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Bourses trim some gains in early afternoon session
Sep-04-2025

Indian markets trimmed some of their gains, but continued to trade in green in early afternoon session as investors reacted positively to the major Goods and Services Tax (GST) reforms announced by Finance Minister Nirmala Sitharaman. Besides, traders got support as government data has showed that Foreign Direct Investments (FDI) equity inflow in India increased by 15% to $18.62 billion during April-June period of this fiscal year (FY26), as compared to $16.17 billion in the same period of last fiscal. Sector wise, automobile sector remained in limelight after GST Council cut taxes on small cars, bikes up to 350cc, and three-wheelers to 18%, down from 28% earlier. GST has also been reduced from 28% to 18% on buses, trucks, and ambulances. There is a uniform rate of 18% on all auto parts, irrespective of the HS code.

On the global front, Asian markets were trading mixed as traders were hoping that US Fed will lower interest rates by at least a quarter point later this month after a report showed job openings in the U.S. fell to their lowest level in ten months in July.

The BSE Sensex is currently trading at 80804.64, up by 236.93 points or 0.29% after trading in a range of 80790.36 and 81456.67. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.32%, while Small cap index was down by 0.28%.

The top gaining sectoral indices on the BSE were Auto up by 1.16%, Consumer Disc up by 0.57%, FMCG up by 0.54%, Consumer Durables up by 0.26% and Bankex was up by 0.13%, while Oil & Gas down by 0.77%, PSU down by 0.70%, Utilities down by 0.64%, Energy down by 0.57% and IT was down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 5.62%, Bajaj Finance up by 4.12%, Bajaj Finserv up by 2.09%, Trent up by 1.91% and ITC up by 1.00%. On the flip side, Bharat Electronics down by 1.27%, Power Grid down by 1.12%, Sun Pharma down by 1.02%, HCL Tech down by 0.96% and Maruti Suzuki down by 0.94% were the top losers.

Meanwhile, government data has showed that Foreign Direct Investments (FDI) equity inflow in India increased by 15% to $18.62 billion during April-June period of this fiscal year (FY26), as compared to $16.17 billion in the same period of last fiscal. In March quarter 2024-25, the inflows fell 24.5% year-on-year to $9.34 billion. FDI inflows from the US nearly tripled to $5.61 billion during the April-June quarter as against $1.50 billion in April-June 2024-25 despite tariff issues. Further, the total FDI, which includes equity inflows, reinvested earnings and other capital, increased to $25.2 billion during the quarter under review as against $22.5 billion in the same period of 2024-25. 

The data showed that after US, the Singapore was the second largest source of FDI with $4.59 billion followed by Mauritius with $2.08 billion, Cyprus with $1.1 billion, the UAE with $1 billion, Cayman Islands with $676 million, the Netherlands with $667 million, Japan with $551 million and Germany with $191 million. On the sectoral front, computer software and hardware received FDI inflows worth $5.4 billion, services received $3.28 billion, trading received $506 million, telecommunication received $24 million, automobile received $1.29 billion, construction development received $75 million, non-conventional energy $1.14 billion and chemicals received $140 million during April-June quarter. The data also showed that Karnataka received the highest inflow of $5.69 billion during the quarter.

The government has put in place an investor-friendly FDI policy, under which most sectors are open for 100% overseas inflows through the automatic route. The government has undertaken reforms across multiple sectors to liberalise FDI norms. During 2014 to 2019, the government had undertaken significant reforms including increased FDI caps in defence, insurance, and pension sectors, and liberalised policies for construction, civil aviation, and single brand retail trading. From 2019 to 2024, notable measures included allowing 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74% to 100% for companies investing their entire premium within India.

The CNX Nifty is currently trading at 24770.85, up by 55.80 points or 0.23% after trading in a range of 24768.25 and 24980.75. There were 19 stocks advancing against 30 stocks declining on the index, while 1 stock remained unchanged. 

The top gainers on Nifty were Mahindra & Mahindra up by 5.57%, Bajaj Finance up by 4.22%, Bajaj Finserv up by 2.17%, Trent up by 1.78% and Apollo Hospital up by 1.67%. On the flip side, Tata Consumer down by 2.38%, HDFC Life Insurance down by 1.38%, Indusind Bank down by 1.26%, Bharat Electronics down by 1.24% and Power Grid down by 1.14% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 594.11 points or 1.4% to 42,533.00, Taiwan Weighted added 79.55 points or 0.33% to 24,179.85, KOSPI increased 16.41 points or 0.51% to 3,200.83 and Straits Times was up by 10.26 points or 0.24% to 4,299.59. On the flip side, Jakarta Composite plunged 19.22 points or 0.24% to 7,866.64, Shanghai Composite weakened 47.68 points or 1.25% to 3,765.88 and Hang Seng was down by 312.43 points or 1.23% to 25,031.00.
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