Key gauges end lower amid US-Iran tensions

Indian equity benchmarks extended losses to the second straight session on Tuesday as escalating US-Iran conflict, uptick in crude oil prices and persistent foreign fund outflows reinforced a risk-off sentiment in the markets. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,121.04 crore on Monday, according to exchange data. 

Some of the important factors in trade:

Overseas investments by Indian firms dip 48% in June 2026: The Reserve Bank of India (RBI) in its latest report has showed that India's outward foreign direct investment (OFDI) commitments declined by 47.92% to $2,990.73 million in June 2026 as against $5,742.22 million in June 2025, with decline in equity, loan and guarantee commitments. 

India looks forward to building ‘closer ties’ with Panama: With an aim to deepen and broaden economic partnership, External Affairs Minister S. Jaishankar has said India looks forward to building 'closer ties' with Panama, describing that country as a strategically located and economically stable partner with significant potential for cooperation.

Nine key infrastructure sectors’ output growth rises to 5-month high of 5% in June: The Ministry of Commerce & Industry in its latest data has showed that nine key infrastructure sectors’ output growth rose to a five-month high of 5 per cent in June 2026 due to an increase in output of cement, electricity and iron ore. 

India invites applications for car import quota of 2026 under India-UK CETA: With India-UK Comprehensive Economic and Trade Agreement (CETA) coming into effect, India has invited the first round of applications for the allocation of 2026 import quotas for fully-built passenger cars and goods vehicles under the duty concession provisions of the India-UK free trade agreement. 

Global front: European markets were trading higher amid optimism of the fresh diplomatic efforts that are underway will help ease Middle East tensions. Investors also looked ahead to the European Central Bank's monetary policy announcement due on Thursday. Asian markets ended mostly higher as chip stocks rebounded from recent declines, helping offset concerns over a return of armed hostilities in the Middle East. 

Finally, the BSE Sensex fell 238.41 points or 0.31% to 77,470.11 and the CNX Nifty was down by 50.80 points or 0.21% to 24,187.70.

The BSE Sensex touched high and low of 77,753.18 and 77,337.33, respectively. There were 21 stocks advancing against 9 stocks declining on the index. 

The top gaining sectoral indices on the BSE were Realty up by 1.08%, Basic Materials up by 0.98%, Telecom up by 0.97%, Auto up by 0.88% and Metal up by 0.52%, while IT down by 0.66%, Energy down by 0.44%, PSU down by 0.22%, FMCG down by 0.20% and TECK down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.04%, Ultratech Cement up by 1.69%, Interglobe Aviation up by 1.69%, HCL Technologies up by 1.54% and Mahindra & Mahindra up by 1.15%. On the flip side, HDFC Bank down by 2.10%, State Bank of India down by 1.59%, Reliance Industries down by 1.48%, TCS down by 1.25% and Infosys down by 1.23% were the top losers.

Meanwhile, with an aim to deepen and broaden economic partnership, External Affairs Minister S. Jaishankar has said India looks forward to building 'closer ties' with Panama, describing that country as a strategically located and economically stable partner with significant potential for cooperation. Panama's Minister for Foreign Affairs, Javier Martínez-Acha Vasquez, is on an official visit to India from July 19 to 23, during which he is scheduled to participate in a series of engagements.

Jaishankar expressed confidence that the Panamanian foreign minister's visit would 'further strengthen our relationship across all domains.' Describing Panama as a 'natural bridge' for India to global trade routes and the wider Latin American region, he said the country's logistics infrastructure, anchored by the Panama Canal, 'certainly sets a global benchmark.'

The External Affairs Minister said Vasquez's visit builds on the 'strong momentum of high-level exchanges that we have had.' He added 'I believe that both our governments and our leaders are very keen on deepening and broadening our partnership. We certainly look forward to closer ties with Panama because you offer both a strategic location as well as enormous economic stability and potential for a partner like India.'

Jaishankar said India values Panama's interest in expanding cooperation across a wide range of sectors, including education, scholarships, pharmaceuticals, technology, and, most importantly, trade. Highlighting Panama's economic performance, he said 'We note that you have had a consistently high growth trajectory. As we ourselves accelerate development towards the goal of 'Viksit Bharat' (Developed India) by 2047, we believe our bilateral relationship will become even more important.'

CNX Nifty touched high and low of 24,262.20 and 24,135.65, respectively. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 2.77%, Bajaj Finserv up by 2.11%, Eicher Motors up by 1.73%, Ultratech Cement up by 1.45% and HCL Technologies up by 1.44%. On the flip side, HDFC Bank down by 2.07%, Infosys down by 1.52%, State Bank Of India down by 1.48%, TCS down by 1.43% and Reliance Industries down by 1.40% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 32.84 points or 0.31% to 10,557.60, France’s CAC rose 28.89 points or 0.35% to 8,369.00 and Germany’s DAX gained 120.71 points or 0.49% to 24,967.40.

Asian markets ended mostly higher on Tuesday amid hopes that United States and Iran will resume peace negotiations. Although, some gains were limited after Houthi leaders in Yemen declared a naval blockade against Saudi Arabia, US President Donald Trump vowed that Iran will pay dearly for every US soldier killed, and Trump announced new 50% tariffs on a wide range of Canadian imports due to alleged discriminatory treatment of American products. Chinese shares jumped, a day after several state-owned enterprises announced measures including share buybacks, stake increases and dividend payouts as they remain confident in the prospects of the country's capital market. Japanese shares rallied as traders returned to their desks after a long holiday weekend, with technology stocks leading the advance. South Korea's Kospi index climbed as investors went bargain hunting for tech heavyweights following last week's sharp selloff. Meanwhile, Hong Kong shares ended flat as investors remained on the sidelines ahead of Hong Kong's inflation data due later in the day.