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Sensex, Nifty trade lower amid renewed Middle East tensions
Apr-09-2026

Indian equity benchmarks made a negative start on Thursday, tracking weak cues from Asian counterparts as renewed Middle East tensions dampened hopes that the Iran-U.S. ceasefire would lead to lasting peace. Despite the weak opening, both indices - Sensex and Nifty - attempted a modest recovery but then extended their losses, trading with around a one percent decline in early deals as investors resorted to profit booking following a massive rally in the previous session. Persistent foreign fund outflows further dented sentiment. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 2,811.97 crore on Wednesday. Traders took note of a report stating that the World Bank marginally raised India's growth projections for the 2026-27 fiscal year to 6.6%. It noted that although GST rate cuts would boost consumer demand in the initial months of the fiscal year, headwinds from the Middle East crisis could affect growth.

On the global front, all the Asian markets were trading in red as crude oil prices inched up after Iran accused the United States of breaching the terms of a two-week ceasefire agreed just a day earlier.

The BSE Sensex is currently trading at 76829.83, down by 733.07 points or 0.95% after trading in a range of 76774.81 and 77429.33. There were 7 stocks advancing against 23 stocks declining on the index.

The top gaining sectoral indices on the BSE were Metal up by 0.88%, Utilities up by 0.30%, Power up by 0.25%, Capital Goods up by 0.25% and Healthcare up by 0.22%, while Realty down by 1.69%, IT down by 1.06%, Consumer Discretionary down by 0.99%, Auto down by 0.97% and TECK down by 0.94% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.24%, Power Grid up by 1.15%, Bharat Electronics up by 0.96%, Tata Steel up by 0.71% and Sun Pharma up by 0.50%. On the flip side, Eternal down by 2.55%, Interglobe Aviation down by 2.16%, Larsen & Toubro down by 2.00%, Infosys down by 1.96% and Mahindra & Mahindra down by 1.83% were the top losers.

Meanwhile, the World Bank, in its South Asia Economic Update April 2026 report, has marginally raised India's growth projections for the fiscal year 2026-27 (FY27) by 30 basis points to 6.6% compared to its October 2025 forecast of 6.3%. It said although Goods and Services Tax (GST) rate cuts would boost consumer demands in the initial months of the fiscal, but headwinds from the Middle-East crisis could dent growth. The World Bank’s FY27 projection is lower than 6.9% estimated by the Reserve Bank of India (RBI), while it is higher compared to 6.1% by the OECD and 6% by Moody's Ratings. 

As per the report, India's growth is estimated to have accelerated from 7.1% in FY25 to 7.6% in FY26, owing to strong domestic demand and export resilience. Private consumption growth is particularly robust, supported by low inflation and rationalisation of the GST. It added that although the reduction in GST rates should continue to support consumer demand in the first half of FY27, elevated global energy prices are likely to put upward pressure on prices and constrain households' disposable income. 

It noted that government consumption growth is expected to soften to onset higher subsidy outlays for cooking fuel and fertilisers. Investment growth is likely to moderate amid elevated uncertainty and rising input costs. It further said improved access to the United States and the European Union (EU) for India's exports will be undermined by slower growth in major trading partners.

The CNX Nifty is currently trading at 23805.05, down by 192.30 points or 0.80% after trading in a range of 23794.95 and 23990.75. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.72%, NTPC up by 1.36%, Max Healthcare up by 1.21%, Dr. Reddy's Lab up by 1.16% and Power Grid up by 1.14%. On the flip side, Eternal down by 2.61%, Interglobe Aviation down by 2.16%, Infosys down by 2.00%, Mahindra & Mahindra down by 1.93% and Larsen & Toubro down by 1.92% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 441.42 points or 0.78% to 55,867.00, KOSPI lost 96.50 points or 1.64% to 5,775.84, Hang Seng declined 52.02 points or 0.2% to 25,841.00, Shanghai Composite weakened 29.3 points or 0.73% to 3,965.70, Taiwan Weighted fell 18.88 points or 0.05% to 34,742.50, Straits Times dropped 18.71 points or 0.37% to 4,977.34 and Jakarta Composite was down by 4.57 points or 0.06% to 7,274.64.
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