Indian equity benchmarks witnessed sharp fall on Monday tracking a sharp decline in global equities and a fresh spike in crude oil prices, amid flaring tensions in West Asia. Also, exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,776.25 crore on Friday.
Some of the important factors in trade:
Projected weak monsoon could weigh on rural demand, private consumption: The Reserve Bank of India (RBI) Governor Sanjay Malhotra has cautioned that the projected shortfall in south-west monsoon rainfall could weigh on rural demand and private consumption.
Retaining repo rate is balanced, prudent decision amid global uncertainty: Welcoming the monetary policy announcement, the Federation of Indian Chambers of Commerce and Industry (FICCI) President Anant Goenka has said that retaining the repo rate at 5.25% and maintaining a neutral stance is a balanced and prudent decision taken by the RBI given the heightened global uncertainty.
India, US near completion of interim trade deal; first phase likely by mid-July: With an aim to deepen economic ties and strengthen bilateral trade, Commerce and Industry Minister Piyush Goyal has stated that India and the United States (US) are rapidly moving towards resolving all outstanding issues in the proposed interim trade agreement.
Auto stocks remain in watch: Federation of Automobile Dealers Associations (FADA) has said that India’s total automobile retail sales surged 9.55% year-on-year to a record 25,31,067 units in May 2026 as compared with 23,10,451 units in the corresponding month last year.
Global front: European markets were trading mostly in red, while Asian markets settled lower on Monday as Middle East worries persisted and robust U.S. jobs data led traders to ramp up bets on a Federal Reserve rate hike this year.
Finally, the BSE Sensex fell 719.08 points or 0.97% to 73,524.26 and the CNX Nifty was down by 243.70 points or 1.04% to 23,123.00.
The BSE Sensex touched high and low of 73,934.35 and 73,318.94, respectively. There were 7 stocks advancing against 23 stocks declining on the index.
The top losing sectoral indices on the BSE were Realty down by 2.57%, Metal down by 2.43%, Telecom down by 2.28%, Basic Materials down by 2.09% and Industrials down by 2.06%, while there was no gaining sectoral indices on the BSE.
The top gainers on the Sensex were Power Grid Corporation up by 1.79%, Tech Mahindra up by 1.35%, Bharat Electronics up by 1.20%, Bharti Airtel up by 0.93% and SBI up by 0.42%. On the flip side, Eternal down by 3.24%, Interglobe Aviation down by 2.61%, Mahindra & Mahindra down by 2.51%, TCS down by 2.13% and Reliance Industries down by 2.13% were the top losers.
Meanwhile, with an aim to deepen economic ties and strengthen bilateral trade, Commerce and Industry Minister Piyush Goyal has stated that India and the United States (US) are rapidly moving towards resolving all outstanding issues in the proposed interim trade agreement. According to him, both countries are likely to finalize and implement the ‘very, very vibrant’ first phase of the pact by mid-July 2026.
Goyal noted that a US team visited New Delhi from June 2 to 4 to advance negotiations and finalize the agreement. The delegation held extensive discussions with the Indian team, and the minister also met with its members. He said ‘We are fast moving towards closing all the open ends’. Emphasizing the significance of the proposed arrangement, he added that the agreement represents only the first tranche of a broader bilateral trade pact and would provide India with preferential market access compared to its competitors.
He further stated that a high-level US delegation is likely to visit India later this month (June 2026) to continue discussions. The US remained one of India’s largest trading partners during FY2025-26. India’s exports to the US rose marginally by 0.92% to $87.3 billion during FY2025-26, while imports from the US increased by 15.95% to $52.9 billion, reflecting continued growth in bilateral trade.
CNX Nifty touched high and low of 23,267.30 and 23,070.15, respectively. There were 9 stocks advancing against 41 stocks declining on the index.
The top gainers on Nifty were Max Healthcare up by 2.95%, Power Grid Corporation up by 1.52%, Bharti Airtel up by 1.22%, Bharat Electronics up by 1.00% and Nestle up by 0.99%. On the flip side, Wipro down by 8.45%, JIO Financial Services down by 3.67%, Eternal down by 3.65%, Hindalco down by 3.62% and Shriram Finance down by 3.14% were the top losers.
European markets were trading mostly in red; France’s CAC fell 32.24 points or 0.39% to 8,186.00 and Germany’s DAX lost 220.05 points or 0.9% to 24,539.00, while UK’s FTSE 100 increased 1.07 points or 0.01% to 10,369.12.
Asian markets settled lower on Monday tracking a global tech selloff, higher US bond yields and as a surprisingly strong US jobs report added to fears that the Federal Reserve will keep interest rates higher for longer. Market sentiments were also dampened by rising Brent Crude prices after Iran and Israel exchanged missile strikes casting doubt on the future of a fragile ceasefire in the Middle East. Japanese shares slumped tracking Wall Street’s fall last Friday and after data showed the Japanese economy grew at a slower pace in the January to March quarter than had been initially estimated. The Kospi index crashed over 8%, tripping a circuit breaker that paused all trading for 20 minutes. This event was triggered for the nineth time in the index's history, marking the third time it has happened this year.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,959.34 | -68.40 | -1.70 |
Hang Seng | 24,657.06 | -304.89 | -1.22 |
Jakarta Composite | 5,342.14 | -252.63 | -4.73 |
KLSE Composite | 1,679.52 | -13.91 | -0.82 |
Nikkei 225 | 64,024.60 | -2,563.52 | -3.85 |
Straits Times | 4,963.67 | -86.29 | -1.71 |
KOSPI Composite | 7,484.41 | -676.18 | -8.29 |
Taiwan Weighted | 43,502.78 | -1,568.16 | -3.48 |
