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Key gauges end lower amid renewed geopolitical tensions
Jun-29-2026

Indian equity benchmarks ended around half percent lower on Monday as renewed hostilities between the US and Iran and rising oil prices unnerved investors. Traders overlooked exchange data that showed Foreign Institutional Investors (FIIs) bought equities worth Rs 383.76 crore on Thursday. 

Some of the important factors in trade: 

Crisil sees limited profitability hit for India Inc as West Asia tensions ease: Crisil Ratings in its latest report has said that the profitability impact of the recent West Asia conflict on India Inc is expected to be far lower than initially projected if the US-Iran ceasefire remains intact and energy supplies continue to normalise. 

Major infra projects see cost overrun of Rs 5.4 lakh crore: A monthly government report for May 2026 showed infrastructure projects worth above Rs 150 crore each registered a cumulative cost overrun of around Rs 5.4 lakh crore.

India’s forex reserves rise to $672.59 billion: The RBI said India's forex reserves increased by $963 million to $672.59 billion during the week ended June 19. In the previous reporting week, the overall reserves had dropped by $9.98 billion to $671.62 billion.

ICRA raises FY27 loss estimate for Indian airlines to Rs 38,000 crore: Ratings agency ICRA in its latest report has sharply increased its estimate of net losses for Indian airlines to Rs 36,000-38,000 crore in the current fiscal (FY27), citing higher operating costs arising from the rupee's depreciation against the US dollar, elevated aviation turbine fuel (ATF) prices, and a likely increase in aircraft lease rentals as fleet expansion continues.   

Global front: European markets were trading mostly in red as uncertainty over the fragile ceasefire between the U.S. and Iran, concerns about interest rates amid higher oil prices rendered the mood cautious. Asian markets ended mostly higher even as investors kept taking profits on high-flying semiconductor and artificial intelligence-related stocks due to worries about potentially higher interest rates by the end of the year. 

Finally, the BSE Sensex fell 372.10 points or 0.48% to 76,728.37 and the CNX Nifty was down by 109.75 points or 0.46% to 23,946.25.

The BSE Sensex touched high and low of 77,252.78 and 76,621.75, respectively. There were 13 stocks advancing against 17 stocks declining on the index.  

The top gaining sectoral indices on the BSE were Healthcare up by 0.95%, Power up by 0.57%, Metal up by 0.52%, Utilities up by 0.08% and Capital Goods up by 0.04%, while Auto down by 2.11%, Oil & Gas down by 1.40%, IT down by 1.04%, Consumer Discretionary down by 0.91% and Energy down by 0.82% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 1.39%, Trent up by 1.34%, Bharat Electronics up by 1.34%, NTPC up by 1.09% and Power Grid up by 0.88%. On the flip side, Kotak Mahindra Bank down by 3.24%, Mahindra & Mahindra down by 2.79%, Maruti Suzuki India down by 2.12%, Interglobe Aviation down by 2.05% and Axis Bank down by 1.37% were the top losers.

Meanwhile, Crisil Ratings in its latest report has said that the profitability impact of the recent West Asia conflict on India Inc is expected to be far lower than initially projected if the US-Iran ceasefire remains intact and energy supplies continue to normalise. It now expects the conflict to shave around 100 basis points off India Inc's operating margins in fiscal 2027, compared with an earlier projection of 200 basis points under a prolonged conflict scenario involving disruptions to shipping through the Strait of Hormuz.

The improved outlook follows a sharp fall in crude oil prices after the reopening of the Strait of Hormuz under a fragile US-Iran memorandum of understanding. However, Crisil cautioned that geopolitical risks remain elevated and gas supplies may take longer to stabilise. It said under the revised scenario, only 10 sectors are expected to witness a meaningful decline in profitability, compared with 22 sectors under the agency's earlier stress-case assumptions, with no sector likely to face a severe hit to revenues or earnings. 

The report said sectors expected to remain under pressure include airlines, ceramics, flexible packaging, specialty chemicals, polyester textiles and diamond polishing due to higher input costs, weaker pricing power and supply-chain disruptions. Crisil assigned a moderately negative credit outlook to these six sectors, citing weaker profitability, higher working capital requirements and moderate balance-sheet strength.

It further added that lower crude prices, improving gas availability, continued government infrastructure spending and resilient domestic demand should support revenue growth across industries. It also said policy measures, including the government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, which provides an additional Rs 2.55 lakh crore in guaranteed credit, including Rs 5,000 crore for airlines, would help vulnerable MSMEs meet higher funding needs. 

CNX Nifty touched high and low of 24,120.00 and 23,924.55, respectively. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Max Healthcare up by 2.37%, Dr. Reddy's Labs. up by 2.26%, Coal India up by 1.72%, Eternal up by 1.57% and Bharat Electronics up by 1.55%. On the flip side, Kotak Mahindra Bank down by 2.93%, Mahindra & Mahindra down by 2.43%, Adani Enterprises down by 2.24%, Tata Motors Passenger Vehicles down by 2.10% and Interglobe Aviation down by 2.07% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 20.47 points or 0.19% to 10,487.55 and France’s CAC fell 21.87 points or 0.26% to 8,363.00, while Germany’s DAX gained 53.08 points or 0.22% to 24,724.30.

Asian markets ended mostly higher on Monday as investors kept a close watch on developments in the Middle East. After exchanging fire near the Strait of Hormuz over the weekend, United States and Iran have agreed to suspend further attacks ahead of peace talks scheduled for this week in Doha, Qatar. Chinese and Hong Kong shares surged following fresh liquidity support measures from the People's Bank of China (PBoC). The central bank introduced overnight reverse repo operations, offering 300 billion Chinese Yuan to financial institutions to improve short-term liquidity management and stabilize funding conditions in the interbank market. Separately, the PBoC injected 157.5 billion Chinese Yuan through seven-day reverse repos while keeping the borrowing cost unchanged at a record-low 1.4%. The measures underscored Beijing's commitment to an accommodative monetary stance and reinforced expectations of continued policy support for the economy. Meanwhile, investors remained cautious ahead of the US nonfarm payrolls report and the annual central banker confab in Sintra, Portugal, due this week. Besides, traders took profits on high-flying semiconductor and artificial intelligence-related stocks due to worries about potentially higher interest rates by the end of the year. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,073.90

46.64

1.16

Hang Seng

23,026.68

354.82

1.57

Jakarta Composite

5,820.79

-75.34

-1.28

KLSE Composite

1,665.91

-1.83

-0.11

Nikkei 225

69,468.11

107.23

0.15

Straits Times

5,208.75

17.02

0.33

KOSPI Composite

8,394.65

-16.56

-0.20

Taiwan Weighted

44,999.90

428.14

0.96
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