Key gauges snap 2-day losing streak on Wednesday

Snapping a two-session losing streak, Indian equity benchmarks ended over half percent higher on Wednesday supported by strong buying in Realty and FMCG stocks amid drop in crude oil prices despite uncertainty surrounding ongoing U.S.-Iran negotiations in Doha.  

Some of the important factors in trade:   

Govt’s gross GST collections rise 13.9% to Rs 1,94,812 crore in June: The government data has showed that gross goods and services tax (GST) collections rose 13.9 per cent to Rs 1,94,812 crore in June 2026 as compared to Rs 1,71,105 crore in June 2025 as robust import tax collections offset relatively moderate growth in domestic revenues. 

Bank credit to industry registers 17.5% growth in May: The Reserve Bank of India (RBI) in its latest data has showed that bank credit to the industrial sector grew 17.5 per cent y-o-y by the end of May 2026, a sharp acceleration from 5.3 per cent recorded in the corresponding period last year, as advances to large industries grew at an accelerated pace, along with sustained healthy expansion in the MSE sector.

India’s financial system remains resilient supported by strong bank, non-bank balance sheets: The Reserve Bank of India (RBI) in its Financial Stability Report (FSR) has said that Indian financial system remains resilient, supported by strong bank and non-bank balance sheets, as gross non-performing assets of banks have touched a multi-decadal low of 1.8% at end-March 2026. 

June manufacturing growth slows to 54.2 despite softer inflation: According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased from 55.0 in May to 54.2 in June. With the exception of March, rates of increase in both output and new orders were the weakest seen in four years. 

Global front: European markets were trading mostly in red as talks between the U.S. and Iran faced new hurdles, fueling inflation worries and increasing the likelihood of Federal Reserve interest-rate hikes. Asian markets ended mostly higher despite uncertainty surrounding ongoing U.S.-Iran negotiations in Doha. 

Finally, the BSE Sensex rose 443.97 points or 0.58% to 76,922.64 and the CNX Nifty was up by 140.10 points or 0.59% to 24,005.85. 

The BSE Sensex touched high and low of 77,110.08 and 76,538.37, 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 3.56%, FMCG up by 1.76%, Consumer Discretionary up by 1.20%, Auto up by 1.10% and Consumer Durables up by 0.66%, while IT down by 1.94%, TECK down by 1.03%, Metal down by 0.87%, Healthcare down by 0.38% and Telecom down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 5.71%, Asian Paints up by 3.13%, Hindustan Unilever up by 3.02%, Adani Ports &SEZ up by 2.10% and Maruti Suzuki India up by 2.07%. On the flip side, HCL Technologies down by 3.46%, Tech Mahindra down by 3.06%, TCS down by 2.55%, Tata Steel down by 1.59% and Infosys down by 1.51% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its Financial Stability Report (FSR) has said that Indian financial system remains resilient, supported by strong bank and non-bank balance sheets, as gross non-performing assets of banks have touched a multi-decadal low of 1.8% at end-March 2026. It pointed that the country’s sound macroeconomic fundamentals place it in a stronger position than many of its peers and provide greater resilience to external shocks than in past crisis episodes. However, it flagged that exchange rate volatility may rise if oil prices increase due to the delayed normalisation of supply chain disruptions and additional demand to replenish inventory. Although, it added that the interim peace deal between Iran and the US can provide tailwinds to Indian economic growth. 

Despite banking system’s resilience, the report highlighted funding as key emerging challenge for the banks at a time when savers chase higher-yielding avenues like equities and mutual funds to park their money. It added that banks’ liability profile is shifting from low-cost current and savings account (CASA) to higher-cost term deposits and certificates of deposit, pushing up the marginal cost of funds. However, the banks have resorted to higher-yielding loan avenues like small business lending to protect margins. Besides, it noted that AI-enabled cyberattacks are the most important near-term challenge for banks from a cyber threats perspective amid the threats posed by Anthropic’s Mythos model.

The report has emphasised that the Indian economy and financial system are exposed to geopolitical tensions and associated shocks, despite receding headwinds from the West Asia conflict amid the signing of the interim peace deal. It also flagged that fiscal deficit can come under pressure because of the higher prices of energy and other commodities, their limited pass through to pump prices, excise duty cuts and higher outgo on subsidies. However, RBI noted that the pressure on the exchange rate and bond yields has eased post the measures taken by the RBI and the Government to attract capital flows, helping overall financial conditions to ease. On the inflation front, it said a combination of conflict-driven supply shock and projected weak monsoon due to El Nino can push headline inflation to the higher end of the tolerance band or around 6% in Q3FY27 and also worsen inflation expectations.

CNX Nifty touched high and low of 24,049.90 and 23,895.10, respectively. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Eternal up by 5.82%, Adani Enterprises up by 3.52%, Nestle India up by 3.40%, Asian Paints up by 3.01% and Hindustan Unilever up by 2.99%. On the flip side, HCL Technologies down by 3.40%, Tech Mahindra down by 3.18%, TCS down by 2.45%, Hindalco Industries down by 1.80% and Tata Steel down by 1.63% were the top losers. 

European markets were trading mostly in red; UK’s FTSE 100 decreased 38.06 points or 0.36% to 10,459.06 and France’s CAC fell 52.89 points or 0.63% to 8,351.10, while Germany’s DAX gained 91.29 points or 0.37% to 25,087.10. 

Asian markets ended mostly higher on Wednesday tracking Wall Street’s gains overnight, while investors focus shifted to US labour market data alongside upcoming remarks from Federal Reserve Chair Kevin Warsh later today at the annual European Central Bank Forum in Sintra, Portugal. The June US ADP employment data, due later in the day, and US nonfarm payroll figures on Thursday, might provide fresh insights into the Fed's rate path going forward. Japanese shares gained as the yen slid to a fresh 40-year low against the US dollar, while investors cheered the results of a quarterly survey from the BoJ, which showed business sentiment among major Japanese manufacturers improved for a fifth straight quarter. However, South Korea’s Kospi tumbled as investors booked profits following recent artificial intelligence-fuelled rallies in semiconductor shares. Hong Kong markets were closed for Establishment Day. Meanwhile, ongoing geopolitical uncertainties are fuelling inflation worries and increasing the likelihood of Federal Reserve interest-rate hikes. Iranian Parliament Speaker and chief negotiator, Mohammad Bagher Ghalibaf, said Iran will not enter negotiations with the United States on a final agreement unless five preliminary paragraphs of a recently signed pace memorandum of understanding are fulfilled. These include provisions for ending the war on all fronts, including Lebanon, lifting the US naval blockade, reopening the Strait of Hormuz, issuing US waivers for Iranian crude oil exports, and releasing frozen Iranian assets.