Positive trade persists in Indian markets

A positive trade persisted in Indian equity markets during early afternoon deals, with both Sensex and Nifty holding marginal gains, aided by buying at Metal and Basic Materials counters, despite mixed cues from other Asian markets. Traders were getting some relief amid a private report stating that the government is likely to project a conservative nominal GDP growth estimate of around 9.5 percent for the 2025-26 budget, factoring in expectations of slowing inflation and steady economic activity. The fresh estimate follows recent data indicating slower growth, with real GDP expanding by just 5.4 percent in the second quarter of FY25. However, gains were limited, as Union finance minister Nirmala Sitharaman said that inflation is a big challenge for the world and the major reason for that is ‘disruption’.

On the global front, Asian markets were trading mixed, as producer prices in Japan were up 3.7 percent on year in November. That exceeded expectations for an increase of 3.4 percent and was up from the upwardly revised 3.6 percent gain in October (originally 3.4 percent). On a monthly basis, producer prices were up 0.3 percent - unchanged from the October reading following an upward revision from 0.2 percent and exceeding expectations for 0.2 percent.

On the sectoral front, solar industry stocks were in watch, as Ministry of New and Renewable Energy (MNRE) has unveiled a significant amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019 which will have far-reaching implications for India’s solar power sector and its clean energy transition. This amendment introduces the long-awaited List-II for solar PV cells under the ALMM framework, marking a major step towards boosting domestic manufacturing and fostering self-reliance in India’s renewable energy industry.

The BSE Sensex is currently trading at 81605.63, up by 95.58 points or 0.12% after trading in a range of 81383.42 and 81742.37. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged by 0.18%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Metal up by 0.95%, Basic Materials up by 0.72%, Auto up by 0.65%, Consumer Durables up by 0.47% and FMCG up by 0.47%, while Utilities down by 0.27%, Power down by 0.22%, Bankex down by 0.10% and Telecom down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.66%, Nestle up by 1.64%, Ultratech Cement up by 1.40%, Asian Paints up by 1.39% and Tata Steel up by 1.06%. On the flip side, Adani Ports & SEZ down by 1.07%, HCL Tech. down by 0.68%, SBI down by 0.41%, Tech Mahindra down by 0.37% and TCS down by 0.31% were the top losers.

Meanwhile, set to take effect from June 1, 2026, Ministry of New and Renewable Energy (MNRE) has unveiled a significant amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019 which will have far-reaching implications for India’s solar power sector and its clean energy transition. This amendment introduces the long-awaited List-II for solar PV cells under the ALMM framework, marking a major step towards boosting domestic manufacturing and fostering self-reliance in India’s renewable energy industry. The introduction of List-II is a response to the country’s rapidly growing solar manufacturing capabilities. Until now, the absence of List-II was due to a limited domestic supply of solar cells. However, with substantial growth in India’s solar cell production capacity anticipated over the next year, this amendment is poised to change the dynamics of the industry. 

From June 1, 2026, all solar PV modules used in projects - including government-backed schemes, net-metering projects, and open access renewable energy initiatives - will be required to source their solar cells from ALMM List-II, ensuring quality and reliability in solar PV cells used in India’s energy infrastructure. For projects that have already been bid out but whose last date of bid submission is before the issuance of this order, an exemption will apply, allowing them to proceed without the requirement to use solar PV cells from List-II, even if their commissioning date is post June 1, 2026. However, for all future bids, the requirement to source both solar PV modules and cells from the respective ALMM lists will be mandatory, marking a decisive shift towards quality assurance and sustainability in India’s solar power sector.

This policy enhancement is expected to have profound economic and environmental benefits. By mandating the use of solar PV cells which will be included in the ALMM List-II following a rigorous procedure to verify the quality and reliability, the government aims to foster a robust domestic solar PV supply chain, reduce the carbon footprint associated with solar module imports, and bolster India’s energy security. This move aligns with India’s broader goal of achieving 500 GW of non-fossil fuel-based power capacity by 2030 and making substantial strides in its commitment to clean energy. The amendment will not only strengthen India’s position as a global leader in renewable energy but will also accelerate the growth of India’s solar manufacturing sector.

The CNX Nifty is currently trading at 24653.40, up by 43.35 points or 0.18% after trading in a range of 24583.85 and 24691.75. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Britannia up by 1.96%, Shriram Finance up by 1.71%, Bajaj Finance up by 1.67%, Nestle up by 1.66% and Asian Paints up by 1.41%. On the flip side, Adani Ports & SEZ down by 1.09%, HCL Tech. down by 0.76%, Adani Enterprises down by 0.44%, NTPC down by 0.41% and SBI down by 0.39% were the top losers.

Asian markets were trading mixed; Jakarta Composite gained 45.73 points or 0.61% to 7,499.02, Shanghai Composite strengthened 6.7 points or 0.2% to 3,429.36, KOSPI increased 24.67 points or 1.01% to 2,442.51 and Nikkei 225 surged 4.65 points or 0.01% to 39,372.23, while Hang Seng declined 141.08 points or 0.69% to 20,170.20, Straits Times fell 19.18 points or 0.5% to 3,794.37 and Taiwan Weighted lost 221.45 points or 0.97% to 22,903.63.