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Markets trade lower amid ongoing geopolitical tensions, rising oil prices
Apr-06-2026

Indian equity benchmarks made flat-to-positive start on Monday and soon turned volatile to trade lower with cut of over half a percent each in early deals dragged by pharma, realty, and oil and gas stocks as investors remained cautious amid the ongoing geopolitical tensions, rising oil prices, and the upcoming RBI monetary policy meeting. Foreign fund outflows also dented sentiments. Foreign Institutional Investors (FIIs) continued their selling streak and offloaded equities worth Rs 9,931 crore on April 2, 2026. Some cautiousness came as Moody's Ratings slashed India's economic growth estimates for the current fiscal to 6% from 6.8% earlier, saying the ongoing conflict in West Asia will moderate growth momentum and raise inflation risks. Besides, Commerce Secretary Rajesh Agrawal said that if the West Asia conflict continues, India's exports to other parts of the world will also be impacted.

On the global front, Asian markets were trading mostly in green even as oil prices continue to soar amid US President Donald Trump's new statement on Iran. Trump warned that the U.S. would target Iran’s power plants and civilian infrastructure if Tehran failed to fully reopen the Strait of Hormuz. In response, Iran stated that the critical waterway would only be fully reopened once damages caused by the ongoing conflict are compensated, indicating a prolonged standoff that could disrupt global oil supply chains. Markets in China and Hong Kong were closed on account of Ching Ming Festival, while Taiwan market remained shut on Tomb Sweeping Day. 

The BSE Sensex is currently trading at 72887.97, down by 431.58 points or 0.59% after trading in a range of 72790.49 and 73588.75. There were 10 stocks advancing against 20 stocks declining on the index.

The top gaining sectoral indices on the BSE were Auto up by 0.21%, Power up by 0.20%, Capital Goods up by 0.19%, IT up by 0.19% and Metal up by 0.19%, while Oil & Gas down by 1.30%, Healthcare down by 1.29%, Energy down by 1.15%, FMCG down by 0.48% and Industrials down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 4.79%, Titan Company up by 1.49%, Tech Mahindra up by 0.77%, Bharat Electronics up by 0.55% and Axis Bank up by 0.43%. On the flip side, Reliance Industries down by 2.33%, Sun Pharma down by 2.13%, Kotak Mahindra Bank down by 1.94%, Adani Ports & SEZ down by 1.90% and Interglobe Aviation down by 1.34% were the top losers.

Meanwhile, amid ongoing U.S. and Israeli operations in Iran, Commerce Secretary Rajesh Agrawal has stated that India’s exports to global markets could be affected if the West Asia conflict continues. He added, however, that exports for the previous financial year are still expected to remain on a positive trajectory despite the crisis. He noted that the situation has already had a noticeable impact on both imports and exports in the past month, particularly because energy constitutes a significant share of India’s import market.

He noted that West Asia is an important market, accounting for around 12-13% of India’s exports, and exports to the said region would be directly affected. He added that if the conflict persists, exports to other parts of the world could also be impacted as global value chains adjust. He emphasized that the government is aware of the situation and monitoring it closely. He further stated that the exact impact of the West Asia crisis on Indian exports will become clearer in the coming weeks.

He also said the Centre is working to minimise disruptions to supply chains as much as possible, even as it prepares for a potential decline in both exports and imports. He noted that the impact is unlikely to be one-sided, with imports also expected to fall alongside exports. He further explained that even if the conflict ends soon, its effects could persist for months or even years, depending on the extent of damage to supply chains and infrastructure. He added that at this stage, it is difficult to take a long-term view of the situation. He added that various arms of the government are working together to prioritise the limited supply of LPG and mitigate shortages, including by diversifying imports and sourcing from alternative suppliers. He further said that the government and industry are collaborating to identify ways to strengthen and make supply chains more resilient.

The CNX Nifty is currently trading at 22589.90, down by 123.20 points or 0.54% after trading in a range of 22589.90 and 22798.25. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Trent up by 5.26%, Titan Company up by 1.51%, Shriram Finance up by 1.30%, Bajaj Auto up by 1.14% and Hindalco up by 1.10%. On the flip side, Reliance Industries down by 2.41%, Sun Pharma down by 2.00%, Kotak Mahindra Bank down by 1.94%, Adani Ports & SEZ down by 1.80% and Max Healthcare Inst down by 1.59% were the top losers.

Asian markets were trading mostly higher; Nikkei 225 surged 675.51 points or 1.27% to 53,799.00, KOSPI increased 43.93 points or 0.82% to 5,421.23 and Straits Times rose 16.55 points or 0.33% to 4,964.05, while Jakarta Composite fell 52.93 points or 0.75% to 6,973.85.
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