Sensex, Nifty trade lower amid geopolitical tension, rising crude oil prices

Indian markets made gap-down opening on Tuesday tracking sharp jump in crude prices amid simmering tensions between United States and Iran. Brent crude futures were hovering around $85 a barrel mark. Sensex and Nifty were trading lower with cut of around 0.60% each in early deals amid foreign fund outflows. As per NSE data foreign institutional investors sold shares worth Rs 3,062.27 crore on Monday. Traders were concerned as Indias retail inflation breached the RBI’s inflation target for the first time in 17 months. The consumer price index rose to 4.38% year-over-year in June, up from 3.93% in May, led by higher fuel and food costs.

On the global front, Asian markets were trading mostly lower after US President Donald Trump said Washington was reinstating its blockade of Iranian shipping in the Gulf and would impose a 20% fee on cargo passing through the Strait of Hormuz, stoking concerns over global energy supplies.

The BSE Sensex is currently trading at 77135.32, down by 481.08 points or 0.62% after trading in a range of 77063.41 and 77402.79. There were 8 stocks advancing against 22 stocks declining on the index.

The top gaining sectoral indices on the BSE were Metal up by 0.54%, Healthcare up by 0.53%, TECK up by 0.32% and FMCG up by 0.14%, while Realty down by 1.53%, Auto down by 1.46%, Industrials down by 1.11%, Bankex down by 1.10% and Capital Goods down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.35%, TCS up by 1.00%, Tata Steel up by 0.72%, Sun Pharma up by 0.58% and Hindustan Unilever up by 0.33%. On the flip side, Interglobe Aviation down by 2.44%, HCL Technologies down by 2.09%, Bajaj Finance down by 2.09%, Mahindra & Mahindra down by 2.01% and Bajaj Finserv down by 1.90% were the top losers.

Meanwhile, in a view to fast-track the trade pact process, Commerce and Industry Minister Piyush Goyal has said that India and the 27-member European Union (EU) are likely to complete the legal scrubbing of the trade agreement text within the next week or two. He added that the pact is likely to be operationalised a few months after the India-UK trade agreement comes into force on July 15.

Addressing the India-Spain Business Forum, Goyal said there was no criticism of the India-EU trade agreement from any of the EU member states. He noted that all member countries are fully aligned with the partnership and added that there is no dissent or dissatisfaction in India either. India and the EU together account for nearly 30 per cent of the global economy and trade.

Talking about India-Spain relations, the minister said there is significant potential to enhance bilateral trade, which stood at $9.2 billion in 2025-26. He identified education and tourism as key sectors for greater collaboration and stressed the need to develop a roadmap for future cooperation. 

The European Union comprises 27 member states, including Germany, France, Italy, Spain, Belgium and Finland. While around 300 Spanish companies operate in India, nearly 100 Indian firms have a presence in Spain. Goyal suggested that both countries should deepen investments in each other's people and businesses, leverage the opportunities created by the proposed India-EU FTA, and focus on strengthening tourism and talent mobility.

The CNX Nifty is currently trading at 24064.70, down by 146.30 points or 0.60% after trading in a range of 24050.55 and 24157.10. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.49%, Hindalco Industries up by 1.42%, Bharti Airtel up by 1.21%, Nestle India up by 0.97% and TCS up by 0.87%. On the flip side, Shriram Finance down by 3.71%, Interglobe Aviation down by 2.74%, Mahindra & Mahindra down by 2.31%, Bajaj Finance down by 2.08% and Bajaj Auto down by 2.08% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 1392.57 points or 3.17% to 43,987.95, Nikkei 225 slipped 422.73 points or 0.63% to 66,820.00, KOSPI dropped 190.15 points or 2.87% to 6,616.78, Hang Seng declined 121.72 points or 0.51% to 24,092.00, Shanghai Composite weakened 25.87 points or 0.67% to 3,887.92 and Straits Times fell 5.48 points or 0.1% to 5,464.86, while Jakarta Composite added 23.14 points or 0.38% to 6,060.98.