Key indices end lower amid West Asia tensions

Indian equity benchmarks ended a volatile trading session on a lower note on Thursday, as investors remained cautious amid escalating geopolitical tensions in West Asia following fresh military action by the United States against Iran. Unabated foreign fund outflows and a spike in US inflation also led to the muted trading in the markets. 

Some of the important factors in trade:  

India's total outward FDI commitments fall 49.02% in May: 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. 

India’s GDP growth likely to slow to 6.6% in FY27: BMI, a Fitch group company, has said that India's Gross Domestic Product (GDP) growth is likely to slow to 6.6% in FY27 as compared to 7.7 per cent in FY26, driven by weaker investments and consumption growth along with trade-related disruptions stemming from the West Asia crisis. 

Guarantees issuance under ECLGS 5.0 hits 1 lakh with amount exceeding Rs 48,000 crore: Ministry of Finance in its latest release has showed that the total number of guarantees issued under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed the 1 lakh mark, reaching a total of 1,06,549 with total amount of guarantees at Rs 48,484.26 crore, as on June 9, 2026. 

India attracted $843 billion in FDI between 2014-15 and 2025-26: Sumeet Jarangal, joint secretary in the department for promotion of industry and internal trade (DPIIT) has said that India attracted cumulative Foreign Direct Investment (FDI) inflows of $843 billion between 2014-15 and 2025-26, registering a 169 per cent increase over the preceding 12-year period. 

Global front: European markets were trading higher as investors kept a close eye on escalating Middle East tensions and awaited the European Central Bank's (ECB) rate decision for direction. Asian markets ended mostly lower on Thursday, amid U.S.-Iran tensions and interest-rate hike concerns. 

Finally, the BSE Sensex fell 150.63 points or 0.20% to 73,832.55 and the CNX Nifty was down by 53.35 points or 0.23% to 23,161.60.

The BSE Sensex touched high and low of 74,394.34 and 73,518.75, respectively. There were 9 stocks advancing against 21 stocks declining on the index. 

The few 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 top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.87%, Mahindra & Mahindra up by 1.67%, Kotak Mahindra Bank up by 1.11%, Sun Pharma up by 0.65% and Bharti Airtel up by 0.38%. On the flip side, Infosys down by 2.71%, HCL Technologies down by 1.95%, Adani Ports &SEZ down by 1.91%, Eternal down by 1.82% and Bajaj Finance down by 1.56% were the top losers.

Meanwhile, BMI, a Fitch group company, has said that India's Gross Domestic Product (GDP) growth is likely to slow to 6.6% in the current fiscal (FY27) as compared to 7.7 per cent in FY26. It said the slowdown could be driven by weaker investments and consumption growth along with trade-related disruptions stemming from the West Asia crisis. BMI's forecast is in line with the Reserve Bank of India's (RBI) projection of 6.6% growth for FY27. 

BMI attributed the expected moderation in growth rate this fiscal to three factors. First, the impact of last year's GST reforms on domestic consumption is likely to fade. Second, higher price inflation which BMI expects to hit 5.3 per cent in FY27 will hinder consumption growth amid disruption at Strait of Hormuz. Thirdly, BMI expects investment growth to slow during the fiscal year. It said ‘this slowdown is not due to our new forecast of accumulative 50 basis points (bps) rate hike by the RBI in FY27, since the effect on growth will primarily be felt during FY28’. 

BMI expects the rupee to trade at around 95.1 against the US dollar during the current calendar year. It said the currency's depreciation from its 87 average level in 2025 will support export competitiveness, and help offset some of the economic impact arising from the Iran conflict's terms-of-trade shock. It said the GST reforms implemented in September 2025 caused a consumption boom in December quarter FY26. Thereafter, consumption growth fell by 1.1 percentage points to 7.1 per cent y-o-y in March quarter FY26.  

CNX Nifty touched high and low of 23,327.45 and 23,072.05, respectively. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 1.84%, ICICI Bank up by 1.59%, Kotak Mahindra Bank up by 1.16%, JSW Steel up by 0.80% and Sun Pharmaceutical Industries up by 0.71%. On the flip side, Infosys down by 2.25%, HCL Technologies down by 1.61%, Adani Ports &SEZ down by 1.60%, Eternal down by 1.58% and Bajaj Finance down by 1.37% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 89.54 points or 0.87% to 10,344.35, France’s CAC rose 68.17 points or 0.84% to 8,230.00 and Germany’s DAX gained 7.89 points or 0.03% to 24,203.20.

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.