Indian equity benchmarks extended gains for fourth straight session on Tuesday, supported by gains in heavyweight stocks. After making a cautious start, soon traded in green and remained higher throughout the session, as investors remained optimistic about country’s economic outlook after the rating agency ICRA said that Indian economy is expected to grow at 6.7% in April-June period of current fiscal, higher than 6.5% a year ago.

Some of the important factors in today’s trade:

India’s unemployment rate dips to 5.2% in July: Some support also came as the government data showed that the rate of unemployment in the country declined to 5.2 per cent in July from 5.6 per cent in June. 

Commerce & Industry Ministry mulling further FDI regime easing, more tax benefits for startups: Traders took some support as the commerce and industry ministry is working on a 100-day reforms agenda which may include proposals such as further liberalising FDI regime, easing investments from neighbouring countries, and more tax benefits for startups.

Foreign fund inflows: Sentiments remained upbeat as Foreign institutional investors turned net buyers after 4 sessions, purchasing Indian equities worth Rs 551 crore on Monday.

Global front: European markets were trading in green, as investors weighed the possibility of a peace deal between Russia and Ukraine. Asian markets ended mostly in red as investors awaited keynote speeches from top central bankers, including Fed Chair Jerome Powell for signals on the path of interest rates.

The BSE Sensex ended at 81644.39, up by 370.64 points or 0.46% after trading in a range of 81315.44 and 81755.88. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.97%, while Small cap index up by 0.97%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.49%, Energy up by 1.48%, Auto up by 1.45%, Consumer Discretionary up by 1.25% and Telecom up by 1.04%, while no losing sectoral indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 3.46%, Adani Ports & Special Economic Zone up by 3.12%, Reliance Industries up by 2.89%, Eternal up by 1.97% and Tech Mahindra up by 1.75%. On the flip side, Bajaj Finserv down by 0.95%, Power Grid Corp down by 0.76%, Mahindra & Mahindra down by 0.75%, HDFC Bank down by 0.58% and Bharat Electronics down by 0.47% were the top losers. (Provisional)

Meanwhile, the finance minister Nirmala Sitharaman has said that the government reduced its debt burden over the last five years and the fiscal deficit targets are being aligned to reduce it further in the coming years. She noted that the government has steadily reduced the debt over the years from 61.4 per cent of GDP in 2020-21, after the Covid-19 pandemic, to 56.1 per cent of GDP in the Budget Estimate for 2025-26. 

Further, the minister said the government aims to keep the fiscal deficit in each year in such a manner that the Central government debt is on a declining path to attain a debt to GDP level of about 50 (plus/minus 1) per cent by March 31, 2031. The government’s outstanding debt at the end of FY 2024-25 is provisionally estimated at Rs 185.94 lakh crore. While internal debt accounts for as much as Rs 157.11 lakh crore of this amount, external debt comprises Rs 8.74 lakh crore, while the remaining Rs 20.09 lakh crore is made up of other public account liabilities. 

Sitharaman said despite an environment of unprecedented geopolitical uncertainty, supply chain disruptions, and a weak global growth outlook, the Indian economy has exhibited resilience, underpinned by prudent macroeconomic management, credible fiscal consolidation, a resilient external sector performance, and sustained structural reforms. India remains the fastest-growing major economy, registering a real GDP growth of 6.5 per cent in 2024-25. 

She further said the fiscal deficit of the Union government has come down from 9.2 per cent of GDP in 2020-21 to 4.8 per cent of GDP in 2024-25, and is budgeted to further decline to 4.4 per cent of GDP in 2025-26. The average retail inflation rate, measured by the Consumer Price Index, stood at 4.6 per cent in 2024-25, the lowest in the last six years, and has eased further to 2.4 per cent in April-July 2025. Despite weakened global trade, India's export performance has demonstrated resilience, with the country's overall exports reaching an all-time high of $824.96 billion in 2024-25. This positive trend has continued into the current fiscal year, with overall exports registering an increase of 5.46 per cent during the first quarter.

The CNX Nifty ended at 24980.65, up by 103.70 points or 0.42% after trading in a range of 24873.95 and 25012.65. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 3.62%, Adani Ports & Special Economic Zone up by 3.22%, Reliance Industries up by 2.78%, Hero MotoCorp up by 2.69% and Bajaj Auto up by 2.41%. On the flip side, Dr Reddy's Laboratories down by 1.47%, Bajaj Finserv down by 1.07%, Cipla down by 1.04%, Hindalco down by 1.04% and Mahindra & Mahindra down by 0.86% were the top losers. (Provisional)

European markets were trading higher; France’s CAC rose 76.95 points or 0.98% to 7,961.00, Germany’s DAX gained 84.03 points or 0.35% to 24,398.80 and UK’s FTSE 100 increased 28.71 points or 0.31% to 9,186.45.