Benchmarks likely to make gap-down opening amid Iran-US tension

07 Apr 2026 Evaluate

Indian equity markets are likely to make gap-down opening on Tuesday, ahead of the deadline set by U.S. President Donald Trump to bomb Iranian power plants if Iran does not open the Strait of Hormuz. Additionally, sentiment may remain subdued amid continued outflows by foreign institutional investors (FIIs). On April 6, 2026, FIIs were net sellers, offloading equities worth Rs 8,167.17 crore.

Some of the key factors to be watched:

India’s GDP growth likely at 6.7% in FY27 despite geopolitical tensions: CareEdge Ratings in its report said that India’s economic growth is expected to remain resilient in the face of rising global uncertainties, with GDP projected to expand at 6.7 per cent in FY27.

RBI keeps investment limit for FPIs in G-secs unchanged for FY27: The Reserve Bank said that the investment limit for foreign portfolio investors in government securities through the general route will remain unchanged at 6 per cent of the outstanding stocks of securities for 2026-27.

India has enough fiscal space to push capex, support sectors impacted by West Asia crisis: Finance Minister Nirmala Sitharaman said that fiscal prudence has given the government enough room to push capex and support sectors impacted by the West Asia crisis.

Govt relaxes energy efficiency norms for 6 months till January 1: The government has extended the timeline for implementing strict energy efficiency norms, or the star labelling programme, for counter-top induction hobs by six months to January 1, 2027, to boost electric cooking in the country.

Plastics industry’s stocks will be in focus: The Indian Plastics Federation (IPF) has urged the Centre to declare plastics as an essential commodity amid sharp disruptions in polymer supply and prices triggered by the ongoing crisis in West Asia.

On the global front: The US markets ended higher on Monday despite uncertainty about the U.S. war with Iran following President Donald Trump's latest threats. Asian markets are trading mostly in green on Tuesday tracking positive cues from US markets overnight.

Back home, Indian equity benchmarks erased all of their initial losses and staged a sharp rebound to end over a percent higher on Monday following a correction in crude oil prices amid reports of ceasefire efforts in the ongoing West Asia war. Besides, intense buying in Consumer Durables, Realty and Banking stocks also supported investor sentiments. Finally, the BSE Sensex rose 787.30 points or 1.07% to 74,106.85 and the CNX Nifty was up by 255.15 points or 1.12% to 22,968.25.

Some of the important factors in trade:

March 2026 sees cooling in India’s services sector growth; PMI at 57.5: India’s services sector witnessed slower expansion in the month of March 2026, rising at the softest pace in 14 months. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 57.5 in March from 58.1 in February.

India, UK FTA may come into force in next 30 to 45 days: Commerce and Industry Minister Piyush Goyal said that the India-UK free trade agreement (FTA), signed in July last year, is likely to come into force in the next 30-45 days.

Trump’s 100% tariffs unlikely to impact Indian pharma players: After US president Donald Trump imposed 100% ad valorem duty rate on the import of certain patented pharmaceuticals and associated pharmaceutical ingredients, on April 2, the think tank Global Trade Research Initiative (GTRI) said that the decision is unlikely to significantly impact India, given its dominance in low-cost generic drug exports to the US.

Benchmarks likely to make gap-down opening amid Iran-US tension

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