Indian equity benchmarks erased initial losses and were trading in green in morning deals, led by gains in Metal, Basic Materials and Telecom stocks. Traders took support with Union Minister Piyush Goyal’s statement that the commerce ministry is preparing granular plans to boost the utilisation of free trade agreements (FTAs) by Indian industry, including sending 500 delegations abroad, training 1,000 people, and engaging with 1,600 industry chambers. However, gains remain capped as some concern came with data showing that retail inflation rate based on All India Consumer Price Index (CPI) with base year 2024 rose marginally to 3.48% (Provisional) in the month of April 2026 as compared to 3.40% (Final) in the preceding month, mainly due to an uptick in food prices. Traders took a note of Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that the current West Asia crisis is effectively a live stress test for India's balance of payments, with direct consequences for inflation, the current account, and the exchange rate. On the global front, Asian markets were trading mostly in green even as hotter-than-expected US inflation data reinforced expectations for tighter US Fed policy.
The BSE Sensex is currently trading at 74679.65, up by 120.41 points or 0.16% after trading in a range of 74134.48 and 74981.34. There were 13 stocks advancing against 17 stocks declining on the index.
The top gaining sectoral indices on the BSE were Metal up by 2.61%, Basic Materials up by 1.62%, Telecom up by 1.62%, Consumer Durables up by 1.40% and Capital Goods up by 1.16%, while Utilities down by 0.82%, Power down by 0.52%, IT down by 0.27% and Auto down by 0.10% were the top losing indices on BSE.
The top gainers on the Sensex were Asian Paints up by 4.26%, Tata Steel up by 2.69%, Bharat Electronics up by 2.30%, Adani Ports &SEZ up by 2.15% and Kotak Mahindra Bank up by 1.53%. On the flip side, Power Grid Corporation down by 2.37%, NTPC down by 1.45%, Maruti Suzuki down by 0.74%, Mahindra & Mahindra down by 0.74% and Titan Company down by 0.59% were the top losers.
Meanwhile, Chief Economic Advisor (CEA) V Anantha Nageswaran has said the current West Asia crisis is effectively a live stress test for India's balance of payments, with direct consequences for inflation, the current account, and the exchange rate. Nevertheless, India's fiscal consolidation path, infrastructure investment, and reforms provide it a base to navigate the current environment of conflict.
Nageswaran said that India imports 87% of its crude oil, of which 46% is transiting through or near the Strait of Hormuz, where the seven-day moving average of tanker traffic has dropped to just five vessels. 60% of our LPG is imported, over 90% via the Gulf. 38%of annual remittances originate in Gulf countries. He stated ‘The West Asia crisis, therefore, is not a foreign policy concern that occasionally bleeds into economic planning. It is a live balance of payments stress test, with direct consequences for inflation, the current account, and the exchange rate. Managing the current account credibly, financing it, and preventing further currency depreciation are the central macroeconomic imperatives of FY27’.
The Strait of Hormuz has been effectively closed for the past two months following the US and Israel attacked Iran, pushing global crude prices higher by over 60%. India's import bill is expected to balloon since it imports about 90% of its domestic crude oil needs, thereby denting India's foreign exchange reserves. The West Asia crisis is expected to expand India’s current account deficit (CAD) and lead to a weaker balance of payments (BoP).
The CNX Nifty is currently trading at 23452.45, up by 72.90 points or 0.31% after trading in a range of 23262.55 and 23503.80. There were 30 stocks advancing against 20 stocks declining on the index.
The top gainers on Nifty were Asian Paints up by 4.46%, Hindalco up by 3.38%, Tata Steel up by 2.62%, Bharat Electronics up by 2.35% and Cipla up by 2.28%. On the flip side, Power Grid Corp down by 2.33%, Eicher Motors down by 1.84%, NTPC down by 1.44%, Bajaj Auto down by 0.93% and Maruti Suzuki down by 0.67% were the top losers.
Asian markets were trading mostly in green; Nikkei 225 surged 552.43 points or 0.88% to 63,295.00, Shanghai Composite strengthened 15.71 points or 0.37% to 4,230.20, KOSPI increased 167.99 points or 2.2% to 7,811.14, Hang Seng advanced 59.09 points or 0.22% to 26,407.00 and Straits Times rose 43.13 points or 0.87% to 4,989.13.
On the flip side, Taiwan Weighted lost 564.61 points or 1.35% to 41,333.71 and Jakarta Composite plunged 124.36 points or 1.81% to 6,734.54.
