Markets continue to trade in green in late afternoon deals

Indian equity markets continued to trade above the neutral lines in late afternoon session amid easing geopolitical tensions in West Asia after Iran indicated that it is in the final stage of drafting an agreement with Oman over the Strait of Hormuz. 

The Sensex gained about three tenths of a percent in late afternoon deals but traded with volatility ahead of its weekly expiry of F&O contracts. Though, upside remained capped amid weakness in autos and technology stocks.

Nifty was trading languish with a positive bias as there was some cautiousness after NSE data showed that foreign institutional investors were the net sellers of securities worth Rs 943.42 crore on Wednesday’s session. Though, downside remained capped amid buying in index heavyweight stocks.

On the global front, Asian equity markets were trading mostly in red as chip stocks faced selling pressure following a sharp pullback in U.S. semiconductor and technology stocks overnight. European equity markets were trading higher amid optimism over easing tensions in Middle East.

The BSE Sensex is currently trading at 78817.45, up by 236.45 points or 0.30% after trading in a range of 78633.73 and 78926.11. There were 14 stocks advancing against 16 stocks declining on the index.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.16%, Energy up by 1.12%, PSU up by 1.08%, Industrials up by 0.86% and Oil & Gas up by 0.63%, while Realty down by 1.45%, Utilities down by 1.00%, Power down by 0.86%, Telecom down by 0.82% and Metal down by 0.74% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.20%, State Bank of India up by 2.77%, Bharat Electronics up by 2.60%, Trent up by 2.16% and Eternal up by 2.16%. On the flip side, Power Grid Corporation down by 3.72%, TCS down by 1.39%, Mahindra & Mahindra down by 1.23%, NTPC down by 1.06% and Interglobe Aviation down by 1.05% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest ‘Industrial Outlook Survey of the Manufacturing Sector’ report has stated that manufacturing firms turned less optimistic about demand conditions during the first quarter of FY27 (Q1:2026 27), with sentiments on production, order books, capacity utilisation and exports weakening amid the ongoing conflict in West Asia. During Q1:2026-27, firms reported intensified cost pressures, particularly on raw materials, alongside some increase in selling prices, while profit margins came under significant strain, reflecting limited pass through of costs.

The survey report noted that the Business Assessment Index (BAI) dropped sharply to 100.4 in Q1:2026 27, from 108.8 in Q4:2025 26, marking the lowest level in the post Covid-19 period, even as it stayed within expansionary territory. Further, manufacturers outlook for Q2:2026-27 remains positive, albeit with some moderation, reflecting a cautious outlook on production, order books, capacity utilisation and exports. 

In Q2:2026-27, cost pressures are anticipated to remain elevated, with only partial pass through, keeping profit margins under strain. As per the survey report, business expectations index moderated in Q2:2026-27, reflecting guarded sentiment among manufacturers. Going ahead, demand conditions are expected to improve during H2:2026-27 from Q2, while responding firms expect the input cost pressures to continue.

The CNX Nifty is currently trading at 24643.60, up by 18.95 points or 0.08% after trading in a range of 24604.15 and 24677.05. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.34%, State Bank of India up by 2.84%, Bharat Electronics up by 2.54%, Eternal up by 2.08% and Trent up by 1.51%. On the flip side, Power Grid Corporation down by 3.83%, Bajaj Auto down by 1.86%, Hindalco Industries down by 1.85%, Tata Steel down by 1.56% and Tata Motors Passenger Vehicles down by 1.54% were the top losers.

Asian equity markets were trading mostly in red; Nikkei 225 slipped 656.44 points or 1% to 65,644.00, Taiwan Weighted lost 214.9 points or 0.48% to 44,396.70, Hang Seng declined 388.82 points or 1.52% to 25,527.00, KOSPI dropped 301.88 points or 4.79% to 6,296.38 and Jakarta Composite plunged 10.54 points or 0.17% to 6,340.60, while Straits Times rose 54.96 points or 0.98% to 5,636.33 and Shanghai Composite strengthened 21.92 points or 0.56% to 3,900.35.

European equity markets were trading higher; UK’s FTSE 100 increased 47.42 points or 0.44% to 10,935.72, France’s CAC rose 68.4 points or 0.79% to 8,737.70 and Germany’s DAX gained 74.4 points or 0.28% to 26,200.70.