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Markets trade under pressure amid rise in crude oil prices, persistent foreign investor selling
Apr-07-2026

Indian equity benchmarks made negative start on Tuesday tracking weak global cues and rising geopolitical tensions. Markets traded lower with cut of over half a percent each in early deals amid selling in Auto, Consumer Durables and Consumer Discretionary counters. There was some volatility amid weekly F&O expiry of Nifty derivatives. Further, rising crude oil prices and persistent foreign investor selling weighed on sentiment. Traders remained on sidelines as the Reserve Bank's rate-setting panel started its three-day brainstorming session on the first bi-monthly monetary policy of the fiscal amid expectations of a status quo on the benchmark lending rate in view of apprehensions of a spike in inflation due to ongoing West Asia crisis.

On the global front, Asian markets were trading mixed as oil prices continued to soar amid US President Donald Trump's new deadline to Iran. The US, Iran failed to reach a ceasefire agreement. Iran turned down a US proposal for a ceasefire, instead sending back a ten-point response that calls for a permanent end to the war.

The BSE Sensex is currently trading at 73642.30, down by 464.55 points or 0.63% after trading in a range of 73282.41 and 73871.15. There were 7 stocks advancing against 23 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 0.54%, Metal up by 0.49%, Realty up by 0.35% and TECK up by 0.29%, while Auto down by 1.42%, Consumer Durables down by 1.31%, Consumer Discretionary down by 1.11%, Bankex down by 1.03% and Capital Goods down by 0.83% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 1.22%, Bajaj Finance up by 0.95%, Tech Mahindra up by 0.80%, Sun Pharma up by 0.53% and TCS up by 0.51%. On the flip side, Interglobe Aviation down by 2.00%, Eternal down by 1.66%, Mahindra & Mahindra down by 1.64%, Ultratech Cement down by 1.53% and Titan Company down by 1.40% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman said that strong fiscal discipline has given India enough flexibility to increase capital expenditure, support sectors affected by the West Asia crisis, and allow the Reserve Bank of India to consider further rate cuts. She explained that sound public finance helps a country handle economic downturns better. While many nations with high debt struggle to act, India has enough fiscal space due to years of careful planning. This has enabled the government to cut fuel taxes and provide targeted relief to key sectors.

Observing that the current year is even more challenging than the previous one, she said ‘the escalation of Middle East conflict has evolved from a regional security concern into a systemic tremor threatening the vital arteries of global energy, and hardening the lines of a new, multipolar world order.’ Recalling various global events that shadowed 2025, she said the year was monumental in more ways than policymakers initially thought. She added ‘Trade fragmentation has introduced severe uncertainty into global supply chains. This led to sharp downward revisions in global growth forecasts, but the year ended more optimistically than previously perceived, particularly for India’.

Talking about India debt-to-GDP ratio, she said the country stands out as general government debt-to-GDP ratio (which includes States’ debt), at around 81 per cent, is the lowest among major economies after Germany. More importantly, she said India is the only major economy where the IMF projects this ratio to fall significantly - to 75.8 per cent by 2030 - while the debt outlook for the advanced economies such as US, China, Germany, and others is projected to worsen. She added ‘Our external debt-to-GDP ratio stands at just 19.1 per cent (as of September 2025) - one of the lowest in the emerging market world. India’s foreign exchange reserves, at over $688 billion (as of March 31, 2026), provide import cover of approximately 11 months - a substantial buffer’.

Recalling India’s ‘Fragile Five’ economy tag over a decade ago, she said India is now the fastest-growing major economy in the world. She said ‘We began with a fiscal deficit on an unsustainable trajectory. We have brought it to 4.4 per cent of GDP, en route toward 50 per cent debt-to-GDP by 2030-31. We began with a tax system built on suspicion. We have created one premised on trust’. She added the road to Viksit Bharat 2047 is long, and the challenges ahead - climate finance, subnational fiscal reform, debt management, the fiscal implications of demographic change, the public investment return challenge, technology-led disruptions - are formidable.

The CNX Nifty is currently trading at 22841.40, down by 126.85 points or 0.55% after trading in a range of 22719.30 and 22901.05. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.86%, Wipro up by 2.12%, ONGC up by 1.21%, HCL Technologies up by 1.17% and Bajaj Finance up by 0.94%. On the flip side, Eicher Motors down by 2.14%, Max Healthcare down by 2.11%, Interglobe Aviation down by 1.89%, Mahindra & Mahindra down by 1.73% and Titan Company down by 1.62% were the top losers.

Asian markets were trading mixed; Taiwan Weighted surged 509.41 points or 1.56% to 33,081.84, KOSPI increased 1.58 points or 0.03% to 5,451.91 and Shanghai Composite was up by 1.07 points or 0.03% to 3,881.17. On the other hand, Nikkei 225 slipped 54.68 points or 0.1% to 53,359.00, Straits Times fell 16.59 points or 0.33% to 4,955.81 and Jakarta Composite was down by 12.12 points or 0.17% to 6,977.31.
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