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Key gauges extend gains in morning deals
May-21-2025

Indian equity benchmarks extended gains in morning deals amid buying in blue-chip bank stocks and a firm trend in Asian peers. Traders took support with the Ministry of Labour & Employment in its statement stating that retail inflation for farm as well as rural workers eased marginally to 3.48 per cent and 3.53 per cent, respectively, in the month of April compared to the pace of price hikes for the two categories at 3.73 per cent and 3.86 per cent recorded in March. Some support also came as PHDCCI Secretary General Ranjeet Mehta stated that the industry is hopeful of a rate cut by the Reserve Bank very soon and expects India's economic growth at more than 6.5 per cent in the current financial year. Besides, the government is planning to amend the Insolvency and Bankruptcy Code (IBC) to streamline the resolution process. A key change involves Section 31(4), potentially removing the requirement for bidders to secure CCI approval before submitting resolution plans to the Committee of Creditors (CoC). On the global front, Asian markets are trading mostly in green despite rising geopolitical tensions, growing concerns over U.S. debt and a spike in Covid-19 cases in Southeast Asia.

The BSE Sensex is currently trading at 82009.69, up by 823.25 points or 1.01% after trading in a range of 81255.73 and 82021.64. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.04%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.57%, Auto up by 1.56%, Healthcare up by 1.54%, Industrials up by 1.34% and Realty up by 1.24%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Sun Pharma up by 2.14%, Bajaj Finance up by 1.95%, Mahindra & Mahindra up by 1.92%, Bajaj Finserv up by 1.82% and Ultratech Cement up by 1.72%. On the flip side, Indusind Bank down by 1.21% was the top loser.

Meanwhile, in today’s interconnected and fast-paced global economy, Finance Minister Nirmala Sitharaman has said that delays in regulatory clearances can lead to uncertainty, disrupt commercial timelines, and potentially erode the intended value of transactions. According to her, it is imperative that regulatory frameworks, while maintaining rigorous oversight, also facilitate swift and seamless approvals for combinations that pose no harm to competition. India is negotiating trade deals with various countries and blocs, including the US and the European Union.

She said the regulator has emerged as a key institution in safeguarding the spirit of liberalisation while checking its excesses and stressed that competition drives efficiency, nurtures innovation, and benefits consumers. Delving into the aspects of competitive markets, she said that not only business conduct but also government policies, laws and regulations should not influence competition as she mentioned that entry barriers, licensing norms or procurement rules can also create distortion.

She stated ‘Globally, it has an impact even as we negotiate free trade agreements with different countries because the ability, the nimbleness and the readiness of regulators is very keenly watched by investors. There is no need for me to underline the importance of that, but that has a very serious connotation when you are looking at fairly within a reasonable time, agreeing on some free trade agreements. So, whether it is litigation, whether it is time consumed in litigation or when regulators are less transparent, negotiations can get complicated.’

While pitching for regulatory frameworks to facilitate swift and seamless approvals for combinations that pose no harm to competition, she also mentioned about the Green Channel mechanism that has been put in place by Competition Commission of India (CCI). She added the mechanism, which is a trust-based, risk-calibrated approach, allows for automated approval of combinations that are deemed to have no appreciable adverse effect on competition in order to reduce transaction costs and timelines for benign mergers and acquisitions.

The CNX Nifty is currently trading at 24916.10, up by 232.20 points or 0.94% after trading in a range of 24692.65 and 24946.20. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 3.77%, Cipla up by 2.28%, Bajaj Auto up by 2.15%, Sun Pharma up by 2.07% and Ultratech Cement up by 1.78%. On the flip side, Indusind Bank down by 1.24% and Shriram Finance down by 0.06% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 301.2 points or 1.4% to 21,827.23, Hang Seng advanced 208.06 points or 0.88% to 23,889.54, KOSPI increased 27.76 points or 1.07% to 2,629.56, Jakarta Composite gained 61.65 points or 0.86% to 7,156.25 and Shanghai Composite strengthened 9.59 points or 0.28% to 3,390.07.

On the flip side, Nikkei 225 slipped 116.6 points or 0.31% to 37,412.89 and Straits Times fell 3.87 points or 0.1% to 3,878.63. 
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