Indian equity benchmarks made a cautious start on Wednesday as elevated crude oil prices and uncertainty surrounding the West Asia war continue to cloud investors' confidence. Soon, Sensex and Nifty extended their losses and were trading with cut of around half a percent each in early deals amid selling in Utilities, Power and Auto stocks. Traders remained concerned as the government data showed that India’s retail inflation rose slightly to 3.48% in April, mainly due to higher prices of gold and silver jewellery as well as some kitchen items. Besides, inflation in the food basket was at 4.20% in April, up from 3.87% in the preceding month. On the sectoral front, Jewellery stocks were in focus as the government raised import tariffs on gold and silver to 15% from 6%. The decision is a part of efforts to curb overseas purchases of the metals and ease pressure on the country's foreign exchange reserves.
On the global front, Asian markets were trading mostly higher. Market participants remained focused on the scheduled meeting between U.S. President Donald Trump and Chinese President Xi Jinping later in the day, where discussions around trade relations are expected to take center stage. South Korean shares outperformed, with the KOSPI rebounding from Tuesday’s losses on renewed strength in chipmaking stocks.
The BSE Sensex is currently trading at 74175.98, down by 383.26 points or 0.51% after trading in a range of 74134.48 and 74981.34. There were 6 stocks advancing against 24 stocks declining on the index.
The few gaining sectoral indices on the BSE were Metal up by 0.81%, Consumer Durables up by 0.67%, Basic Materials up by 0.45% and Telecom up by 0.10%, while Utilities down by 1.44%, Power down by 1.19%, Auto down by 0.94%, IT down by 0.77% and Realty down by 0.65% were the top losing indices on BSE.
The top gainers on the Sensex were Asian Paints up by 2.77%, Tata Steel up by 0.99%, Adani Ports & SEZ up by 0.91%, Kotak Mahindra Bank up by 0.66% and ITC up by 0.18%. On the flip side, Power Grid down by 2.12%, NTPC down by 1.45%, Mahindra & Mahindra down by 1.33%, Interglobe Aviation down by 1.30% and Bajaj Finance down by 1.27% were the top losers.
Meanwhile, with an aim to strengthen India’s global economic partnerships, Commerce and Industry Minister Piyush Goyal has said that the India and Oman free trade agreement (FTA) is likely to come into force from June 1, 2026. The pact was signed in December 2025. The Omani delegation is on India visit to discuss ways to boost trade and investments. The agreement will provide duty-free access to 98% of India's exports, including textiles, agri, and leather goods in Oman. On the other hand, India will reduce tariffs on Omanese products such as dates, marbles and petrochemical items. Meanwhile, India-Oman bilateral trade stood at $10.61 billion in FY 2024-25, reflecting the expanding scale of the both economies.
Further, about his meeting with the Chilean foreign minister, Goyal said there are challenges given the different size of the economies and different scale of opportunities that both countries offer to each other. He noted that they are trying to bridge that gap through innovative solutions. He said ‘If we get a good deal around critical minerals and other important mining concessions then maybe there is some very good possibility that we should be able to finalise an FTA with Chile’.
India and Chile implemented a preferential trade agreement (PTA) in 2006 and are now negotiating to widen its scope for a Comprehensive Economic Partnership Agreement (CEPA). The CEPA with Chile aims to build upon the existing PTA and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs (micro, small, and medium enterprises), and critical minerals. The pact could help India access critical minerals, which are key inputs for electronics, auto, and solar sectors. The bilateral trade between India and Chile is modest. In 2024-25, India's exports to Chile declined 2.46% to just $1.15 billion. However, imports grew 72% to $2.60 billion.
The CNX Nifty is currently trading at 23276.50, down by 103.05 points or 0.44% after trading in a range of 23262.55 and 23503.80. There were 15 stocks advancing against 35 stocks declining on the index.
The top gainers on Nifty were Asian Paints up by 3.07%, Tata Steel up by 0.98%, Adani Ports & SEZ up by 0.91%, Hindalco up by 0.89% and Grasim Industries up by 0.79%. On the flip side, Eicher Motors down by 2.81%, Power Grid down by 2.12%, Shriram Finance down by 1.58%, NTPC down by 1.41% and Max Healthcare down by 1.33% were the top losers.
Asian markets were trading mostly in green; Nikkei 225 surged 357.43 points or 0.57% to 63,100.00, KOSPI rose 152.13 points or 1.95% to 7,795.28, Hang Seng advanced 84.09 points or 0.32% to 26,432.00, Straits Times strengthened 43.76 points or 0.88% to 4,989.76 and Shanghai Composite added 3.73 points or 0.09% to 4,218.22. On the other hand, Taiwan Weighted lost 553.94 points or 1.34% to 41,344.38 and Jakarta Composite was down by 115.94 points or 1.69% to 6,742.96.
