Key indices end sharply lower on Thursday

Indian equity markets ended sharply lower on Thursday in tandem with weak global market trends amid growing tensions in the Middle East. Fresh foreign fund outflows also dented investors' sentiment. The markets started on a positive note, but profit-taking in heavyweight stocks across sectors gradually dragged the indices lower, with the decline accelerating in the second half.  

Some of the important factors in today’s trade:

Proposed national e-commerce, retail trade policies under discussions: Commerce and Industry Minister Piyush Goyal has said that the proposed national e-commerce and retail trade policies are under discussions as both are linked to each other.

Year-end timeline set for completion of India-EU FTA seems ‘feasible’: Expressing an optimism over India-EU free trade agreement, External Affairs Minister S Jaishankar has said that India places a high priority to its relations with the European Union, the centrepiece of which is the Free Trade Agreement negotiations that are making very good progress.

Swedish Minister says India, EU FTA should resolve tariffs, non-tariff barriers: Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa said that the EU and India should work towards a free trade agreement that addresses tariff and non-tariff barriers as both regions are currently a bit over-regulated.

Rising crude oil prices: Crude oil prices rose sharply amid escalating US-Iran tensions, increasing concerns for India’s trade deficit and inflation outlook, which remains sensitive to energy imports.

Weak global cues: European markets were trading lower as investors reacted to Sino-U.S. trade deal uncertainty and escalating U.S.-Iran tensions. Asian markets exhibited mixed trend on Thursday, as trade uncertainties and heightened geopolitical risks overshadowed hopes for more Federal Reserve rate cuts this year. 

Finally, the BSE Sensex fell 823.16 points or 1.00% to 81,691.98 and the CNX Nifty was down by 253.20 points or 1.01% to 24,888.20.  

The BSE Sensex touched high and low of 82,661.04 and 81,523.16 respectively. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 1.52%, while Small cap index was down by 1.38%.

The top losing sectoral indices on the BSE were Power down by 2.19%, Utilities down by 2.18%, Oil & Gas down by 2.10%, Realty down by 2.07% and Consumer Durables down by 2.02%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Finserv up by 0.73%, Asian Paints up by 0.43% and Tech Mahindra up by 0.36%. On the flip side, Tata Motors down by 2.89%, Trent down by 2.63%, Titan Company down by 2.52%, Eternal down by 2.28% and Power Grid Corporation down by 2.25% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the world trade is facing severe geo-political challenges, but India has consistently emerged as a winner in such times, and the country's exports of goods and services will certainly cross $825 billion in 2025-26 (FY26).

Goyal stated despite global economic uncertainties due to the Russia-Ukraine conflict, Israel-Hamas war and the Red Sea crisis, the country's overall exports touched an all-time high of $825 billion in 2024-25 against $778 billion in 2023-24. he added as per estimates of certain multi-lateral bodies, there would be a contraction in global trade.

Free trade agreements with countries such as the UAE, Australia and European Free Trade Association (EFTA) will help boost exports in the coming months. The India-EFTA trade agreement is expected to come into force from October 1 this year.

The CNX Nifty traded in a range of 25,196.20 and 24,825.90. There were 7 stocks advancing against 43 stocks declining on the index.   

The top gainers on Nifty were Apollo Hospital up by 0.96%, Asian Paints up by 0.73%, Bajaj Finserv up by 0.46%, Dr. Reddy's Lab up by 0.38% and Tech Mahindra up by 0.37%. On the flip side, Tata Motors down by 2.98%, Titan Company down by 2.62%, Trent down by 2.62%, Shriram Finance down by 2.57% and Coal India down by 2.51% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 16.11 points or 0.18% to 8,848.24, France’s CAC fell 63.91 points or 0.83% to 7,711.99 and Germany’s DAX lost 293.3 points or 1.24% to 23,655.60.

Asian markets exhibited mixed trend on Thursday, after Wall Street's overnight fall as a new US-China trade deal provided few concrete details. Meanwhile, heightened tensions in the Middle East also kept investors on edge. US President Donald Trump said that US personnel were being moved out of the Middle East due to heightened security risks in the region. Investors were awaiting US producer price index data for May for direction. Japanese shares declined as a firmer yen weighed on export-related shares. Seoul shares gained, led by big gains in the defense and energy sectors.