Indian equity benchmarks made flat-to-positive start of July month and soon extended their gains tracking firm global cues, while monitoring the tension between the US and Iran. Sensex and Nifty were trading higher with notable gains in early deals on Wednesday on account of healthy buying in FMCG, Auto and Consumer Discretionary stocks. Traders took note of the Finance Ministry report stating that the economy remains resilient, though moderation in some high-frequency indicators suggests a gradual easing of momentum, while flagging risks from uneven monsoon rainfall, emerging El Nino conditions and geopolitical uncertainties. However, there was some cautiousness amid foreign fund outflows. Foreign portfolio investors (FPIs) sold shares worth Rs 2,556.75 crore on June 30.
On the global front, Asian markets were trading mostly higher tracking overnight gains on Wall Street on the back of stronger than expected US job openings data which showed resilience in the US economy. As per the US Bureau of Labor Statistics, the number of job openings in United States remained unchanged at 7.6 million in May while job openings for the month of April were revised down by 33,000.
The BSE Sensex is currently trading at 76778.04, up by 299.37 points or 0.39% after trading in a range of 76538.37 and 76790.16. There were 19 stocks advancing against 11 stocks declining on the index.
The top gaining sectoral indices on the BSE were FMCG up by 1.54%, Auto up by 1.51%, Consumer Discretionary up by 1.00%, Consumer Durables up by 0.93% and Realty up by 0.48%, while Metal down by 0.65%, Oil & Gas down by 0.28%, Telecom down by 0.14%, IT down by 0.07% and Basic Materials down by 0.05% were the top losing indices on BSE.
The top gainers on the Sensex were Mahindra & Mahindra up by 2.80%, Hindustan Unilever up by 2.32%, Maruti Suzuki India up by 2.16%, Titan Company up by 1.61% and Eternal up by 1.53%. On the flip side, Bajaj Finserv down by 2.06%, Tech Mahindra down by 1.83%, HCL Technologies down by 0.67%, Larsen & Toubro down by 0.38% and Interglobe Aviation down by 0.33% were the top losers.
Meanwhile, FICCI in its latest edition of the Quarterly Survey on Manufacturing (QSM) has said that manufacturing growth in India is likely to moderate in the quarter ended June 2026 (Q1FY27) compared with the preceding quarter, primarily due to subdued business sentiment amid the ongoing West Asia crisis. The survey indicates a cautious outlook for production activity in Q1FY27 compared to the previous quarter. However, manufacturers’ responses continue to reflect overall positive sentiment, supported by stable domestic fundamentals, which are expected to underpin the sector’s growth trajectory.
As per the survey, in comparison to Q4FY26, when 93 per cent of respondents reported higher or same production levels, approximately 77 per cent respondents reported either higher or same production levels in Q1FY27. This moderation was also evident in demand, as 77 per cent of respondents reported higher or the same orders in the first quarter of FY27 as compared to 89 per cent in the previous quarter. However, there was no major impact seen on the capacity utilisation as compared to the previous quarter. The existing average capacity utilisation in manufacturing stood at close to 72 per cent, which is similar to the capacity utilisation in the previous survey.
FICCI said ‘The future investment outlook is steady for the next six months. Challenges faced by respondents in expanding capacities include the current geopolitical situation (tariffs, trade restrictions, demand uncertainty), operational issues (labour availability, raw material shortages, increasing logistic costs, regulatory challenges)’. It noted that about 61 per cent of respondents reported a higher or the same level of exports in Q4 of FY 2025-26, whereas for Q1 of FY 2026-27 around 74 per cent of the respondents reported their exports to be higher or the same as compared to the same periods in the preceding fiscal.
It further said export diversification efforts by the government and industry seem to be yielding results. Nearly 79 per cent of respondents reported an increase in the cost of production as a percentage of sales, as against 70 per cent in the previous quarter, indicating that cost pressures were higher in this quarter. The increase in the cost of production compared to last year is mainly due to higher raw material costs, energy costs, currency depreciation, and increased logistics and utility costs.
FICCI's latest QSM, which is the 70th edition of the survey, assessed the performance and sentiments for the April-June period of FY 2026-27 of manufacturers for eight major sectors such as Automotive & Auto Components, Capital Goods, Chemicals, Fertilisers & Pharmaceuticals, Electronics & Electricals, Machine Tools, Metal & Metal Products, Textiles and Apparels & Technical Textiles. Responses have been drawn from manufacturing units from both large and SME segments with a combined annual turnover of over Rs 4 lakh crore.
The CNX Nifty is currently trading at 23963.25, up by 97.50 points or 0.41% after trading in a range of 23895.10 and 23964.35. There were 30 stocks advancing against 20 stocks declining on the index.
The top gainers on Nifty were Nestle India up by 2.78%, Maruti Suzuki India up by 2.66%, Hindustan Unilever up by 2.42%, Mahindra & Mahindra up by 2.39% and Ultratech Cement up by 1.80%. On the flip side, Tech Mahindra down by 1.87%, Bajaj Finserv down by 1.81%, Hindalco Industries down by 0.96%, JSW Steel down by 0.93% and HDFC Life Insurance down by 0.88% were the top losers.
Asian markets were trading mostly in green; Taiwan Weighted jumped 1005.01 points or 2.18% to 47,130.92, Nikkei 225 surged 382.68 points or 0.55% to 70,445.00, Jakarta Composite gained 69.83 points or 1.24% to 5,713.02, Shanghai Composite strengthened 44.25 points or 1.08% to 4,138.65 and Straits Times was up by 5.55 points or 0.11% to 5,176.20, while KOSPI dropped 128.24 points or 1.51% to 8,348.24.
