Indian markets made a negative start on Monday and extended their losses as investors turned cautious amid rising geopolitical tensions in West Asia. The escalation of the U.S.-Iran conflict triggered concerns over higher crude oil prices and its impact on global inflation and economic growth. Brent crude futures jumped over 2% to above $90 per barrel mark for the first time in over a month, adding to concerns for import-dependent economies like India. Sensex and Nifty were trading lower with cut of over half a percent each in early deals led by selling pressure in banking stocks after the Q4 results announcement. Traders remained cautious, as foreign institutional investors (FIIs) were net sellers on July 17, offloading Indian equities worth Rs 376 crore.
On the global front, Asian markets were trading mostly higher with Chinese and Hong Kong shares climbing on optimism over domestic artificial intelligence developments. Back home, in stock specific developments, Axis Bank and HDFC Bank were leading the losers, falling around 5%, following their below-expected Q1 results.
The BSE Sensex is currently trading at 77485.16, down by 666.29 points or 0.85% after trading in a range of 77444.79 and 78151.45. There were 15 stocks advancing against 15 stocks declining on the index.
The top gaining sectoral indices on the BSE were Utilities up by 0.85%, Power up by 0.78%, Healthcare up by 0.71%, Metal up by 0.68% and Basic Materials up by 0.53%, while Bankex down by 1.39%, Realty down by 0.87%, Auto down by 0.47% and Consumer Discretionary down by 0.06% were the top losing indices on BSE.
The top gainers on the Sensex were Trent up by 2.16%, NTPC up by 1.30%, Bharti Airtel up by 1.14%, Tech Mahindra up by 0.89% and Reliance Industries up by 0.80%. On the flip side, Axis Bank down by 5.41%, HDFC Bank down by 4.78%, Kotak Mahindra Bank down by 3.05%, Interglobe Aviation down by 1.63% and Maruti Suzuki India down by 1.49% were the top losers.
Meanwhile, after concluding a Free Trade Agreement (FTA) with the European Union (EU), Commerce and Industry Minister Piyush Goyal has said that India and the EU are now working on a proposed Investment Protection Agreement and a Geographical Indications (GI) Agreement. He stated that these trade pacts would create significant opportunities for businesses on both sides. Highlighting India's recent trade agreements with the UK, the European Free Trade Association (EFTA) bloc, and the EU, Goyal noted that India is now effectively connected to the entire European market.
The minister also highlighted the vast opportunities for bilateral cooperation with Estonia across sectors such as education, defence, space, skill development, and tourism. Inviting greater investments from Estonia, he said India has undertaken a series of reforms to create a more investor-friendly business environment. Estonia, a Baltic nation in Northern Europe, is known for its advanced digital governance and innovation-driven economy. It is a member of the EU, the eurozone, and the Organisation for Economic Co-operation and Development (OECD).
Emphasising the government's reform agenda, Goyal said 'We have undertaken a number of reforms over the past several years, with a focus on streamlining governance and making it easier to do business.' He added that India is also encouraging its industries to invest in technology and expand their global business footprint, enabling deeper integration with developed economies.
He further stated that the reforms implemented over the past decade have made India an attractive long-term investment destination. Over the last two decades, he noted that India has attracted more than $1 trillion in foreign direct investment, with annual inflows averaging around $100 billion, in addition to substantial investments in the stock market. He also said that India is pursuing social security agreements with several countries.
The CNX Nifty is currently trading at 24178.15, down by 156.15 points or 0.64% after trading in a range of 24149.90 and 24262.35. There were 27 stocks advancing against 23 stocks declining on the index.
The top gainers on Nifty were Trent up by 2.04%, ONGC up by 1.39%, NTPC up by 1.32%, JSW Steel up by 1.29% and Cipla up by 1.28%. On the flip side, Axis Bank down by 5.68%, HDFC Bank down by 4.47%, Kotak Mahindra Bank down by 2.86%, Interglobe Aviation down by 1.45% and Maruti Suzuki India down by 1.30% were the top losers.
Asian markets were trading mostly in green; Hang Seng jumped 509.76 points or 2.03% to 25,072.00, Taiwan Weighted surged 232.88 points or 0.55% to 42,904.15, Jakarta Composite gained 57.57 points or 0.93% to 6,233.11, Shanghai Composite strengthened 44.24 points or 1.18% to 3,808.39 and Straits Times was up by 3.28 points or 0.06% to 5,512.71, while KOSPI dropped 334.37 points or 4.9% to 6,486.23.
