Indian equity benchmarks recovered from early losses and ended near the day’s highs ahead of the Reserve Bank of India’s rate decision scheduled for Wednesday. Markets made a gap-down opening, amid growing uncertainty over a US deadline for Iran to reopen the Strait of Hormuz. However, sentiments improved as the session progressed, with indices erasing all losses and closing with strong gains, supported by buying in IT and metal stocks.

Some of the important factors in trade:

India has enough fiscal space to push capex, support sectors impacted by West Asia crisis: Traders found some support with Finance Minister Nirmala Sitharaman’s statement that strong fiscal discipline has given India enough flexibility to increase capital expenditure, support sectors affected by the West Asia crisis, and allow the Reserve Bank of India to consider further rate cuts.

RBI keeps investment limit for FPIs in G-secs unchanged for FY27: Traders took note of the Reserve Bank’s statement that the investment limit for foreign portfolio investors in government securities through the general route will remain unchanged at 6 per cent of the outstanding stocks of securities for 2026-27.

India’s GDP growth likely at 6.7% in FY27 despite geopolitical tensions: Some support came as CareEdge Ratings’ report stated that India’s economic growth is expected to remain resilient in the face of rising global uncertainties, with GDP projected to expand at 6.7 per cent in FY27.

On the global front: European markets were trading in green as traders picked up stocks despite lingering concerns about the conflict in the Middle East. Asian markets ended mostly higher, following the broadly positive cues from Wall Street overnight. 

The BSE Sensex ended at 74616.58, up by 509.73 points or 0.69% after trading in a range of 73282.41 and 74686.32. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 2.37%, TECK up by 2.23%, Realty up by 1.70%, Metal up by 1.55% and Basic Materials up by 0.83%, while Consumer Durables down by 0.18% and Consumer Discretionary down by 0.08% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 2.81%, HCL Technologies up by 2.67%, Infosys up by 2.59%, Bharti Airtel up by 2.13% and Hindustan Unilever up by 1.68%. On the flip side, Interglobe Aviation down by 0.87%, Trent down by 0.62%, SBI down by 0.55%, Adani Ports and Special Economic Zone down by 0.44% and Titan company down by 0.31% were the top losers. (Provisional)

Meanwhile, the Ministry of Textiles in its latest study report on domestic demand of textiles ‘Market for Textiles and Clothing: National Household Survey 2024’ has showed that India’s textile market has expanded over the last 15 years, growing from Rs 4.89 lakh crore in 2010 to Rs 14.95 lakh crore in 2024 at a compound annual growth rate (CAGR) of 8.3%. Out of this total market size, the household segment has emerged as a major growth engine, with its contribution rising from Rs 4.18 lakh crore in 2010 to Rs 8.77 lakh crore in 2024, significantly boosting overall domestic demand.

The study, conducted by the Textiles Committee under the Ministry, estimates the domestic demand in the Textiles and Clothing (T&C) sector and serves as an important reference for trade and industry stakeholders in addition to the policy makers to develop desired strategy for the growth of the sector. As per the study report, the per capita demand increased from Rs 2,119 in 2010 to Rs 6,066 in 2024 experiencing a CAGR growth of 7.8%, reflecting a strong growth trajectory. The estimates show a robust growth in per capita demand in textiles by the individuals during the same period.

Further, it showed that Man Made Fibre (MMF) & blended fiber based products are contributing 52.2%, followed by 41.2% by cotton based products. On the other hand, Silk and Woollen fiber based products are contributing 5.2% and 1.3% respectively to the product basket. In absolute terms, the demand for MMF & blended textiles recorded most significant growth, with demand increasing from Rs 1.47 lakh crore to Rs 4.47 lakh crore, with a CAGR of 8.28%. Cotton maintained its position as the second most important fiber, with aggregate demand increasing from Rs 0.87 lakh crore to Rs 3.53 lakh crore with a CAGR of 10.53%.The demand for Silk and Wool based products increased at CAGR of 8.93% and 7.02% respectively during same period.

The CNX Nifty ended at 23123.65, up by 155.40 points or 0.68% after trading in a range of 22719.30 and 23153.85. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Wipro up by 3.71%, Hindalco up by 2.92%, TCS up by 2.72%, HCL Technologies up by 2.65% and Infosys up by 2.59%. On the flip side, Dr. Reddy's Lab down by 1.78%, Interglobe Aviation down by 1.01%, Adani Enterprises down by 0.88%, Apollo Hospital down by 0.60% and Mahindra & Mahindra down by 0.50% were the top losers. (Provisional)

European markets were trading higher; France’s CAC rose 95.11 points or 1.19% to 8,057.50, UK’s FTSE 100 increased 29.28 points or 0.28% to 10,465.57 and Germany’s DAX gained 184.62 points or 0.8% to 23,352.70.