Indian markets eke out mild gains on Monday

Indian equity markets eked out mild gains on Monday after recovering from sharp early losses on account of strong gains in information technology stocks. However, there was a cautious undertone in markets as renewed U.S.-Iran hostilities in the Middle East and Iran's claim to have closed the vital Strait of Hormuz sent crude oil prices soaring.

Some of the important factors in trade: 

Over 1.7 crore ITRs filed for AY 2026-27: The Income Tax Department said that over 1.7 crore I-T returns have been filed for 2025-26 financial year so far.

India, Canada complete 3rd round of CEPA talks: In a significant step toward strengthening bilateral relations, India and Canada have concluded the third round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA) in Ottawa from July 6-10, 2026.

India needs to strengthen certification, standards, logistics, buyer networks to fully leverage India-UK FTA: The Global Trade Research Initiative (GTRI) has said that the India's free trade agreement (FTA) with the UK offers significant market access, but translating those opportunities into higher exports will require improvements in standards, certification, logistics and stronger buyer connections.

Govt, industry stakeholders hold talks on achieving $150 billion electronics export goal by 2030: The government and Industry stakeholders have held discussions on achieving the $150 billion electronics exports target by 2030. Discussions took place during a Chintan Shivir attended by senior representatives from the Centre, state governments, industry and Export Promotion Councils to discuss opportunities and challenges facing the country's electronics sector. 

Global front: European markets were trading mostly in green, while Asian markets ended mixed, amid renewed tensions in the Middle East and anxiety over the status of the Strait of Hormuz. Inflation and interest-rate fears returned to the fore after the U.S. launched fresh strikes against Iran and Tehran responded by attacking Gulf Arab states, including Bahrain, Kuwait, Qatar, Jordan and Oman, further straining a fragile ceasefire between the two countries.

Finally, the BSE Sensex rose 47.01 points or 0.06% to 77,616.40 and the CNX Nifty was up by 4.10 points or 0.02% to 24,211.00.  

The BSE Sensex touched high and low of 77,789.29 and 76,857.43, respectively. There were 12 stocks advancing against 18 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 3.49%, TECK up by 1.77%, Consumer Durables up by 0.59%, Utilities up by 0.35% and Auto up by 0.31%, while Telecom down by 0.96%, FMCG down by 0.82%, Capital Goods down by 0.82%, Metal down by 0.69% and Basic Materials down by 0.65% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 5.43%, HCL Technologies up by 5.02%, Tech Mahindra up by 3.34%, Infosys up by 3.17% and NTPC up by 2.18%. On the flip side, Tata Steel down by 2.09%, Eternal down by 1.55%, Interglobe Aviation down by 1.30%, Ultratech Cement down by 1.11% and Maruti Suzuki India down by 1.11% were the top losers.

Meanwhile, with an aim to promote the circular economy, the Material Recycling Association of India (MRAI) has recommended the government to abolish the 2.5 per cent import duty on aluminium scrap. It said the proposed measure would reduce input costs for recyclers and downstream manufacturers, thereby enhancing their global competitiveness.

Highlighting heavy dependence on overseas supplies, the industry body noted that nearly 80 -85 per cent of India's aluminium scrap needs are met through imports. It said making uninterrupted access to imported scrap is indispensable for sustaining domestic manufacturing and the growth of the recycling industry.

MRAI also pointed out that aluminium scrap remains the only major base metal scrap that continues to attract import duty in India, whereas copper, zinc and lead scrap have already been exempted. The body said countries such as Thailand, Malaysia, Indonesia, Japan and South Korea permit duty-free imports of aluminium scrap, giving their recycling industries a significant cost advantage.

CNX Nifty touched high and low of 24,259.80 and 24,000.20, respectively. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were TCS up by 5.44%, HCL Technologies up by 4.91%, Tech Mahindra up by 3.42%, Infosys up by 3.24% and Bajaj Auto up by 2.22%. On the flip side, Grasim Industries down by 2.16%, Tata Steel down by 2.13%, Nestle India down by 1.94%, Interglobe Aviation down by 1.55% and Eternal down by 1.54% were the top losers.

European markets were trading mostly in green; Germany’s DAX gained 49.31 points or 0.2% to 25,116.40 and France’s CAC rose 9.53 points or 0.11% to 8,348.50, while UK’s FTSE 100 decreased 9.63 points or 0.09% to 10,487.66.

Asian markets ended mixed on Monday amid renewed tensions over escalating US-Iran conflicts and threats to close the vital Strait of Hormuz. Iran announced the closure of the waterway ‘until further notice’- a claim US military and maritime authorities rejected. South Korea's Kospi led the regional losses, plunged almost 9% and triggered a market-wide circuit breaker after the sell-off erased $328 billion in market value, driven by heavy liquidations of AI and semiconductor heavyweights like Samsung Electronics and SK Hynix. Moreover, Japan’s Nikkei tumbled as rising crude oil prices clouded the outlook for corporate earnings growth. Meanwhile, market participants were cautious ahead of key inflation and GDP data releases from the US and China, as well as Federal Reserve Chair Kevin Warsh's first congressional testimony due this week. Investors were also watching the upcoming Bank of Korea (BOK) policy decision due on Thursday, with the central bank widely expected to lift its base rate to 2.75%.