Key gauges end lower for 2nd consecutive session

Indian equity benchmarks ended lower for the second consecutive session on Tuesday due to selling in IT, TECK and FMCG shares amid uncertainty over the next round of US-Iran negotiations in Doha. The delayed onset and sluggish progress of the southwest monsoon and fresh foreign fund outflows also weighed on market sentiment.  

Some of the important factors in trade:  

External debt of India stands at $762.8 billion at end of March 2026: The Reserve Bank of India (RBI) in its data on 'India's External Debt as at the end of March 2026' has stated that total external debt of India stood at $762.8 billion at the end of March 2026, registering an increase of $26.3 billion over the year-ago period. 

India's FTA negotiations with Israel, GCC currently on hold amid West Asia crisis: Commerce and Industry Minister Piyush Goyal has said that India's negotiations for free trade agreements (FTAs) with Israel and the six-nation Gulf Cooperation Council (GCC) are currently on hold due to the ongoing West Asia crisis. 

India, Maldives start negotiations for free trade agreement: The commerce department stated that India and the Maldives have started negotiations for a free trade agreement. It said the discussions are being held via virtual mode and are expected to conclude on July 7 after beginning on June 29. 

Indian e-commerce exports could surge by another $10 billion over next 2-3 years: Rajesh Kumar Mishra, an additional director at the Directorate General of Foreign Trade (DGFT) has said that Indian e-commerce exports could surge by another $10 billion over the next two to three years, supported by the country's large MSME ecosystem. 

Global front: European markets were trading higher as technology stocks rebounded amid renewed optimism surrounding AI. Asian markets ended mixed as investors watched for a possible resumption of U.S.-Iran talks in Qatar to resolve differences over Strait of Hormuz and asset releases. 

Finally, the BSE Sensex fell 249.70 points or 0.33% to 76,478.67 and the CNX Nifty was down by 80.50 points or 0.34% to 23,865.75. 

The BSE Sensex touched high and low of 77,037.36 and 76,329.39, respectively. There were 11 stocks advancing against 19 stocks declining on the index.   

The top gaining sectoral indices on the BSE were Realty up by 1.23%, Consumer Durables up by 0.98%, Consumer Discretionary up by 0.81%, Healthcare up by 0.58% and Capital Goods up by 0.55%, while IT down by 2.48%, TECK down by 1.48%, FMCG down by 0.43%, Bankex down by 0.25% and Metal down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki India up by 5.14%, Titan Company up by 2.93%, Bajaj Finance up by 2.22%, Eternal up by 2.06% and Adani Ports & SEZ up by 1.89%. On the flip side, Infosys down by 3.49%, TCS down by 3.00%, HCL Technologies down by 2.82%, Tech Mahindra down by 2.08% and ITC down by 1.31% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its data on 'India's External Debt as at the end of March 2026' has stated that total external debt of India stood at $762.8 billion at the end of March 2026, registering an increase of $26.3 billion over the year-ago period. The data showed that valuation effect due to the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies amounted to $24.6 billion. The central bank said ‘Excluding the valuation effect, external debt would have increased by $51 billion instead of $26.3 billion at end-March 2026 over end-March 2025’.

The central bank also said that the external debt to GDP ratio increased to 20.8 per cent at end-March 2026 from 19.8 per cent during the corresponding period a year ago. At the end of March 2026, RBI said long-term debt (with original maturity of above one year) stood at $613.5 billion, recording an increase of $11.6 billion over its level at end-March 2025. The share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.6 per cent at end-March 2026 from 18.3 per cent at end-March 2025. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 21.6 per cent at end-March 2026 from 20.1 per cent at end-March 2025.

It said US dollar-denominated debt remained the largest component of India's external debt, with a share of 55.5 per cent at end-March 2026, followed by debt denominated in the Indian rupee (29.4 per cent), yen (6.4 per cent), SDR2 (4.3 per cent) and euro (3.7 per cent). RBI further said outstanding debt of the general government decreased, while non-government debt increased at end-March 2026 over the level a year ago. Loans remained the largest component of external debt, with a share of 34.7 per cent, followed by currency and deposits (22.3 per cent), trade credit and advances (19 per cent) and debt securities (16.1 per cent).

CNX Nifty touched high and low of 24,035.55 and 23,829.20, respectively. There were 25 stocks advancing against 25 stocks declining on the index. 

The top gainers on Nifty were Maruti Suzuki India up by 5.52%, Titan Company up by 3.41%, Bajaj Finance up by 3.17%, Adani Enterprises up by 2.62% and Eternal up by 2.24%. On the flip side, Eicher Motors down by 4.38%, Tata Consumer Products down by 3.58%, TCS down by 3.09%, Infosys down by 2.96% and Wipro down by 2.92% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 124.84 points or 1.19% to 10,609.06, France’s CAC rose 54.57 points or 0.65% to 8,421.90 and Germany’s DAX gained 399.91 points or 1.62% to 25,026.80.

Asian markets ended mixed on Tuesday as investors watched for a possible resumption of US-Iran peace talks in Doha that could help ease inflation concerns. However, Iran's foreign ministry spokesperson, Esmaeil Baghaei flatly rejected the claim, stating, “Over the coming days, we will not have any negotiation meetings with the US side at any level”. Hong Kong shares dropped, despite continued policy support from Beijing after Chinese central bank PBoC significantly boosted liquidity via its overnight reverse repo operations. Chinese shares gained as stronger-than-expected PMI data reinforced optimism about China's economic health. Data showed that China's official manufacturing PMI returned to expansion in June, and non-manufacturing activity expanded for a second month. Further, Japanese shares continued to benefit from optimism surrounding the global expansion of AI, supported by their strategic positioning and investments in the sector. Japanese shares also drew support from the yen’s slide, which was driven by expectations of a slow pace of interest-rate increases by the Bank of Japan.