Sensex Surges Amid Trade Deal Hopes and Record GST Collections
Market Overview
Mumbai: The BSE benchmark index, Sensex, closed up by 260 points on Friday, buoyed by optimism regarding a potential trade agreement between India and the US, record GST collections in April, and ongoing foreign investment inflows.
Additionally, a positive trend in global markets contributed to the upbeat sentiment in the equity sector.
After a significant rally during the day, the 30-share BSE index ultimately gained 259.75 points, or 0.32%, finishing at 80,501.99. At its peak, the index had surged by 935.69 points, reaching 81,177.93.
In a day marked by volatility, the NSE Nifty managed a slight increase of 12.50 points, or 0.05%, closing at 24,346.70.
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, the markets experienced considerable fluctuations in the first half, swinging nearly 1,000 points before stabilizing due to selective buying in banking and IT sectors. Following the recent surge, investors engaged in profit-taking, leading to a weaker performance in broader markets. The current fragile global environment, characterized by geopolitical tensions and a tariff war, has made investors cautious about making significant bets on equities.
Among the Sensex constituents, Adani Ports saw a rise of over 4% after announcing a 50% increase in its net profit for the March quarter and projecting higher year-on-year revenue growth for the current fiscal year, driven by strong port volume growth and a robust logistics sector.
Other gainers included Bajaj Finance, IndusInd Bank, State Bank of India, Maruti, Tata Motors, ITC, Tata Steel, and Reliance Industries.
Conversely, Nestle, NTPC, Kotak Mahindra Bank, Power Grid, and Titan were among the stocks that lagged.
The Goods and Services Tax (GST) collection reached an all-time high of approximately Rs 2.37 lakh crore in April, reflecting a year-on-year growth of 12.6%. The government attributed this achievement to the resilience of the Indian economy and effective cooperative federalism.
Furthermore, the Indian manufacturing sector's growth momentum improved in April, with output rising at the fastest rate since June 2024, supported by a strong expansion in order books, according to a monthly survey released on Friday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) increased from 58.1 in March to 58.2 in April, indicating the most significant improvement in the sector's health in ten months.
In Asian markets, South Korea's Kospi, Tokyo's Nikkei 225, and Hong Kong's Hang Seng indices closed positively, while the Shanghai SSE Composite index ended slightly lower.
European markets were also trading higher, and US markets finished positively on Thursday.
The global oil benchmark, Brent crude, fell by 0.82% to USD 61.62 per barrel.
Foreign Institutional Investors (FIIs) purchased equities worth Rs 50.57 crore on Wednesday, as per exchange data.
Equity markets were closed on Thursday in observance of 'Maharashtra Day.'
On Wednesday, the Sensex had decreased by 46.14 points, or 0.06%, closing at 80,242.24, while the Nifty ended slightly lower by 1.75 points, or 0.01%, at 24,334.20.