Key equity indices extend gains to trade near day's high; European markets advance

The domestic equity indices extended gains and edged higher in afternoon trade, as strong domestic macroeconomic data lifted investor spirits. The Nifty traded near the 24,600 level. At 13:26 IST, the barometer index, the S&P BSE Sensex was up 469.23 points or 0.59% to 80,278.88. The Nifty 50 index added 164.40 points or 0.67% to 24,591.25. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 1.21% and the S&P BSE Small-Cap index rose 0.88%. The market breadth was strong. On the BSE, 2,700 shares rose and 1,378 shares fell. A total of 196 shares were unchanged. Economy: The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) stood at 59.3 in August compared with 59.1 in July 2025. The upward movement in the headline figure largely reflected an acceleration in growth of production volumes. The rate of expansion was the quickest in close to five years. When explaining the rise, panel members pointed to a better alignment of supply with demand. India’s economy picked up momentum in the April–June quarter, defying expectations of slower growth, even as higher U.S. tariffs on Indian exports loom as a potential drag in the months ahead. Gross domestic product (GDP) grew 7.8% in the quarter, the strongest pace in five quarters, compared with 7.4% in the previous three-month period, according to government data released Friday. Gross value added (GVA) — considered a better gauge of underlying economic activity since it excludes indirect taxes and subsidy transfers — rose 7.6% during the same period, up from 6.8% in the prior quarter. At this rate, India continues to rank among the world’s fastest-growing major economies, though the outlook for exports has darkened following U.S. President Donald Trump’s tariff hike. Stocks in Spotlight: Bajaj Auto gained 3.86%. The auto maker has reported 5% increase in total auto sales for August 2025, selling 4.17 lakh units as against 3.97 lakh units sold in August 2024. Neogen Chemicals advanced 3.06%. The company announced that its wholly owned subsidiary Neogen Ionics (NIL) has entered into a joint venture agreement (JVA) with Morita Investment. NIL and MIL have entered into a JVA with the object to utilise the technological and manufacturing capabilities of both organisations and to utilise these synergies to participate in the rapidly growing Lithium-Ion Battery business. Global Markets: Markets in Europe traded higher while their Asia peers traded in a mixed manner on Monday as investors weighed China’s latest manufacturing data and broader geopolitical developments. China’s RatingDog Manufacturing Index — previously known as the Caixin PMI — came in at 50.5 for August, signaling modest expansion after July’s contraction of 49.5. Meanwhile, official government data released Sunday showed the country’s manufacturing PMI at 49.4 in August, barely higher than July’s 49.3. Markets also kept an eye on India-China relations following the Shanghai Cooperation Organization meeting, where leaders of both countries emphasized that they are “development partners” rather than rivals. In the U.S., attention turned to a federal appeals court ruling that deemed most of former President Donald Trump’s "reciprocal tariffs” illegal. The Court of Appeals for the Federal Circuit concluded Trump exceeded his authority when imposing tariffs globally under his April 2 “liberation day” declaration. On Wall Street, stocks retreated Friday as fresh inflation data suggested price pressures remain a concern heading into September. The S&P 500 slipped 0.64% to 6,460.26, though it still notched its fourth consecutive monthly gain. The Nasdaq Composite fell 1.15% to 21,455.55, while the Dow Jones Industrial Average declined 92.02 points, or 0.20%, to close at 45,544.88. U.S. markets will remain shut on Monday in observance of Labor Day.