Key gauges end flat amid West Asia tensions

Indian equity benchmarks retreated from their day's high and ended flat on Wednesday as renewed hostilities between the United States and Iran unsettled investor sentiment. Weak trends in global markets and relentless foreign fund outflows also made investors cautious. According to exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,566.03 crore on Tuesday. 

Some of the important factors in trade: 

India well placed to serve global healthcare needs: Highlighting the pharmaceutical sector’s growing global influence, Union Minister of Commerce and Industry Piyush Goyal has said that India is well positioned to serve the world as an innovator, manufacturer, reliable supplier of affordable medicines, partner in advanced healthcare technologies and destination for contract manufacturing. 

India's total exports reach to all-time high of $863 billion in FY26: Nitin Kumar Yadav, Additional Secretary at the Union Ministry of Commerce, has said that India’s total exports reached an all-time high of $863 billion in FY 2025-26, up from $468 billion in FY 2014-15, reflecting a compound annual growth rate (CAGR) of 5.7 per cent. 

RBI’s recent measures likely to bring in $55-65 billion of inflows in FY27: SBI research in its latest Ecowrap report has said that the Reserve Bank of India’s (RBI) recent measures to attract foreign capital are expected to bring in $55-65 billion of inflows in FY27, helping stabilise the rupee and turning the country's balance of payments (BoP) into a surplus. 

GDP growth momentum intact, no need for additional borrowing so far: The report has said that the Indian economy is facing headwinds from external sectors with rising fuel and fertiliser import bills due to West Asia crisis, but GDP growth momentum remains intact with domestic consumption holding up.

Global front: European markets were trading lower amid concerns about Middle East tensions following the U.S. and Iran launching strikes against each other. Asian markets ended mostly lower as Middle East tension flared again, and regional inflation data underscored persistent price pressures. 

Finally, the BSE Sensex rose 64.42 points or 0.09% to 73,983.18 and the CNX Nifty was down by 27.15 points or 0.12% to 23,214.95.

The BSE Sensex touched high and low of 74,613.01 and 73,897.57, respectively. There were 12 stocks advancing against 18 stocks declining on the index. 

The lone gaining sectoral index on the BSE was FMCG up by 0.84%, while Telecom down by 1.98%, Metal down by 1.87%, Oil & Gas down by 1.77%, Realty down by 1.76% and Energy down by 1.71% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.70%, Hindustan Unilever up by 1.70%, Kotak Mahindra Bank up by 1.64%, ICICI Bank up by 1.40% and ITC up by 1.30%. On the flip side, Infosys down by 3.00%, Eternal down by 2.46%, Tata Steel down by 1.99%, Bajaj Finserv down by 1.67% and Titan Company down by 1.48% were the top losers.

Meanwhile, expressing optimism over India’s exports growth, Nitin Kumar Yadav, Additional Secretary at the Union Ministry of Commerce, has said that India’s total exports reached an all-time high of $863 billion in FY 2025-26, up from $468 billion in FY 2014-15, reflecting a compound annual growth rate (CAGR) of 5.7 per cent. During this period, merchandise exports rose from $310 billion to $442 billion, while services exports surged from $158 billion to $421 billion, registering a CAGR of 9.3 per cent. Non-petroleum exports also set a new record at $387.9 billion, underscoring the depth and diversity of India’s export base.

Highlighting India’s achievements in forging trade agreements, Yadav noted that the country has concluded several landmark deals that strengthen its position in global value chains. The India-EFTA Trade and Economic Partnership Agreement (TEPA, 2025), backed by an FDI commitment of $100 billion, provides duty-free access for around 98 per cent of India’s exports.

He added that the India-EU Free Trade Agreement (FTA, 2026), covering 27 high-income economies, is likely to support exports worth Rs 3.2 lakh crore, with tariff concessions on 99 per cent of bilateral trade by value. Additionally, the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA, 2021) and the India-UAE CEPA together provide zero-duty access on 99 per cent of India’s exports to these markets, with bilateral trade with the UAE already exceeding $80 billion.

CNX Nifty touched high and low of 23,425.35 and 23,184.60, respectively. There were 16 stocks advancing against 34 stocks declining on the index. 

The top gainers on Nifty were Nestle up by 1.95%, Hindustan Unilever up by 1.85%, Axis Bank up by 1.67%, Kotak Mahindra Bank up by 1.65% and ICICI Bank up by 1.41%. On the flip side, Hindalco down by 3.41%, Coal India down by 3.34%, ONGC down by 2.74%, Eternal down by 2.36% and SBI Life Insurance Company down by 2.32% were the top losers. 

European markets were trading lower; France’s CAC fell 59.83 points or 0.73% to 8,143.60 and Germany’s DAX lost 354.06 points or 1.45% to 24,079.00, while UK’s FTSE 100 decreased 60.69 points or 0.59% to 10,166.64.

Asian markets ended mostly lower on Wednesday, led by South Korea's Kospi index, following mixed cues from Wall Street overnight as a rebound in technology shares tied to the artificial intelligence boom ran out of steam. Market sentiment weakened further as Middle East tensions flared again after the downing of a US helicopter gunship near the Strait of Hormuz, casting doubt on the durability of a fragile ceasefire and the prospects for a broader peace agreement. Meanwhile, traders awaited cues from key US CPI data that might show inflation at a three-year high in May. Chinese shares fell after data showed China's consumer price inflation unexpectedly stalled in May, while factory prices rose at the fastest pace in almost four years amid higher energy and raw material costs. Japanese markets tumbled after data showed Japan's producer price index rose 6.3% in May from a year earlier, the fastest pace in more than three years. Investors were heavily pricing in a rate hike from the Bank of Japan at the June 15-16 policy meeting.