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Markets pare some gains in afternoon session
Sep-18-2025

Indian equity markets have pared some gains, but continued to trade above the unchanged lines in afternoon session. Investors took some support after rating agency Crisil has indicated that the current account deficit (CAD) of India is likely to remain under control at 1% of gross domestic product (GDP) in the current financial year (FY26), despite of the challenges faced by the economy from higher tariffs and global geopolitical headwinds. Besides, Union Commerce Minister Piyush Goyal expressed confidence that India's exports would grow by around 6 per cent this year compared to the corresponding period in 2024, has helped markets to sustain in the positive territory. 

On the sectoral front, Asian equity markets were trading mixed, while all European equity markets were trading higher after the U.S. Federal Reserve cut interest rates by 25 basis points.

The BSE Sensex is currently trading at 82742.34, up by 48.63 points or 0.06% after trading in a range of 82704.92 and 83141.21. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index gained 0.16%, while Small cap index down was by 0.14%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.69%, IT up by 0.68%, TECK up by 0.41%, Metal up by 0.09% and Bankex up by 0.03%, while Capital Goods down by 0.47%, Industrials down by 0.36%, Basic Materials down by 0.33%, PSU down by 0.32% and Energy down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 1.74%, Sun Pharmaceutical Industries up by 1.46%, Infosys up by 1.06%, HDFC Bank up by 0.54% and HCL Technologies up by 0.50%. On the flip side, Bajaj Finance down by 1.59%, Tata Motors down by 1.31%, Ultratech Cement down by 1.16%, Trent down by 1.14% and Asian Paints down by 0.87% were the top losers.

Meanwhile, Ministry of New & Renewable Energy (MNRE) has said that the GST rationalisation will accelerate India's clean energy transition and can potentially save up to Rs 1.5 lakh crore for adding remaining 300GW capacity by 2030. This assumes significance in view of India's ambitious target of having 500 GW of renewable energy by 2030. India has about 193 GW of installed RE capacity excluding large hydro plants and including 123 GW of solar and about 53 GW of wind energy as of August 31, 2025.  

MNRE said given that India plans to add around 300 GW of renewable energy capacity by 2030, even a modest 2 to 3 per cent cost reduction can free up Rs 1-1.5 lakh crore in investment capacity. The rationalization of GST rates across the renewable energy value chain from 12 per cent to 5 per cent will bring down the cost of clean energy projects, making electricity more affordable and directly benefiting households, farmers, industries, and developers. For instance, the capital cost of a utility-scale solar project, which typically amounts to around Rs 3.5-4 crore per MW, will now see savings of Rs 20-25 lakh per MW. At the scale of a 500 MW solar park, this translates into project cost reductions of over Rs 100 crore, significantly improving tariff competitiveness. 

It said the reduction in GST is expected to lower levelised renewable tariffs easing the financial burden of electricity procurement for distribution companies (DISCOMs). This could translate into nationwide annual savings of Rs 2,000-3,000 crore in power procurement costs. End consumers will benefit from greater access to affordable clean electricity, reinforcing the long-term sustainability of India's power sector. The reform will make rooftop solar systems more affordable for households. A typical 3 kW rooftop system will now be cheaper by Rs 9,000-10,500, making it easier for lakhs of families to adopt solar energy and accelerating large-scale uptake under the PM Surya Ghar: Muft Bijli Yojana. Farmers under the PM-KUSUM scheme will also benefit significantly.

It further said a 5 HP solar pump, costing about Rs 2.5 lakh, will now be cheaper by nearly Rs 17,500. At the scale of 10 lakh solar pumps, farmers collectively stand to save Rs 1,750 crore, making irrigation more affordable and sustainable. Rural and underserved regions will also gain from cheaper decentralized solutions such as mini-grids, livelihood applications, and solar water pumps. The shorter payback periods and improved returns will empower schools, health centres, and small businesses with clean and reliable energy access. Lower GST will enhance the competitiveness of Indian-made renewable energy equipment by reducing module and component costs by 3-4 per cent, supporting the Make in India and Aatmanirbhar Bharat initiatives. With India targeting 100 GW of solar manufacturing capacity by 2030, the reform will encourage fresh investment into domestic manufacturing hubs. 

The CNX Nifty is currently trading at 25341.30, up by 11.05 points or 0.04% after trading in a range of 25335.65 and 25448.95. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 1.97%, Eternal up by 1.75%, Sun Pharmaceutical Industries up by 1.42%, Infosys up by 1.14% and Cipla up by 0.86%. On the flip side, Coal India down by 1.79%, Bajaj Finance down by 1.59%, Tata Motors down by 1.31%, Trent down by 1.16% and Ultratech Cement down by 1.12% were the top losers.

Asian equity markets were trading mixed; Nikkei 225 surged 591.62 points or 1.3% to 45,382.00, Taiwan Weighted added 331.11 points or 1.28% to 25,769.36 and KOSPI increased 47.90 points or 1.38% to 3,461.30, while Hang Seng declined 346.39 points or 1.3% to 26,562.00, Straits Times fell 10.48 points or 0.24% to 4,313.30, Shanghai Composite weakened 44.68 points or 1.17% to 3,831.66 and Jakarta Composite plunged 23.41 points or 0.29% to 8,001.77.

All European equity markets were trading higher; UK’s FTSE 100 increased 29.08 points or 0.32% to 9,237.45, France’s CAC rose 88.52 points or 1.14% to 7,875.50 and Germany’s DAX gained 317.12 points or 1.36% to 23,676.30.
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