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EQUITY
Post Session: Quick Review
Aug-20-2025

Indian equity benchmarks continued their winning streak for fifth straight day ahead of weakly F&O expiry. After making a cautious start, soon markets traded in green and remained higher throughout the session. Sentiments remained upbeat after parliamentary panel pitched for raising the investment rate from 31% of the Gross Domestic Product (GDP) to 35% in order to achieve the ambitious growth target of 8%.

Some of the important factors in today’s trade:

Proposed 2-tier GST structure could lower effective tax rate, boost revenues in long term: Some support came as S&P Global Ratings Director YeeFarn Phua said that the proposed 2-tier GST structure could lower effective taxation rate and boost fiscal revenues over the longer term.

India, China unveil raft of measures to fully realise their development potential: Some support also came as India and China have unveiled a series of measures for a stable, cooperative and forward-looking relationship that included jointly maintaining peace along the frontier, reopening border trade, promoting investment flows, and resuming direct flight connectivity at the earliest.

India, US negotiating agreement to liberalise trade in goods, non-sensitive agri products: Traders took note of Minister of State for Commerce and Industry Jitin Prasada's statement that India and the US are negotiating a multi-sector bilateral trade agreement and as a part of the negotiations, both sides are discussing liberalisation of trade in goods, including non-sensitive agricultural products.

Global front: European markets were trading mostly in green, while Asian markets ended mostly in green as investors kept a close eye on ongoing Ukraine peace talks and looked ahead to Fed Chair Jerome Powell's Jackson Hole speech due this week for more clarity on September rate cuts.

The BSE Sensex ended at 81857.84, up by 213.45 points or 0.26% after trading in a range of 81494.50 and 81985.62. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.39%, while Small cap index up by 0.30%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 2.61%, TECK up by 2.22%, FMCG up by 1.36%, Realty up by 1.04% and Telecom up by 0.68%, while Bankex down by 0.33%, Healthcare down by 0.21%, Oil & Gas down by 0.16%, Energy down by 0.15% and Auto down by 0.08% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 3.78%, TCS up by 2.64%, Hindustan Unilever up by 2.46%, NTPC up by 2.10% and Tech Mahindra up by 1.76%. On the flip side, Bharat Electronics down by 2.09%, Bajaj Finance down by 1.60%, Tata Motors down by 1.37%, Trent down by 0.72% and Bajaj Finserv down by 0.70% were the top losers. (Provisional)

Meanwhile, rating agency ICRA in its latest report has said that the India’s Gross Domestic Product (GDP) is expected to grow at 6.7 per cent in April-June period of current fiscal (Q1FY26), higher than 6.5 per cent a year ago, on the back of higher government capex and exports. This projection also outpaces the RBI's Monetary Policy Committee's (MPC's) forecast of 6.5 per cent growth in the June quarter. India's economy grew 7.4 per cent in March quarter of FY25. Official data for FY26 Q1 GDP is scheduled to be released on August 29, 2025.  

ICRA Chief Economist Aditi Nayar has said that investment activity held up in Q1 FY2026 was boosted by the front-loading of government capex. Although, this admittedly came on a low base amidst the heightened uncertainty owing to geopolitical tensions and tariff-related developments. She said benefitting from robust government capital as well as revenue spending, upfronted exports to some geographies and nascent signals of improved consumption, the pace of expansion in economic activity in Q1 FY2026 is estimated at 6.7 per cent. However, she cautioned against tapering off of GDP growth in the subsequent quarter amid continuing tariff-induced uncertainty for exports and private capex. This will limit India's GDP expansion at 6 per cent in current fiscal. 

Based on the CGA data, the government's gross capital expenditure spiked 52 per cent Y-o-Y to Rs 2.8 lakh crore in June quarter. Further, the value of new project announcements nearly doubled to Rs 5.8 lakh crore from Rs 3 lakh crore in Q1 FY2025.

The CNX Nifty ended at 25050.55, up by 69.90 points or 0.28% after trading in a range of 24929.70 and 25088.70. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The few gainers on Nifty were Infosys up by 3.90%, TCS up by 2.73%, Hindustan Unilever up by 2.50%, Nestle up by 2.49% and NTPC up by 2.07%. On the flip side, Bharat Electronics down by 2.16%, Bajaj Finance down by 1.61%, Shriram Finance down by 1.60%, Tata Motors down by 1.52% and Indusind Bank down by 0.93% were the top losers. (Provisional)

European markets were trading mostly in green; Germany’s DAX lost 49.07 points or 0.2% to 24,374.00 and France’s CAC rose 1.62 points or 0.02% to 7,980.70, while UK’s FTSE 100 increased 20.87 points or 0.23% to 9,210.09.

Asian markets ended mixed on Wednesday ahead of the release of minutes from the Fed's July meeting later in the day. Investors were also eyeing ongoing Ukraine peace talks and looked ahead to Fed Chair Jerome Powell's Jackson Hole speech due this week for more clarity on September rate cuts. Meanwhile, investors locked in profits in technology shares on concerns over valuations and reports of potential US government equity stakes in major chipmakers. Chinese shares gained as the PBoC kept its benchmark loan prime rate unchanged as expected despite recent weak economic data. Hong Kong shares rose even after the Trump administration said it was targeting more imports of Chinese goods, including steel, copper and lithium, for high-priority enforcement over alleged human-rights abuses involving the Uyghurs. Seoul shares declined as big-cap technology shares tracked overnight losses of US technology giants. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,766.21

38.92

1.03

Hang Seng

25,165.94

43.04

0.17

Jakarta Composite

7,943.82

80.87

1.03

KLSE Composite

1,588.21

-2.03

-0.13

Nikkei 225

42,888.55

-657.74

-1.51

Straits Times

4,219.54

3.35

0.08

KOSPI Composite

3,130.09

-21.47

-0.69

Taiwan Weighted

23,625.44

-728.06

-3.08
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