Post Session: Quick Review

Indian equity benchmarks ended in negative terrains on Thursday amid escalating tensions between the US and Iran. After making a gap-down opening, the indices quickly pared most of their losses and traded near the neutral line supported by gains in healthcare, pharma, and banking stocks. However, renewed selling pressure in the final hour of trade dragged the markets to end marginally lower.

Some of the important factors in trade:

India’s GDP growth likely to slow to 6.6% in FY27: Traders remained cautious as BMI, a Fitch group company, stated that India's GDP is likely to grow at 6.6 per cent in the current fiscal as compared to 7.7 per cent in FY26, on weaker investments and consumption growth and trade shocks from the West Asia crisis.

FIIs extend selling streak: Sentiments remained downbeat as Foreign Institutional Investors (FIIs) continued to pull out fund from Indian markets. FIIs were the net seller on Wednesday’s session, offloading securities worth Rs 2,124.98 crore. 

India, Bulgaria discuss expanding ties in trade, defence, semiconductors, AI: Traders overlooked report that External Affairs Minister S. Jaishankar held talks with Bulgaria's top leadership and discussed ways to expand bilateral cooperation in trade, investment, defence, semiconductors, and artificial intelligence.

On the global front: European markets were trading in green ahead to the European Central Bank's monetary policy announcement, due later in the day.  Asian markets closed mostly lower, following the broadly negative cues from Wall Street overnight, as traders remained cautions amid concerns about the Middle East conflict.

The BSE Sensex ended at 73832.55, down by 150.63 points or 0.20% after trading in a range of 73518.75 and 74394.34. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The only gaining sectoral indices on the BSE were Healthcare up by 0.25% and Bankex up by 0.16%, while IT down by 1.78%, Industrials down by 1.40%, Capital Goods down by 1.19%, Utilities down by 1.17% and Power down by 1.07% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 1.67%, ICICI Bank up by 1.64%, Kotak Mahindra Bank up by 1.11%, Sun Pharma up by 0.65% and Bharti Airtel up by 0.60%. On the flip side, Infosys down by 2.71%, HCL Technologies down by 1.95%, Adani Ports and Special Economic Zone down by 1.83%, Bajaj Finance down by 1.56% and Eternal down by 1.50% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) in its latest data has showed that India's total outward foreign direct investment (FDI) commitments fell by 49.02 per cent month-on-month, dropping to $4.49 billion in May 2026 from $8.84 billion in April 2026. The decline was led by a reduction in overseas equity investments, loans, and guarantees. However, total financial commitments by Indian entities overseas increased 34.6 per cent year-on-year in May 2026 from $3.34 billion recorded in May 2025.  

According to the data, equity investments abroad plummeted to $1,247.82 million in May from $3,537.35 million in April, marking a sequential decline of about 64.72%. Overseas loans extended by Indian companies also moderated to $632.12 million in May from $1,299.69 million in April. Guarantees issued, which formed the largest component of overseas commitments, fell to $2,608.83 million in May from $3,999.79 million in the previous month, declining around 35 per cent. However, it increased from $1,122.37 million in May 2025. 

Among major overseas equity investments during the month, Indovida India invested $673.2 million, followed by Tata International at $130 million, Arvind Advanced Materials at $58 million, and ONGC Videsh Rovuma at $31.1 million.

The CNX Nifty ended at 23161.60, down by 53.35 points or 0.23% after trading in a range of 23072.05 and 23327.45. There were 16 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were ICICI Bank up by 1.83%, Mahindra & Mahindra up by 1.64%, Kotak Mahindra Bank up by 1.35%, JSW Steel up by 0.98% and Grasim Industries up by 0.60%. On the flip side, Infosys down by 2.68%, HCL Technologies down by 1.93%, Eternal down by 1.92%, Adani Ports and Special Economic Zone down by 1.87% and Trent down by 1.59% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 90.72 points or 0.88% to 10,345.53, France’s CAC rose 62.97 points or 0.77% to 8,224.80 and Germany’s DAX gained 3.89 points or 0.02% to 24,199.20.

Asian markets ended mostly lower on Thursday, tracking steep losses in Wall Street overnight, as fresh US-Iran military clashes cast doubt on the prospects for a peace deal, while the 4.2% annual rise in US CPI inflation boosted bets that the Federal Reserve will hike interest rates this year. Chinese and Hong Kong shares declined as shares of tech companies including Alibaba and JD.com tumbled on concerns about regulatory scrutiny. Although overall losses were limited as Brent crude fell below $93 a barrel after the US military said that it had completed its latest round of airstrikes targeting Iran, raising hopes that peace negotiations could resume. Japanese shares gained marginally, even though the Bank of Japan is widely expected to raise interest rates from 0.75% to 1% at its upcoming meeting. Seoul shares rose after government data showed South Korea's chip exports more than tripled from a year earlier in the first 10 days of June to $11 billion.