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EQUITY
Key gauges end higher on strong GDP data
Sep-01-2025

Indian equity benchmarks, after three straight days of losses, ended higher on Monday on value buying in Auto, Consumer Durables and Consumer discretionary shares along with strong macro data. India's economy grew by a stronger-than-expected 7.8 per cent in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles.

Some of the important factors in trade:

Indian manufacturing sector hits 17-year high: Indian manufacturing sector witnessed the fastest improvement in operating conditions in over 17 years in August, driven by an increased production efficiency and healthy demand conditions. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from 59.1 in July to 59.3 in August. 

Govt on track to meet fiscal deficit target of 4.4% for FY26: Dispelling fears that the government may miss its ambitious fiscal deficit target of 4.4% for FY26, the Department of Economic Affairs (DEA) Secretary Anuradha Thakur has said the government is on track to meet the goal set in the Budget despite temporary mismatches which may have been exhibited in the latest monthly numbers.  

India negotiating bilateral trade agreement with US: Commerce and Industry Minister Piyush Goyal has said that India is negotiating a bilateral trade agreement with the US, indicating that the steep 50 per cent tariff imposed by America on Indian goods will not have much impact on the country’s economy. 

Rupee hits all-time low against US Dollar: Indian rupee depreciated to close at an all-time low of against the US dollar amid Indo-US trade deal uncertainties and higher dollar demand from importers. 

Global front: European markets were trading higher as a U.S. appeals court ruling that many of Donald Trump's tariffs were illegal. Asian markets ended mixed on Monday as China's factory activity data painted a mixed picture of the world's second-largest economy and investor enthusiasm for artificial intelligence waned. Upcoming Federal Reserve meeting and political risks in Indonesia and Thailand were also in focus.

Finally, the BSE Sensex rose 554.84 points or 0.70% to 80,364.49 and the CNX Nifty was up by 198.20 points or 0.81% to 24,625.05.    

The BSE Sensex touched high and low of 80,406.84 and 79,818.38 respectively. There were 23 stocks advancing against 7 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 1.64%, while Small cap index was up by 1.49%.

The top gaining sectoral indices on the BSE were Auto up by 2.68%, Consumer Durables up by 2.07%, Consumer discretionary up by 2.00%, Capital Goods up by 1.93% and Power up by 1.80%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Mahindra & Mahindra up by 3.65%, Tata Motors up by 3.17%, Trent up by 2.71%, Eternal up by 2.23% and Asian Paints up by 2.13%. On the flip side, Sun Pharma down by 1.87%, ITC down by 0.99%, Hindustan Unilever down by 0.44%, Titan Company down by 0.28% and Reliance Industries down by 0.24% were the top losers.

Meanwhile, Reserve Bank of India (RBI) data has indicated that growth in bank credit to industries slowed to 7.6% in June 2025 as compared to 11.3% a year ago, meanwhile, the personal loans segment continued to grow faster than overall advances. Further, share of Industrial credit in total credit declined marginally to 23.3% from 23.8% a year ago, while share of Personal loans grew to 32% of total credit by June 2025. Within Personal loans, the housing loans accounted for more than half. The data also showed that bank credit growth decelerated to 9.9% in June 2025 from 15% in June 2024. The share of loans bearing interest rates below 9% increased to 54.1% in June 2025, from 43.2% in the previous year, with the easing of policy rates. 

The RBI said that in line with monetary policy actions, the weighted average lending rate (WALR) on outstanding credit declined by 39 basis points (bps) during April-June 2025, with reductions observed across all major sectors. During June 2025, the public sector banks recorded credit growth of 11% which is higher than 8.3% growth of private sector banks and 8% growth of foreign banks. The public sector banks have sustained their leading position in total credit with share of 53.7%. Consequently, the share of term deposits in total deposits soared to 62.2% from 61% in June 2024. RBI added that reflection of recent monetary easing became evident in the interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of '7% and above' declined to 65% in June 2025, compared to that of 66.9% a year ago.

Also, the share of term deposits of size 'Rs one crore and above' inched up to 45.7% in June 2025 as compared to 44.8% a year ago. In June 2025, share of 'Household' deposits witnessed a modest decline in the recent period to 59.9% as compared to that of 60.8% in June 2024. The corresponding share of 'Financial Corporations' moved up to 7% in June 2025 as compared to that of 6% a year ago. Besides, deposits growth of public sector banks and private sector banks stood at 10.2% and 12.4%, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3% and 36%, respectively.

The CNX Nifty touched high and low of 24,635.60 and 24,432.70 respectively. There were 42 stocks advancing against 8 stocks declining on the index.   

The top gainers on Nifty were Bajaj Auto up by 4.01%, Mahindra & Mahindra up by 3.52%, Hero MotoCorp up by 3.18%, Eicher Motors up by 3.10% and Tata Motors up by 3.09%. On the flip side, Sun Pharma down by 1.91%, ITC down by 1.03%, Hindustan Unilever down by 0.56%, Titan Company down by 0.30% and Cipla down by 0.22% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 4.71 points or 0.05% to 9,192.05, France’s CAC rose 4.9 points or 0.06% to 7,708.80 and Germany’s DAX gained 89.19 points or 0.37% to 23,991.40.

Asian markets ended mixed on Monday as investors looked ahead to a raft of US labour market data this week that could affect expectations for the Federal Reserve's monetary easing path. Meanwhile, US President Donald Trump defended $183.1 billion in tariff revenues as economic driver after a US appeals court declared most of his tariffs illegal, giving the administration until October 14 to appeal to the US Supreme Court. Chinese shares gained after a government survey showed China's factory activity improved marginally in August, with the corresponding PMI rising to 49.4 from 49.3 in July. Another private sector survey showed that manufacturing PMI inched up to 50.5 last month from 49.4 in July. Hong Kong shares surged, with Alibaba Group Holding shares soared 13.53% after the company reported a surge in revenue from China's AI boom. Japanese shares fell sharply to hit a three-week low, driven by a sell-off in technology shares that mirrored Wall Street's performance on Friday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,875.53

17.60

0.46

Hang Seng

25,617.42

539.8

2.15

Jakarta Composite

7,736.07

-94.42

-1.22

KLSE Composite

--

--

--

Nikkei 225

42,188.79

-529.68

-1.24

Straits Times

4,276.07

6.37

0.15

KOSPI Composite

3,142.93

-43.08

-1.37

Taiwan Weighted

24,071.73

-161.37

-0.67

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