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Domestic indices remain in green in late morning deals
Aug-20-2025

Domestic equity indices remained in green and were trading marginally higher in late morning deals owing to buying in Infosys, Eternal, Hindustan Unilever, Tata Steel and NTPC companies’ stocks. Meanwhile, broader indices were also trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.35-0.40%. Some support came in as S&P Global Ratings Director YeeFarn Phua has said that the proposed 2-tier Goods and Services Tax (GST) structure could lower effective taxation rate and boost fiscal revenues over the longer term. On the BSE sectoral front, traders were seen piling up positions in IT, TECK, Telecom, FMCG and Metal, while selling was witnessed in Bankex, Healthcare, Auto and Oil & Gas.

On the global front, Asian markets were trading mixed as investors parsed Japan’s trade data. Japan’s exports dropped 2.6% year over year in July, notching their steepest drop in over four years. Back home, in the stock specific development, PG Electroplast surged after the company signed a definitive agreement with PAX India, a subsidiary of PAX Global Technology, to manufacture Point-of-Sale (POS) devices in India.  

The BSE Sensex is currently trading at 81784.13, up by 139.74 points or 0.17% after trading in a range of 81494.50 and 81817.99. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.39%.

The top gaining sectoral indices on the BSE were IT up by 1.59%, TECK up by 1.56%, Telecom up by 1.25%, FMCG up by 1.06% and Metal up by 0.75%, while Bankex down by 0.38%, Healthcare down by 0.17%, Auto down by 0.11% and Oil & Gas down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.76%, Eternal up by 2.38%, Hindustan Unilever up by 1.80%, Tata Steel up by 1.67% and NTPC up by 1.57%. On the flip side, Bajaj Finance down by 1.48%, Bharat Electronics down by 1.36%, Tata Motors down by 1.30%, Bajaj Finserv down by 0.81% and Trent down by 0.76% were the top losers.

Meanwhile, in order to achieve the ambitious growth target of 8%, parliamentary panel has pitched for raising the investment rate from 31% of the Gross Domestic Product (GDP) to 35%. Besides, the Standing Committee on Finance has urged the government to maintain sustainable, growth-oriented energy policies that prioritise affordability and efficiency while balancing climate commitments with economic and social objectives. The committee also suggested that the Ministry/Central Electricity Authority (CEA) expedite the development of pumped storage projects (PSPs), recognising their critical role in strengthening energy security and reducing import dependency. Meanwhile, it noted that financing these investments may result in higher levels of current account deficit (CAD), which is challenging under current global circumstances.

The committee has emphasized the need for domestic-led growth, for which deregulation is crucial. It suggested a model of cooperative federalism -- facilitating dialogue with states on best practices in land, labour, capital, and regulatory reforms -- can streamline business processes and foster an investor-friendly environment. It said tailored fiscal reforms may be promoted in highly indebted states to improve their fiscal health while maintaining their capacity to invest in critical infrastructure and social development. Moreover, it has emphasized the need to unlock the untapped potential of India's agriculture sector for inclusive economic growth. It suggested a dual approach which focus on addressing immediate challenges while implementing long-term structural reforms. Further, for short-term stability, the committee has observed that the government's strategy such as maintaining buffer stocks; regulating market supplies; and subsidising key food items helps to stabilise food prices and ensure affordable access to essential commodities. It also noted that promoting diversified crop production, strengthening supply chain infrastructure, and encouraging private sector participation in agri-tech innovation are vital steps.

The committee highlighted that the current global trade environment, marked by protectionism and geopolitical volatility, presents a significant opportunity for India as this situation can be leveraged to pursue the guiding principle of 'Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas' and build an 'Atmanirbhar Bharat'. This path involves exploring new markets while simultaneously strengthening domestic manufacturing. Besides, the committee highlighted the need for sound government finances, with an emphasis on improving the quality of expenditure, particularly capital expenditure, and recognise the pivotal role of AI and data for effective governance. It also noted that despite positive corporate earnings, investment in people -- through higher wages, reskilling, and mental health support -- is essential for increased productivity. It concluded that India's economic roadmap must aim not only for a short-term $5 trillion economy but also for sustained, inclusive, and resilient long-term growth.

The CNX Nifty is currently trading at 25022.60, up by 41.95 points or 0.17% after trading in a range of 24929.70 and 25030.90. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.79%, Eternal up by 2.41%, Hindustan Unilever up by 1.83%, TCS up by 1.65% and Tata Steel up by 1.58%. On the flip side, Shriram Finance down by 1.86%, Bajaj Finance down by 1.42%, Bharat Electronics down by 1.38%, Tata Motors down by 1.34% and Bajaj Finserv down by 0.73% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 630.29 points or 1.47% to 42,916.00, Taiwan Weighted lost 728.06 points or 3.08% to 23,625.44, KOSPI dropped 21.43 points or 0.68% to 3,130.13 and Hang Seng declined 62.9 points or 0.25% to 25,060.00. However, Jakarta Composite gained 38.89 points or 0.49% to 7,901.84, Shanghai Composite strengthened 18.35 points or 0.49% to 3,745.64 and Straits Times rose 10.52 points or 0.25% to 4,226.71.

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