Indian equity benchmarks extended gaining streak for the second consecutive session and ended nearly 1 per cent higher on Wednesday, tracking a rally in global markets amid signs of easing tensions in the Middle East following a ceasefire between Iran and Israel. Besides, favourable monsoon forecast, and moderating inflation further underpinned the optimism.  

Some of the important factors in today’s trade: 

Free trade agreements with US, EU to be concluded soon: Finance Minister Nirmala Sitharaman has said that negotiations for the proposed free trade agreements with the US and European Union (EU) are progressing at a fast pace and would be concluded soon. All efforts are being made to boost exports to achieve the ambitious target of $2 trillion by 2030.

India-US trade deal to reduce surplus: A research report by CRISIL said the imminent bilateral trade agreements (BTA) with the US is likely to reduce India's goods trade surplus with that country. During the financial year 2024-25, India's trade surplus with the US stood at $41.18 billion.

India, UK to sign trade pact by July end: A private report said that the process of legal scrubbing of the India-UK free trade agreement (FTA) text is progressing at a faster pace, and the pact is expected to be signed by the end of July.

FIIs continue to withdraw capital: Provisional stock exchange data showed foreign institutional investors (FIIs) pulled out Rs 5,266 crore from Indian equities on Tuesday, recording their largest single-day outflow for June. The heavy selloff came amid persistent geopolitical tensions and global risk aversion. 

Global front: European markets were trading mostly in red as France's consumer confidence held steady in June and remained well below its long-term average. Asian markets settled mostly higher on Wednesday as the fragile Iran-Israel truce took hold and balanced comments from Federal Reserve Chair Jerome Powell prompted traders to price in two Fed cuts by the end of 2025, with a first move in September far more likely than next month. 

Finally, the BSE Sensex rose 700.40 points or 0.85% to 82,755.51 and the CNX Nifty was up by 200.40 points or 0.80% to 25,244.75.  

The BSE Sensex touched high and low of 82,815.91 and 82,339.57 respectively. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.63%, while Small cap index was up by 1.59%.

The top gaining sectoral indices on the BSE were TECK up by 1.69%, IT up by 1.68%, Telecom up by 1.42%, Consumer Discretionary up by 1.26 and Consumer Durables up by 1.26%, while Capital Goods down by 0.54%, PSU down by 0.17% and Oil & Gas down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 3.61%, Infosys up by 2.15%, Mahindra & Mahindra up by 2.13%, Bharti Airtel up by 1.69% and TCS up by 1.68%. On the flip side, Bharat Electronics down by 3.06%, Kotak Mahindra Bank down by 1.14% and Axis Bank down by 0.66% were the top losers.

Meanwhile, expressing optimism over India’s growth prospects, Union Commerce and Industry Minister Piyush Goyal has said that India is firmly on track to become a $5 trillion economy by 2027 despite global turbulence, driven by a collective national effort and strong leadership under Prime Minister Narendra Modi. He noted that this will be the first milestone on the country’s journey to ‘Viksit Bharat’ by 2047. He also hailed the government’s decade-long economic reforms as transformational rather than incremental.

Taking note of the global economic volatility and geopolitical headwinds, he said India must navigate turbulent waters with unity and determination. He said ‘Great economies aren’t built in calm waters. This is India’s time. We must seize the moment and work together to claim our rightful place among the world’s leading nations’. He described the government’s development model as one focused on inclusive, sustainable, and honest growth, emphasising service, good governance, and innovation.

Citing economic indicators, he said India has moved from being part of the ‘Fragile Five’ to becoming one of the top five global economies. He highlighted the country’s foreign exchange reserves, which recently touched $698 billion, robust banking sector health, and inflation levels averaging among the lowest in post-independence history. He also pointed to the government’s aggressive free trade agreements (FTAs) with developed economies such as the UK, Australia, and the EU, which he said are designed to benefit Indian exporters and MSMEs. 

Touching on the potential of AI and emerging technologies, he said India is ready to lead in sectors like artificial intelligence, quantum computing, and 3D printing. He urged businesses to expand and bring economy of scale to foray into new markets and focus on innovation-led exports. He added ‘This is a virtuous cycle - scale leads to competitiveness, which in turn fuels exports and prosperity. India’s growth story belongs to all of us’.

The CNX Nifty traded in a range of 25,266.80 and 25,125.05. There were 42 stocks advancing against 8 stocks declining on the index. 

The top gainers on Nifty were Titan Company up by 3.66%, Mahindra & Mahindra up by 2.16%, Grasim Industries up by 2,13%, Infosys up by 1.95%, and JSW Steel up by 1.75%. On the flip side, Bharat Electronics down by 2.92%, Kotak Mahindra Bank down by 1.29%, Eicher Motors down by 0.93%, ONGC down by 0.87% and Axis Bank down by 0.84% were the top losers.

European markets were trading mostly in red; France’s CAC fell 15.02 points or 0.2% to 7,600.97 and Germany’s DAX lost 91.26 points or 0.39% to 23,550.32, while UK’s FTSE 100 increased 1.25 points or 0.01% to 8,760.24.

Asian markets settled mostly higher on Wednesday following Israel-Iran ceasefire relief. A US-brokered ceasefire between Israel and Iran appeared to be holding, but Israeli forces continued their war on Gaza by killing at least 41 Palestinians since midnight. Meanwhile, some hopes for an earlier than expected interest rate cut from the Federal Reserve also supported market sentiments. Japanese shares jumped, despite the broadly positive cues from Wall Street overnight.