Markets slip deep in red during late trade

Benchmarks slid deep in red following US President’s comments in Ankara ahead of NATO summit. Following recent clashes between US and Iran, the US President said that the memorandum of understanding signed with Iran to end the conflict was ‘over’. He added that he didn't want to engage with Iran. His comments sparked caution among investors with broad base selling seen across sectors. Besides, Brent crude oil prices sparked up over 6% to trade near $79 a barrel mark. Further, traders overlooked United Nations Trade and Development (UNCTAD) report indicating foreign direct investment (FDI) inflows into India increased by 44% to $39 billion in 2025. 

On the global front, Asian equity markets were trading mixed amid concerns over valuations of AI related stocks. European equity markets were trading lower as tension between Iran and US escalated fuelling global crude oil prices.

The BSE Sensex is currently trading at 76476.25, down by 1704.47 points or 2.18% after trading in a range of 76382.25 and 77851.18. All 30 stocks were declining on the index.

The top losing sectoral indices on the BSE were Bankex down by 2.41%, FMCG down by 2.33%, Auto down by 2.16%, Energy down by 1.95% and Oil & Gas down by 1.93%, while there were no gainers. 

The top losers on the Sensex were Interglobe Aviation down by 5.21%, Maruti Suzuki India down by 4.07%, Bajaj Finance down by 3.33%, Ultratech Cement down by 3.15% and Hindustan Unilever down by 3.14%.

Meanwhile, the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has witnessed strong traction since its rollout, with 4,11,497 guarantees issued and the guaranteed amount touching Rs 1,55,229 crore, underscoring its widespread adoption across the financial sector. According to the Ministry of Finance, 98% of all guarantees issued (by number) have benefited MSMEs, while 82% of the total guaranteed amount is also towards MSMEs. The results from ECLGS 5.0 reflect the government's continued commitment to building a resilient, responsive credit ecosystem.

In order to maximise awareness and adoption, the Department of Financial Services (DFS) has led a structured outreach campaign across the country. The phase 1 is completed during the period of May 20, 2026 to June 06, 2026 across nine locations, conducted through State Level Bankers' Committees (SLBCs) with active participation from the National Credit Guarantee Trustee Company (NCGTC), PSB Alliance, banks, industry associations, and enterprises. Further, the phase 2 is currently underway at 10 locations, of which 4 have been completed.

Meanwhile, the ECLGS 5.0, approved by the Union Cabinet on May 5, 2026, is delivering fast, large-scale liquidity support to businesses affected by the West Asia geopolitical situation. The scheme is designed to provide risk mitigation for lending institutions to provide additional credit to borrowers, thereby helping businesses to tide over cash-flow disruptions and sustain operations. By extending 100% guarantee coverage to additional loans of MSMEs and 90% to other business segments, the scheme has allowed financial institutions to lend more confidently, ensuring liquidity reaches the needy sectors.

The CNX Nifty is currently trading at 23859.30, down by 539.40 points or 2.21% after trading in a range of 23845.00 and 24300.00. There were 3 stocks advancing against 47 stocks declining on the index.

The few gainers on Nifty were ONGC up by 1.32%, Bajaj Auto up by 0.29% and Wipro up by 0.15%. On the flip side, Interglobe Aviation down by 5.38%, Shriram Finance down by 5.28%, JIO Financial Serv. down by 5.24%, Maruti Suzuki India down by 4.11% and Tata Consumer Products down by 3.48% were the top losers.

Asian equity markets were trading mixed; Taiwan Weighted added 255.3 points or 0.56% to 45,734.41, Hang Seng advanced 640.11 points or 2.65% to 24,137.00 and Straits Times rose 44.72 points or 0.83% to 5,386.96, while Nikkei 225 slipped 986.96 points or 1.47% to 67,270.00, KOSPI dropped 409.52 points or 5.65% to 7,246.79, Shanghai Composite weakened 19.36 points or 0.49% to 3,970.88 and Jakarta Composite plunged 68.2 points or 1.15% to 5,918.30.

European equity markets were trading lower; UK’s FTSE 100 decreased 165.27 points or 1.57% to 10,500.61, France’s CAC fell 180.74 points or 2.19% to 8,255.50 and Germany’s DAX lost 556.25 points or 2.23% to 24,909.00.