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Key gauges end lower amid weak global cues
Jun-23-2026

Indian equity benchmarks faced heavy selling pressure on Tuesday, dropping over 1 per cent, tracking a bearish trend in global markets along with weakness in Metal, IT and TECK stocks. Fresh foreign fund outflows also led to the weak trading in equities. 

Some of the important factors in trade: 

June sees softer growth in India’s private sector: The HSBC Flash India Manufacturing PMI eased from final reading of 55.0 in May to 54.5 in June, while HSBC Flash India Services PMI Business Activity Index also fell to 57.3 in June from May’s final reading of 59.8.

Adverse monsoon, geopolitical tensions may weigh on India’s growth, inflation outlook: An article titled State of the Economy published in the Reserve Bank of India’s (RBI’s) June Bulletin has stated that an adverse south-west monsoon could pose headwinds to the domestic growth and inflation outlook, even as the global economic landscape remains fragile. 

Eight key infrastructure sectors’ output growth slows to 7-month low of 0.5% in May: The Ministry of Commerce & Industry in its latest data has showed that eight key infrastructure sectors’ output growth slowed to a seven-month low of 0.5 per cent in May 2026 due to a fall in output of coal, crude oil and refinery products. 

RBI injects Rs 1.41 lakh crore liquidity via 7-Day VRR Auction: The Reserve Bank of India (RBI) has injected Rs 1,41,171 crore transient liquidity into the banking system through a seven-day variable rate repo (VRR) auction. The funds were infused at a cut-off and weighted average rate of 5.26 per cent.

Global front: European markets were trading lower amidst a tech-led plunge in Asian markets that spilled over from Wall Street. Asian markets settled mostly lower amidst renewed concerns over valuations in the technology sector and increasing skepticism over spending in AI infrastructure. 

Finally, the BSE Sensex fell 893.39 points or 1.16% to 76,200.68 and the CNX Nifty was down by 278.80 points or 1.16% to 23,824.10.

The BSE Sensex touched high and low of 77,194.83 and 76,082.51, respectively. There were 4 stocks advancing against 26 stocks declining on the index. 

The lone gaining sectoral index on the BSE was Healthcare up by 0.62%, while Metal down by 3.00%, IT down by 2.24%, TECK down by 1.95%, Basic Materials down by 1.90% and Telecom down by 1.88% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 0.83%, Axis Bank up by 0.28%, Sun Pharma up by 0.23% and Maruti Suzuki up by 0.07%. On the flip side, Infosys down by 3.36%, TCS down by 3.16%, Bharat Electronics down by 2.67%, Tata Steel down by 2.66% and Adani Ports &SEZ down by 2.42% were the top losers.

Meanwhile, Moody's Ratings has flagged risk of water shortage and sustained fiscal pressure due to India's fragmented water governance structure, highly subsidised pricing and slow reallocation among sectors. It noted that allocation frameworks, which govern how water supply is prioritised, priced and distributed across households, industry and agriculture, are becoming a more important determinant of economic resilience in water-stressed systems because they influence how shortages are absorbed and how quickly supply stress translates into fiscal pressure.

It pointed that the fragmented water management framework can result in more prolonged shortages, higher costs and greater industrial and public service disruptions, resulting in higher risk of sustained fiscal pressure, delayed adjustment and persistent credit strain. It added that water management and policies is largely controlled by individual state governments and pricing is highly subsidised (especially for agriculture, which consumes about 80% of the country's freshwater), reallocation among sectors is slow and many regions lack the resources to invest in necessary infrastructure

Moreover, Moody's highlighted that the governments and utilities will increasingly need to accommodate the water-intensive industrial pressure due to the rapidly growing demand from data centers, driven by the expansion of cloud computing and artificial intelligence. On credit exposure, it said that the country has high credit exposure to heat stress, flooding and monsoon variability, while its water management category has very high credit exposure, driven by ageing water infrastructure, excessive groundwater depletion.

CNX Nifty touched high and low of 24,135.50 and 23,784.95, respectively. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.36%, Power Grid Corporation up by 0.95%, Dr. Reddy's Labs. up by 0.79%, Asian Paints up by 0.41% and Sun Pharma up by 0.22%. On the flip side, Infosys down by 3.42%, Wipro down by 3.21%, TCS down by 3.19%, JSW Steel down by 3.10% and Adani Enterprises down by 3.10% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 51.79 points or 0.5% to 10,386.06, France’s CAC fell 51.41 points or 0.61% to 8,348.70 and Germany’s DAX lost 218.39 points or 0.87% to 24,921.30. 

Asian markets settled mostly lower on Tuesday, triggered by a global unwind of the artificial intelligence and technology rally coupled with hawkish US Federal Reserve interest rate expectations. Asian markets’ massive sell-off was also led by South Korea's Kospi index, which plunged nearly 10% and triggered multiple circuit breakers. Investors also looked ahead to key inflation data due to be released on Thursday and weighed the latest developments in the US-Iran war negotiations. US Vice President JD Vance said Tehran had agreed to admit nuclear monitors into the country. But Iran denied making any new commitments. US President Donald Trump said preventing Iran from having a nuclear weapon outweighs the potential economic consequences of a prolonged war.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,106.25

-56.85

-1.37

Hang Seng

23,336.28

-432.24

-1.82

Jakarta Composite

6,101.33

-15.36

-0.25

KLSE Composite

1,679.92

-20.92

-1.23

Nikkei 225

69,788.38

-2,565.58

-3.55

Straits Times

5,205.74

1.73

0.03

KOSPI Composite

8,203.84

-910.71

-9.99

Taiwan Weighted

47,100.65

-640.86

-1.34
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