Market gains fizzle out as conflict concerns linger
China's commerce ministry's statement on Friday that it may be open to starting trade talks with the US raised hopes for de-escalation of the tariff war between the world's largest economies.
The BSE Sensex rose 0.3%, or 260 points, to end at 80,502. The NSE Nifty50 edged up 0.05%, or 13 points, to close at 24,347. Both indices gained 1.5% this week-marking the third straight weekly gain for Indian equities-the longest such streak since December 2024.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Mumbai: India's equity benchmarks ended slightly higher on Friday after giving up most of the early gains, as traders, worried over a possible military conflict between India and Pakistan, opted to cut some of their bets ahead of the weekend.The BSE Sensex rose 0.3%, or 260 points, to end at 80,502. The NSE Nifty50 edged up 0.05%, or 13 points, to close at 24,347. Both indices gained 1.5% this week-marking the third straight weekly gain for Indian equities-the longest such streak since December 2024."Domestic equity markets are nervous in the backdrop of a potential escalation in tensions between India and Pakistan," said Sunny Agrawal, head of fundamental equity research, SBI Securities. The stock market had risen over 1.04% earlier in the day, tracking strong trends in the rest of Asia, after China said that it was evaluating possible trade talks with the US, helping reverse weakness after disappointing results from Apple and Amazon.Chinese markets are shut for Labour Day. Hong Kong rose 1.7%. Taiwan jumped 2.7%, Japan gained 1%, South Korea moved up 0.1%, and Indonesia advanced 0.7%. The pan-Europe index Stoxx 600 was up 1.6% at the time of going to print.China's commerce ministry's statement on Friday that it may be open to starting trade talks with the US raised hopes for de-escalation of the tariff war between the world's largest economies.At home, Adani Ports led the Nifty gainers, rallying 4.1%, followed by Bajaj Finance , which rose 2.6%. JSW Steel shares fell 6% following a Supreme Court ruling that deemed the company's resolution plan for Bhushan Power & Steel (BPSL) as "illegal".
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
33 minutes ago
- New Indian Express
Karnataka leads country in adding wind power capacity
BENGALURU: Karnataka has topped the country in wind power capacity addition for 2024-25, adding 1,331.48 MW — the highest among all states. The achievement was recognised at the Global Wind Day 2025 celebrations, held under the theme 'Pawan-Urja: Powering the Future of India'. Tamil Nadu and Gujarat followed, with additions of 1,136.37 MW and 954.76 MW, respectively. Energy Minister KJ George, who received the award from Union Minister for New and Renewable Energy Pralhad Joshi, mentioned that Karnataka's total installed wind power capacity has now reached 7,351 MW and that the state has a commitment to the national goal of 500 GW of renewable energy by 2030, including 100 GW from wind. Joshi said, 'As a proud Kannadiga, it's meaningful to celebrate Global Wind Day in Karnataka — the land of Hanuman, the original symbol of wind power. Just as he embodied the power of the wind, we are now capturing it through modern offshore turbines.' Highlighting India's growing capabilities, Joshi said, 'In 2014, our solar manufacturing capacity was just 2-3 GW. Today, we manufacture 90 GW worth of modules. The same is happening in wind – nacelles, gearboxes, turbines – all are now being made in India.' He added that domestic manufacturing of high-end electronics like mobile phones, including Apple devices, has risen significantly because of government policy. 'Today, 97% of Apple phones exported to the US in March and April came from India,' he noted. The minister identified three key challenges - ensuring 24x7 power and grid stability through integration of wind, solar, and pumped storage, offering competitive power tariffs and boosting domestic manufacturing to position India as a global leader in green energy. Joshi also released a report titled 'Ramping Up Local Manufacturing for Wind Turbines in India', which outlines a strategy to strengthen India's wind turbine manufacturing ecosystem.
New Indian Express
33 minutes ago
- New Indian Express
Why urban India's woes hurting growth
The Indian urban consumer is struggling. Several indicators show that those in urban India are saving money and not spending. That happens when you are struggling with your income or face uncertainty. A survey by Kantar, a global research firm, showed growth in consumer companies by large established companies (HUL, Marico, Godrej, Dabur), which were growing relatively slower than lesser-known companies or brands. The unorganized sector grew even faster. That is a phenomenon called downtrading. The consumer chooses cheaper products or services than before to manage spending. That activity is an indicator of a wage growth slowdown. That does not bode well for companies that rely on largely urban and rural consumption, as two-thirds of India's gross domestic product is led by it. Urban consumption means rich, middle-income people in urban areas spend money on food, entertainment, travel, and other discretionary expenditures for comfort. Suppose you are a consumer in rural or urban India. In that case, you decide your consumption on your long-term average income and not on the current income patterns, according to one economic theory. If you are confident of your future income, you steadily increase your spending on consumption items. If the wage growth is likely to be weak, you slow down. Information is a key to your wealth. The more you learn and understand how the economy works, the better sense you can make of the market and money situation. The quarterly results season ended in May 2025. Besides that, a lot of information was published by the Reserve Bank of India in the monetary policy report about economic growth and inflation outlook. The RBI also wrote extensively about it in the annual report released towards the end of May 2025. The government also puts out information on industrial production and related data. According to the latest analysis by India Ratings, an affiliate of global credit ratings agency FITCH, wage growth in India will likely remain flat in 2025-26. The wage growth in India's economy was primarily driven by economic growth. There are two significant indicators of a slowdown. One is in the housing sector. Sales of luxury homes moderated after the pent-up demand peaked, according to India Ratings. The IT sector faced technological changes due to the advent of artificial intelligence. That has further hurt employment and salary prospects. The poor wage growth is also a function of companies choosing not to spend money on expansion or new job creation. There is something not adding up. Two areas drive a sustainable demand in an economy. One is the spending by households, and the second is the investment by the corporate sector. The aggregate household wealth was never as high as it is now. According to the National Stock Exchange data, the holding of individual investors in equity markets is at a record high, adding over half a trillion dollars to household wealth over the past five years. Benchmark indices are not far away from their historic highs. The urban wealthy consumer class has never had it better than now. Yet, the middle class in cities seems to be struggling. The benefits of personal income tax breaks extended in the Budget 2025 will be available for the middle class this year. However, if the middle class is unsure about their future income, they will continue to cut spending, which could continue to hurt the economy. Two weeks ago, this column spoke about India's growth story's headwinds. The income crisis for the middle class due to dim job prospects is hurting India's economy. It is time for everyone to think differently. Creating multiple income streams or businesses that solve new problems could be one way out. It is a structural issue and is unlikely to go away soon.
Time of India
33 minutes ago
- Time of India
Rising Israel-Iran conflict, India faces growing threats to its energy security, trade routes, and commercial ties: GTRI
The Indian Government should review energy risk scenarios, diversify crude sourcing and ensure strategic reserves of oil amid the ongoing conflict between Israel and Iran, according to a report by GTRI. The Global Trade Research Initiative (GTRI) has warned that India, though not directly involved in the Iran-Israel conflict, cannot afford to remain complacent. The report urged the Indian government to ensure that the country's strategic oil reserves are sufficient to handle any possible crisis. It stated, "India, though not a party to the conflict, cannot afford complacency. The government must urgently review energy risk scenarios, diversify crude sourcing, and ensure strategic reserves are sufficient". It further highlighted the need for stronger military preparedness in the Arabian Sea, especially around vital sea lanes and choke points. Live Events Diplomatically, the report recommends that India should use international platforms such as the G20 and the United Nations to push for peace, de-escalation, and protection of global trade routes. As tensions in West Asia rise, India faces growing threats to its energy security, trade routes, and commercial ties. The report states that the intensifying Israel-Iran conflict could have serious consequences for India's economy. India has major trade exposure with both nations. In FY2025, India exported goods worth USD 1.24 billion to Iran and imported goods worth USD 441.9 million. Trade with Israel is even larger, with USD 2.15 billion in exports and USD 1.61 billion in imports. However, the bigger concern of India right now is energy. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz , a narrow waterway now threatened by Iran. The Strait of Hormuz, just 21 miles wide at its narrowest point, handles nearly one-fifth of global oil trade. Since India depends on imports for over 80 per cent of its energy needs, any disruption here would lead to a sharp rise in oil prices, shipping costs, and insurance premiums. GTRI stated that this could fuel inflation, weaken the rupee, and create challenges for the government's financial planning. In addition, the report mentioned that nearly 30 per cent of India's westbound exports to Europe, North Africa, and the U.S. East Coast pass through the Bab el-Mandeb Strait. This route is now also at risk. If shipping is forced to take the longer route around the Cape of Good Hope, transit times could go up by two weeks, and freight costs would rise significantly. This would affect Indian exports such as engineering goods, textiles, and chemicals, and raise the cost of important imports. The recent conflict arose when Israel launched "Operation Rising Lion" on June 13. Over 200 aircraft and Mossad-led drones attacked Iran's military and nuclear sites. Iran also launched more than 150 ballistic missiles and drone swarms on Israeli cities like Tel Aviv and Jerusalem. Casualties are rising, GTRI stated that now, with U.S.-Iran nuclear talks cancelled, diplomatic efforts have broken down. Regional financial markets are also under pressure. Economic Times WhatsApp channel )
