Post Session: Quick Review

Indian equity markets ended higher on Thursday, as traders were optimistic after Iran said it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, easing concerns over potential disruptions to global trade. Sentiment remained upbeat, supported by stronger-than-expected June quarter earnings.

The BSE Sensex closed with nearly half a percent gains on weekly F&O expiry day, supported by strong buying interest in heavyweight banking stocks. Rally in Reliance Industries further helped the index to extend its gains.

The Nifty 50 remained range-bound throughout the session and managed to eke out modest gains, supported by buying in index heavyweight stocks. Upside remained capped amid foreign fund outflows.

Some of the important factors in trade:

India, Africa powerful force for global progress: Some support came as External Affairs Minister S Jaishankar said that Africa is India's partner and its priority, and whether one speaks of a multipolar world order or of a reformed multilateralism, it will happen only when the continent is given its due place.

India witnesses significant growth in the Chemicals & Petrochemicals sector over the last 12 years: Traders took note of report that the Department of Chemicals & Petrochemicals (DCPC), under the Ministry of Chemicals & Fertilizers, has undertaken policy reforms, infrastructure development, capacity building, skill development, quality enhancement, and investment promotion initiatives for the chemical and petrochemical sector, over the past twelve years.

Rural economy, agriculture sector gain resilience over years: Some solace came as Reserve Bank of India (RBI) Governor Sanjay Malhotra said that the rural economy and the agriculture sector have become more resilient over the years, supported by the growth of allied activities, expanded irrigation, greater farm mechanisation, and improved crop varieties. 

On the global front: European markets were trading in green, as diplomatic efforts to ease tensions between the United States and Iran gather pace. Asian markets closed mostly lower as semiconductor stocks came under selling pressure after a sharp overnight pullback in U.S. chipmakers and broader technology stocks.

The BSE Sensex ended at 78954.76, up by 373.76 points or 0.48% after trading in a range of 78633.73 and 78954.76. There were 11 stocks advancing against 16 stocks declining on the index, while 3 stocks remained unchanged. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.29%, Energy up by 1.14%, PSU up by 1.09%, Bankex up by 0.86%, and Industrials up by 0.83%, while Realty down by 1.42%, Utilities down by 1.02%, Telecom down by 0.82%, Metal down by 0.79%, and IT down by 0.72% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Reliance Industries up by 3.43%, State Bank of India up by 3.02%, Bharat Electronics up by 2.56%, ICICI Bank up by 2.28% and Eternal up by 1.99%. On the flip side, Power Grid Corporation down by 3.99%, TCS down by 2.06%, Interglobe Aviation down by 1.49%, Mahindra & Mahindra down by 1.41% and Maruti Suzuki India down by 1.15% were the top losers. (Provisional)

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 ended at 24636.00, up by 11.35 points or 0.05% after trading in a range of 24604.15 and 24677.05. There were 15 stocks advancing against 34 stocks declining on the index, there was one stock remained unchanged. (Provisional)

The top gainers on Nifty were Reliance Industries up by 3.52%, State Bank of India up by 2.84%, Bharat Electronics up by 2.36%, Eternal up by 1.90% and Titan Company up by 1.74%. On the flip side, Power Grid Corporation. down by 3.90%, Tata Steel down by 1.91%, TCS down by 1.66%, JSW Steel down by 1.66% and Bajaj Auto down by 1.53% were the top losers. (Provisional)

European markets were trading higher; France’s CAC rose 61.1 points or 0.7% to 8,730.40, UK’s FTSE 100 increased 45.64 points or 0.42% to 10,933.94 and Germany’s DAX gained 73.5 points or 0.28% to 26,199.80. 

Asian stocks ended mostly lower on Thursday, as participants booked profits due to growing anxiety over massive capital spending on Artificial Intelligence (AI). Investor sentiments dulled after soft financial outlooks from major tech entities, including SanDisk, Western Digital, and Advanced Micro Devices (AMD), failed to meet exceptionally high market expectations. Lingering uncertainty surrounding the US-Iran conflict and hawkish comments from Federal Reserve also pressured equity investments. South Korea's KOSPI plunged due to extreme retail leverage in single-stock ETFs. An avalanche of forced liquidations and automatic margin calls also added the negative trend.