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EQUITY
Post Session: Quick Review
Sep-02-2025

Indian equity benchmarks ended in negative terrain on Tuesday, due to selling in heavy weight banking stocks. Markets made positive start, as traders took some support with the commerce ministry stating that India and the UAE have discussed ways to enhance and facilitate trade in pharmaceuticals and healthcare products with an aim to boost economic ties. However, in late afternoon session, markets turned negative and ended with minor losses, as traders remained cautious amid upcoming Goods and Services Tax (GST) Council meeting, which will be held on September 3 and 4, 2025. The GST Council is scheduled to hold a two-day meeting to discuss the revisions of tax slabs.

Some of the important factors in trade:

Foreign fund outflow: Ongoing foreign fund outflows also dampened market sentiments. Foreign institutional investors (FIIs) offloaded shares worth Rs 1,429.71 crore on a net basis on Monday.

India’s CAD narrows to 0.2% of GDP in April-June period of 2025-26: Traders took note of India's current account deficit (CAD) narrowed to 0.2 per cent of GDP, or $2.4 billion, during the April-June period of 2025-26 compared to 0.9 per cent of the GDP, or $8.6 billion, in the year-ago period, helped by services exports

Gross GST revenue rises 6.5% to Rs 1.86 lakh core in August: Traders overlooked the government data showed that gross GST collection increased 6.5 per cent to over Rs 1.86 lakh crore in August on higher domestic revenues.

Global front: European markets were trading mostly in red, after Eurostat data showed Eurozone inflation rose to 2.1 percent last month, climbing above the European Central Bank's 2 percent target for the first time since April driven by higher prices for food, alcohol and tobacco. Asian markets ended mixed amid much uncertainty around tariffs and geopolitical tensions.

The BSE Sensex ended at 80157.88, down by 206.61 points or 0.26% after trading in a range of 80008.50 and 80761.14. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.27%, while Small cap index up by 0.64%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 1.62%, Utilities up by 1.47%, FMCG up by 1.12%, PSU up by 0.95% and Metal up by 0.90%, while Bankex down by 0.68%, Telecom down by 0.59%, TECK down by 0.28%, Auto down by 0.23%, and Consumer Durables down by 0.13% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid Corp up by 2.04%, NTPC up by 1.75%, Tata Steel up by 1.31%, Hindustan Unilever up by 1.27% and Reliance Industries up by 0.97%. On the flip side, Mahindra & Mahindra down by 2.38%, ICICI Bank down by 1.36%, Asian Paints down by 1.33%, Kotak Mahindra Bank down by 1.11% and Tata Motors down by 0.78% were the top losers. (Provisional)

Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that engineering, procurement and construction (EPC) companies could see mid-to-high single-digit revenue growth and largely stable margins, with some upside, in the ongoing financial year (FY26). It said this is despite the undemanding base effect of FY25 when revenue slumped 4-5 per cent year-on-year with the absolute sector EBITDA remaining largely flat, hit by the busy election season.

According to the report, the EPC sector across 22 listed entities delivered revenue growth of 5 per cent y-o-y in the first quarter of the current fiscal year, marking the fifth consecutive quarter of single-digit revenue growth. It said the hopes of strong start to FY26 by the EPC sector have not materialised, despite an undemanding base of the past year, hit by the election impact. Guidance by the companies suggests aggregate revenue growth of 12.7 per cent year-on-year, around 100bp lower than the earlier guidance. 

Krishan Binani, Director, Corporate Ratings, Ind-Ra said this is susceptible to further downside as the companies' guidance heavily relies on the hopes of a second-half recovery and assumption of robust order flows from the Ministry of Road Transport and Highway/National Highway Authority of India, after the recent announcement of a project-wise pipeline worth Rs 3.5 trillion, to be awarded in FY26. Margin recovery hopes have also receded with aggregate guidance suggesting a 20bps improvement at 10.8 per cent in FY26 versus the past quarter's assumption of 11 per cent. Central and state capex is likely to grow faster in FY26 with a lean election season, yet the overall sentiment for fresh investments remains muted, given the uncertain policy environment.

The CNX Nifty ended at 24579.60, down by 45.45 points or 0.18% after trading in a range of 24522.35 and 24756.10. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid Corp up by 2.45%, Tata Consumer Products up by 2.33%, Nestle up by 2.26%, NTPC up by 1.69% and Tata Steel up by 1.42%. On the flip side, Mahindra & Mahindra down by 2.44%, Dr. Reddy's Lab down by 2.05%, Kotak Mahindra Bank down by 1.33%, ICICI Bank down by 1.19% and Asian Paints down by 1.18% were the top losers. (Provisional)

European markets were trading mostly in red; Germany’s DAX lost 286.63 points or 1.21% to 23,750.70 and UK’s FTSE 100 decreased 31.99 points or 0.35% to 9,164.35, while France’s CAC rose 1.6 points or 0.02% to 7,709.50.

Asian markets settled mostly higher on Tuesday despite technology shares succumbed to profit taking in China and Hong Kong after a recent powerful rally on AI optimism. Globally, all eyes are on upcoming US jobs and inflation data along with the Federal Reserve's rate decision for further cues. Chinese shares declined as the Country prepares for its military parade, which will take place on Wednesday in Beijing. However, Japanese shares rose, snapped a two-day losing streak amid mounting political uncertainty and increased bets for Bank of Japan rate hikes.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,858.13

-17.40

-0.45

Hang Seng

25,496.55

-120.87

-0.47

Jakarta Composite

7,801.58

65.51

0.84

KLSE Composite

1,576.70

1.58

0.10

Nikkei 225

42,310.49

121.7

0.29

Straits Times

4,298.51

22.44

0.52

KOSPI Composite

3,172.35

29.42

0.93

Taiwan Weighted

24,016.78

-54.95

-0.23
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