Indian equity benchmarks made flat-to-negative start on Wednesday as investors remained cautious amid uncertainty over the U.S.-Iran peace deal. Sensex and Nifty were trading in red with marginal losses in early deals. Sentiments remained downbeat after Foreign Institutional Investors (FIIs) turned net sellers on May 26, 2026, with a net outflow of Rs 2,407.87 crore. Some cautiousness also came as Krishna Kant Pathak, joint secretary in the Department of Fertilizers, said that India's fertiliser subsidy bill could cross Rs 3 lakh crore in the current fiscal if the disruptions resulting from the West Asia crisis prolong. However, downside remained capped as traders took note of Commerce and Industry Minister Piyush Goyal’s statement that officials of India and Canada are negotiating the proposed free trade agreement with full sincerity, and the talks could even be concluded before the end of this year
On the global front, Asian markets were trading mostly in green with Japan and South Korea reaching fresh highs after a tech-led rally on Wall Street overnight, along with the optimism that Iran and the US would soon sign a peace deal to end the months-long war and reopen the Strait of Hormuz.
The BSE Sensex is currently trading at 75877.04, down by 132.66 points or 0.17% after trading in a range of 75797.01 and 76137.53. There were 15 stocks advancing against 15 stocks declining on the index.
The top gaining sectoral indices on the BSE were Power up by 1.81%, Metal up by 1.57%, Capital Goods up by 1.51%, Utilities up by 1.41% and Realty up by 1.22%, while Energy down by 0.91%, Oil & Gas down by 0.66%, Bankex down by 0.31%, IT down by 0.28% and TECK down by 0.21% were the top losing indices on BSE.
The top gainers on the Sensex were Eternal up by 2.00%, NTPC up by 1.51%, Power Grid up by 1.20%, Tata Steel up by 0.95% and Asian Paints up by 0.88%. On the flip side, ITC down by 2.85%, HDFC Bank down by 1.99%, Infosys down by 0.72%, Bharat Electronics down by 0.68% and Bajaj Finance down by 0.56% were the top losers.
Meanwhile, expressing optimism over India’s free trade agreement (FTA) with Canada, Commerce and Industry Minister Piyush Goyal has said that officials of both the countries are negotiating the proposed FTA with full sincerity, and the talks could even be concluded before the end of this year. He said that immense opportunities are there for businesses of both countries to enhance collaborations in areas such as innovation, seafood, education, finance, insurance, biotechnology and pharmaceuticals.
The minister said that both the sides are working on to finalise a very comprehensive economic partnership agreement (CEPA) before the end of the year. He added that Canadian Prime Minister Mark Carney has suggested concluding the negotiations by the end of November, that is, before the G20 Summit. The 2026 G20 Summit is scheduled to be held on December 14-15, 2026, in Miami, United States, under the presidency of the US.
Goyal suggested that India's digital public infrastructure, like UPI, can help in reducing transaction costs in Canada. Critical minerals from Canada can help India become a manufacturing hub for sectors like electric vehicles and electronic goods. Both sides can explore dual-degree in the education sector and, in the future, consider campuses of eminent Indian institutions in Canada while also inviting Canadian institutions to teach Indian students in India.
He noted that the Canadian trade minister will visit India in November this year. The two countries have also set a target to increase the bilateral trade from $17 billion at present to $50 billion by 2030. Meanwhile, two rounds of negotiations have been completed. The third round is going on in Ottawa from May 25 to 29. Both sides in November 2025 announced restarting talks for the pact. Key exports from India to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals, among others. Imports include pulses, pearls and semi-precious stones, coal, fertiliser, paper and petroleum crude.
The CNX Nifty is currently trading at 23883.90, down by 29.80 points or 0.12% after trading in a range of 23869.65 and 23950.15. There were 25 stocks advancing against 25 stocks declining on the index.
The top gainers on Nifty were Hindalco up by 3.78%, Eternal up by 2.02%, NTPC up by 1.41%, Power Grid up by 1.28% and Tata Steel up by 0.96%. On the flip side, Coal India down by 3.92%, ONGC down by 3.04%, ITC down by 2.83%, HDFC Bank down by 1.98% and HDFC Life Insurance down by 0.84% were the top losers.
Asian markets were trading mostly higher; Taiwan Weighted jumped 1125.03 points or 2.52% to 44,650.40, Nikkei 225 surged 538.91 points or 0.83% to 65,535.00 and KOSPI increased 350.90 points or 4.18% to 8,398.41. On the other hand, Hang Seng declined 227.45 points or 0.9% to 25,372.00 and Shanghai Composite was down by 46.14 points or 1.13% to 4,099.23.
