Key gauges end lower amid renewed flare-up in West Asia

Indian equity benchmarks ended over half percent lower on Tuesday as a sharp surge in crude oil prices due to the renewed flare-up in West Asia dented investors' sentiment. Fresh foreign fund outflows and the falling rupee also put pressure on the markets. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,062.27 crore on Monday, according to exchange data. 

Some of the important factors in trade:

India’s wholesale inflation remains elevated at 9.87% in June: India's wholesale price index (WPI) inflation surged to 9.87 per cent in the month of June 2026 from 9.68 per cent in May 2026, as a fresh spike in food, non-food articles and minerals outweighed a moderation in fuel inflation. 

India sees 15.52% rise in merchandise exports in June: The commerce ministry in its latest data has showed that India’s merchandise exports rose by 15.52 per cent to $40.41 billion in June 2026 as compared to $34.98 billion in June 2025, driven by sustained shipments across key sectors despite broader global economic challenges.

India, EU likely to complete legal scrubbing of trade agreement soon: 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. 

Engineering exports post double-digit growth despite global uncertainty, challenges: India's engineering exports rising nearly 21 per cent year-on-year to $11.48 billion in June reflects the sector's resilience despite global uncertainties. Engineering goods exports increased from $9.50 billion in June 2025 to $11.48 billion in June this year. 

Global front: European markets were trading mostly in red as worries about Middle East tensions and the resultant rise in oil prices triggered inflation and interest rate concerns, prompting investors to refrain from picking up stocks. Asian markets ended mostly higher as upbeat Chinese trade data helped offset concerns over escalating military clashes between the United States and Iran. 

Finally, the BSE Sensex fell 561.46 points or 0.72% to 77,054.94 and the CNX Nifty was down by 158.95 points or 0.66% to 24,052.05.  

The BSE Sensex touched high and low of 77,402.79 and 77,001.48, respectively. There were 6 stocks advancing against 24 stocks declining on the index.

The top gaining sectoral indices on the BSE were Utilities up by 0.70%, Metal up by 0.63%, Healthcare up by 0.53%, Telecom up by 0.44% and Power up by 0.38%, while Realty down by 1.91%, Auto down by 1.53%, Bankex down by 1.16%, IT down by 1.09% and Consumer Discretionary down by 1.08% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.65%, TCS up by 0.89%, Sun Pharma up by 0.84%, Tata Steel up by 0.64% and Adani Ports &SEZ up by 0.59%. On the flip side, HCL Technologies down by 4.42%, Interglobe Aviation down by 2.30%, Bajaj Finserv down by 2.21%, State Bank of India down by 2.13% and Mahindra & Mahindra down by 2.10% were the top losers.

Meanwhile, the Commerce Ministry in its latest data has indicated that India's merchandise exports to the United States (US), its largest export destination, declined marginally by 1.21 per cent year-on-year to $8.17 billion in June 2026 as compared to $8.27 billion in the corresponding month last year. On the other hand, imports from the US grew sharply by 33.86 per cent to $5.5 billion in June 2025 as compared to $4.11 billion in June 2025. On a cumulative basis, the country's exports to the US declined marginally by 0.06 per cent to $25.46 billion during the April- June period of FY27, while imports rose 23.82 per cent to $16.65 billion. 

According to the data, the country's exports to China surged 31.49 per cent in June to $1.8 billion, while imports surged 40.26 per cent to $13.34 billion, resulting in a trade deficit of $11.54 billion. During April-June 2026-27, the country's merchandise exports to China rose 27.54 per cent to $5.6 billion, while imports jumped 27.94 per cent to $38.04 billion. Similarly, exports to Singapore grew 48.91 per cent year-on-year during June 2026 to $1.44 billion. During April-June 2026-27, exports jumped 101.16 per cent to $6.51 billion.

India has also recorded positive exports growth to the UAE, the Netherlands, the UK, Germany, South Africa, Bangladesh, Tanzania, Australia, Malaysia, Sri lanka, Italy, and Vietnam during the reporting period. However, exports to Saudi Arabia and France registered a decline in June. On the other hand, imports from Russia, the UAE, Korea, Singapore, Japan, Germany, Oman, Malaysia, Taiwan, Thailand, Brazil, and Nigeria increased. Imports in June from Oman, Taiwan, Brazil and Nigeria surged 135.57 per cent to $1.38 billion, 135 per cent to $1.5 billion, 162.3 per cent to $1.15 billion, and 301.91 per cent to $996.40 million.

CNX Nifty touched high and low of 24,157.10 and 24,023.70, respectively. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.69%, Apollo Hospital up by 1.45%, Sun Pharma up by 1.22%, Dr. Reddy's Labs. up by 0.92% and Tata Steel up by 0.87%. On the flip side, HCL Technologies down by 4.63%, Shriram Finance down by 3.43%, HDFC Life Insurance down by 2.97%, Tata Motors Passenger down by 2.64% and State Bank of India down by 2.34% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 49.27 points or 0.47% to 10,449.02 and Germany’s DAX lost 166.35 points or 0.66% to 24,947.90, while France’s CAC rose 12.53 points or 0.15% to 8,351.50.

Asian markets ended mostly higher on Tuesday, even as Brent crude prices jumped above $86 a barrel - bringing gains for the week to more than 10% after US President Donald Trump reimposed a blockade on Iranian ships transiting the Strait of Hormuz and proposed to impose a 20% fee on all cargo passing through the vital waterway for guarding it. Chinese shares gained after customs data revealed June exports grew by 27% year-on-year and imports jumped by 36%, both drastically beating market expectations. Moreover, Japan's Nikkei rallied on bargain-buying.