Declining for the second day in a row, Indian equity benchmarks ended with losses of over two percent on Monday as the ongoing war in West Asia and surging crude oil prices kept investors' sentiment fragile. Weak trends in Asian markets and unabated foreign fund outflows also added to the bearish trend in domestic equities.

Some of the important factors in trade: 

Near-term outlook remains uncertain: The Finance Ministry said that the near-term outlook remains uncertain, with external shocks particularly the West Asia crisis posing downside risks to growth through elevated input costs and potential supply disruptions. 

Unemployment dips marginally to 3.1% in 2025: A government survey stated that the overall unemployment rate for persons aged 15 years and above in India declined marginally to 3.1 per cent in January to December 2025 from 3.2 per cent a year ago. 

Centre to borrow Rs 8.2 lakh crore in H1 FY27: The finance ministry has said that the Centre is planning to mobilise Rs 8.20 lakh crore through issuance of dated securities, including Rs 15,000 crore of Sovereign Green Bonds during the April-September period of 2026-27. 

Piyush Goyal to visit Canada for trade talks: Commerce and Industry Minister Piyush Goyal will visit Canada in May amid ongoing negotiations for a free trade agreement between the two countries. 

Global front: European markets were trading higher even as the mood remained a bit cautious amid concerns about the potential economic impact of the ongoing U.S.-Israeli war on Iran. Asian markets ended mostly down on Monday as rising energy risks amid escalating U.S.-Iran tensions rattled investors. 

Finally, the BSE Sensex fell 1635.67 points or 2.22% to 71,947.55 and the CNX Nifty was down by 488.20 points or 2.14% to 22,331.40. 

The BSE Sensex touched high and low of 73,165.32 and 71,774.13, respectively. There were 2 stocks advancing against 28 stocks declining on the index.

The top losing sectoral indices on the BSE were Bankex down by 3.80%, Telecom down by 3.09%, Realty down by 3.03%, Industrials down by 2.64% and Consumer Discretionary down by 2.36%, while there was no gaining sectoral index on the BSE. 

The few gainers on the Sensex were Tech Mahindra up by 1.65% and Power Grid Corporation up by 0.27%. On the flip side, Bajaj Finance down by 5.09%, SBI down by 3.95%, Interglobe Aviation down by 3.80%, Bajaj Finserv down by 3.71% and Axis Bank down by 3.59% were the top losers.

Meanwhile, the industry body -- Confederation of Indian Industry (CII) has praised the government for its response to disruptions caused by West Asia crisis, and said it is timely, measured and reassuring. It reflects a whole of government approach that has focused on keeping supply chains functional, supporting exporters, protecting households and maintaining macroeconomic stability. Besides, CII pointed that while the policy response has mitigated immediate risks, the evolving situation requires continued coordination between the government and industry. It added that that the present situation represents a supply side disruption, with pressures transmitted through energy costs, logistics and working capital cycles.

In order to mitigate these disruptions and complement the governments, the industry body has come out with a 12-point agenda for India Inc. The 12-point agenda include -- collaboration between industry and government in building strategic reserves and buffer mechanisms for critical raw materials, fuels and intermediate goods; maintaining price stability by ensuring that the benefits of stable fuel prices and moderated logistics costs are transmitted to end consumers and downstream partners; strengthening the supply chain resilience by identifying alternative sourcing corridors; accelerating investments in energy transition, including renewables, green hydrogen and industrial energy efficiency; switching from LPG to natural gas and other efficient energy options; adoption of innovative approaches to reduce fuel intensity; prioritising the protection of employment and livelihoods by using internal efficiencies and cost management. 

The agenda also includes support from larger firms to MSME partners through faster payments, better credit terms and improved order visibility; enhancing energy efficiency and operational optimisation across processes; investing in technology and data systems that improve supply chain visibility and operational flexibility; and reviewing procurement and contracting practices to build greater flexibility in sourcing, pricing and delivery timelines. Meanwhile, CII has emphasized that the strong enabling framework created by the government and said the industry can complement this by ensuring continuity, supporting smaller enterprises and maintaining confidence across the economy. It added that such a coordinated approach will help India navigate the present situation while strengthening long-term resilience.

CNX Nifty touched high and low of 22,714.10 and 22,283.85, respectively. There were 6 stocks advancing against 44 stocks declining on the index.   

The top gainers on Nifty were Hindalco up by 2.46%, Tech Mahindra up by 1.66%, Coal India up by 1.13%, ONGC up by 1.05% and Power Grid Corporation up by 0.10%. On the flip side, Bajaj Finance down by 4.95%, Shriram Finance down by 3.82%, SBI down by 3.80%, Interglobe Aviation down by 3.65% and Kotak Mahindra Bank down by 3.59% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 87.75 points or 0.87% to 10,055.10, France’s CAC rose 29.35 points or 0.38% to 7,731.30 and Germany’s DAX gained 74.15 points or 0.33% to 22,374.90. 

Asian markets ended mostly down on Monday amid rising energy risks as the Middle East conflict entered its fifth week with no clear resolution in sight. Investors were reacting to the entry of Yemen's Houthi movement into the regional war following missile and drone strikes on Israel over the weekend. Japanese shares slipped, tracking Wall Streets’ fall last Friday. At the March meeting the Bank of Japan (BOJ) kept its short-term interest rate steady at 0.75% as widely expected by markets, but the central bank maintained a hawkish bias, warning that surging oil prices driven by the Middle East conflict could exacerbate ⁠inflationary pressure.