access to domestic goods, boost the country's exports and generate lakhs of jobs for people.

Digital reforms in India boost productivity in MSMEs: The International Monetary Fund (IMF) in a working paper has said that India's digitalisation reforms in public administration have increased productivity in micro, small and medium enterprises (MSMEs) in states that implemented these changes. 

Global front: European markets were trading lower weighed down by continued uncertainty surrounding U.S.-Iran peace efforts, and fresh tariff threats by U.S. President Donald Trump. Asian markets ended higher on Monday with big gains for computer chipmakers and other tech stocks after Friday's rally on Wall Street. 

Finally, the BSE Sensex rose 355.90 points or 0.46% to 77,269.40 and the CNX Nifty was up by 121.75 points or 0.51% to 24,119.30.

The BSE Sensex touched high and low of 77,910.75 and 76,939.54, respectively. There were 22 stocks advancing against 8 stocks declining on the index.  

The top gaining sectoral indices on the BSE were Realty up by 2.51%, Healthcare up by 1.47%, Industrials up by 1.27%, Capital Goods up by 1.11% ad Basic Materials up by 1.05%, while TECK down by 1.53%, IT down by 0.78%, Telecom down by 0.13% and Oil & Gas down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 5.30%, Hindustan Unilever up by 2.60%, Reliance Industries up by 2.24%, Larsen & Toubro up by 2.18% and Eternal up by 2.09%. On the flip side, Bharti Airtel down by 3.14%, Kotak Mahindra Bank down by 2.82%, TCS down by 1.73%, ITC down by 1.25% and Infosys down by 1.11% were the top losers.

Meanwhile, India’s manufacturing sector growth improved in the month of April 2026, but still marking the second-slowest improvement in operating conditions in nearly four years. Besides, spillovers from the Middle East conflict are becoming more evident, particularly through inflation as input costs increased at the fastest pace since August 2022, and output prices rose at the quickest rate in six months. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 54.7 in April from 53.9 in March. 

The report further noted that new orders and output rose since March but trailed readings seen in at least three-and-a-half years. Advertising and demand resilience supported sales and production, but that growth was hampered by competitive conditions, the war in the Middle East and a reluctance among clients to approve pending quotes. Further, new export orders expanded sharply at the start of the first fiscal quarter, with the pace of growth reaching a seven-month high, amid better demand from clients in several countries, including Australia, France, Japan, Kenya, mainland China, Saudi Arabia, the UAE and the UK.

As per the report, despite only a marginal increase in outstanding business volumes, manufacturers recruited additional workers at the start of the first fiscal quarter. Moreover, the rate of job creation was marked and the strongest in ten months. Hiring growth reflected expansion plans. Meanwhile, Indian manufacturers remained optimistic towards growth prospects. The overall level of positive sentiment slipped since March, though was at its second-highest mark since November 2024. Confidence was pinned on hopes that marketing efforts will bear fruit and that pending projects will be approved.

CNX Nifty touched high and low of 24,290.20 and 24,004.75, respectively. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Adani Ports &SEZ up by 5.41%, Eicher Motors up by 3.11%, JIO Financial Services up by 2.98%, Adani Enterprises up by 2.68% and Reliance Industries up by 2.54%. On the flip side, Kotak Mahindra Bank down by 3.18%, Bharti Airtel down by 3.12%, Dr. Reddy's Lab down by 2.61%, ONGC down by 2.22% and TCS down by 1.77% were the top losers.

European markets were trading lower; France’s CAC fell 64.14 points or 0.79% to 8,050.70 and Germany’s DAX lost 17.88 points or 0.07% to 24,274.50.

Asian markets ended higher on Monday on eased Iran war tensions after US President Donald Trump announced that the US would escort neutral vessels safely through the passageway, aiming to help ships stranded by the conflict with Iran transit securely. The development eased fears of prolonged disruptions to global oil shipping routes and reduced inflation concerns. Seoul shares surpassed the 6,900-point level for the first time on strong semiconductor-led growth, while data showed South Korea’s factory activity expanded at its fastest pace in more than four years in April, with the S&P Global manufacturing PMI rising to 53.6, up from 52.6 in March as semiconductor demand boosted output and new orders. Stock markets of Japan and China were closed for holiday for Greenery Day and Labour Day respectively.