Indian equity benchmarks made a slightly negative start on Tuesday amid weakness in global equities and foreign fund outflows. Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 635.91 crore on Monday. But, soon markets recovered lost ground and were trading flat with positive bias in early deals. Investors were keeping close eye on the ongoing India-US trade negotiations and direction of monsoon. Though, upside remained capped due to selling pressure in IT, TECK and Metal stocks. Also, there was some volatility in the markets ahead of weekly expiry of Nifty F&O contracts.
On the global front, Asian markets were trading mostly lower as investors assessed the possibility of further U.S. interest rate hikes. Market participants are also closely monitoring geopolitical developments and macroeconomic indicators for directional cues. Meanwhile, in Japan, manufacturing activity remained resilient. The S&P Global Japan Manufacturing PMI rose to 54.9 in June from 54.5 in May.
The BSE Sensex is currently trading at 77135.35, up by 41.28 points or 0.05% after trading in a range of 76878.66 and 77169.08. There were 20 stocks advancing against 10 stocks declining on the index.
The top gaining sectoral indices on the BSE were Healthcare up by 1.70%, Realty up by 0.98%, Capital Goods up by 0.49%, Industrials up by 0.40% and FMCG up by 0.28%, while IT down by 1.64%, TECK down by 1.04%, Metal down by 0.97%, Telecom down by 0.32% and Basic Materials down by 0.23% were the top losing indices on BSE.
The top gainers on the Sensex were Sun Pharma up by 1.50%, ICICI Bank up by 0.81%, Trent up by 0.77%, Eternal up by 0.66% and Bajaj Finserv up by 0.54%. On the flip side, Infosys down by 2.76%, TCS down by 1.97%, HCL Technologies down by 1.71%, Tech Mahindra down by 1.19% and Tata Steel down by 0.83% were the top losers.
Meanwhile, an article titled State of the Economy published in the Reserve Bank of India’s (RBI’s) June Bulletin has stated that an adverse south-west monsoon could pose headwinds to the domestic growth and inflation outlook, even as the global economic landscape remains fragile. It also noted that geopolitical tensions and trade disruptions persisted despite the recent interim peace deal in West Asia.
The article observed that the global economic environment remains fragile, even after some respite from the interim US-Iran peace agreement. It further noted that ‘any breakdown of the agreement may reignite material risks in terms of inflation expectations, disruption of critical energy infrastructure, delayed investment spending, food security concerns, an adverse financial stability outlook, and structurally lower growth.’
Despite a challenging global backdrop, the Indian economy grew by 7.8 per cent in Q4 2025-26, supported by private consumption and fixed investment. It said high-frequency indicators for the first two months of 2026-27 suggest sustained economic momentum. Consumer Price Index (CPI) inflation remained anchored despite a pickup in May. India’s external sector also remained resilient, supported by strong FDI inflows and adequate foreign exchange reserves.
The article further noted that the Indian economy entered this period of turbulence with stronger fundamentals than many other economies, enabling it to better absorb external shocks. Meanwhile, the central banks said the views expressed in the Bulletin article are those of the authors and do not represent the views of the Reserve Bank of India.
The CNX Nifty is currently trading at 24120.30, up by 17.40 points or 0.07% after trading in a range of 24040.05 and 24133.05. There were 35 stocks advancing against 15 stocks declining on the index.
The top gainers on Nifty were Dr. Reddy's Lab up by 2.60%, Cipla up by 1.75%, Sun Pharma up by 1.59%, Shriram Finance up by 0.98% and Apollo Hospital up by 0.84%. On the flip side, Infosys down by 2.76%, Hindalco down by 2.11%, TCS down by 2.02%, HCL Technologies down by 1.67% and Tech Mahindra down by 1.23% were the top losers.
Asian markets were trading mostly in red; Nikkei 225 slipped 968.96 points or 1.36% to 71,385.00, KOSPI dropped 447.16 points or 5.16% to 8,667.39, Taiwan Weighted lost 423.14 points or 0.89% to 47,318.37, Hang Seng declined 243.52 points or 1.04% to 23,525.00, Jakarta Composite plunged 25.6 points or 0.42% to 6,091.09 and Shanghai Composite weakened 15.55 points or 0.37% to 4,147.55, while Straits Times rose 13.3 points or 0.25% to 5,217.31.
