Indian equity benchmarks erased their initial gains and closed marginally down in a volatile session on Thursday due to profit-taking in banking, Telecom and Oil & Gas shares after a recent sharp rally. Investors also remained cautious ahead of further clarity on upcoming negotiations between the US and Iran. However, a positive trend in global markets and fresh foreign fund inflows restricted further fall.    

Some of the important factors in trade:

India, UK FTA likely to come into force from May: Expressing optimism over India’s progress in global trade pacts, Commerce Secretary Rajesh Agrawal has said that India and the UK Free Trade agreement (FTA), signed in July 2025, is likely to come into force from May 2026.

India sees dip in merchandise exports in March: The commerce ministry in its latest data has showed that India’s merchandise exports slipped marginally by 7.44 per cent to $38.92 billion in March 2026 as compared to $42.05 billion in the same month last year, due to ongoing logistical disruptions arising from the West Asia crisis. 

Unemployment in India grows slightly to 5.1% in March: The government data has showed the unemployment rate among people aged 15 and above grew slightly to 5.1% in the month of March 2026 from 4.9% in February this year, owed to high unemployment in urban areas.  

India's trade to West Asia region fall sharply in March amid geopolitical tensions: Commerce Secretary Rajesh Agrawal has said that India's exports and imports to the West Asia region fell by over 50 per cent in March 2026 due to ongoing logistical disruptions triggered by the US-Israel attack on Iran. 

Global front: European markets were trading higher, while Asian markets settled mostly higher amid optimism that the upcoming talks between officials from Iran and the U.S. will result in a potential resolution to the Middle East conflict. According to reports, the warring nations are considering extending the ceasefire by two weeks in order to allow more time for talks. 

Finally, the BSE Sensex fell 122.56 points or 0.16% to 77,988.68 and the CNX Nifty was down by 34.55 points or 0.14% to 24,196.75.

The BSE Sensex touched high and low of 78,730.32 and 77,674.93, respectively. There were 14 stocks advancing against 16 stocks declining on the index.

The top gaining sectoral indices on the BSE were Metal up by 1.49%, Utilities up by 1.37%, Industrials up by 1.17%, Basic Materials up by 1.11% and Capital Goods up by 1.02%, while Bankex down by 0.32%, Telecom down by 0.27%, Oil & Gas down by 0.24%, Auto down by 0.22% and Energy down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 2.81%, Eternal up by 2.54%, Adani Ports &SEZ up by 2.30%, Bharat Electronics up by 1.81% and Infosys up by 1.05%. On the flip side, HDFC Bank down by 1.75%, Titan Company down by 1.45%, Mahindra & Mahindra down by 0.99%, Bharti Airtel down by 0.82% and Kotak Mahindra Bank down by 0.75% were the top losers.

Meanwhile, the commerce ministry in its latest data has showed that India’s merchandise exports slipped marginally by 7.44 per cent to $38.92 billion in March 2026 as compared to $42.05 billion in the same month last year, due to ongoing logistical disruptions arising from the West Asia crisis. Merchandise imports also decreased by 6.51 per cent to $59.59 billion in March 2026 from $63.74 billion recorded a year ago. As a result, trade deficit (difference between imports and exports) narrowed sharply to $20.67 billion in March 2026, down from $27.1 billion in February 2026 and $21.69 billion a year earlier.  

According to the data, merchandise exports during FY 2025-26 (April-March) were $441.78 billion as compared to $437.70 billion during FY 2024-25. Merchandise imports during FY 2025-26 were $ 774.98 billion as compared to $721.20 billion during FY 2024-25. Merchandise trade deficit during FY 2025-26 was $333.19 billion as compared to $283.50 billion during FY 2024-25.  

It further showed that non-petroleum and non-gems & jewellery exports in March 2026 were $31.69 billion compared to $34.25 billion in March 2025. Non-petroleum and non-gems & jewellery exports in FY 2025-26 were $359.67 billion, compared to $344.50 billion in FY 2024-25. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in March 2026 were $41.87 billion compared to $37.99 billion in March 2025. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in FY 2025-26 were $498.56 billion, compared to $454.59 billion in FY 2024-25.

CNX Nifty touched high and low of 24,400.95 and 24,102.80, respectively. There were 25 stocks advancing against 25 stocks declining on the index.     

The top gainers on Nifty were Adani Enterprises up by 3.06%, Hindalco up by 2.85%, Trent up by 2.77%, Eternal up by 2.53% and Adani Ports &SEZ up by 2.20%. On the flip side, HDFC Bank down by 1.96%, ONGC down by 1.65%, HDFC Life Insurance down by 1.55%, Titan Company down by 1.33% and Mahindra & Mahindra down by 1.12% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 52.2 points or 0.49% to 10,611.78, France’s CAC rose 51.53 points or 0.62% to 8,326.10 and Germany’s DAX gained 121.5 points or 0.5% to 24,188.20. 

Asian markets settled mostly higher on Thursday amid hopes a fresh round of peace talks between Iran and the United States, scheduled for this week, which will help resolve the ongoing conflict in the Middle East. Crude oil prices trading below the $100 per barrel fuelled by hopes of the Strait of Hormuz reopening, also boosted market sentiments. Chinese shares gained as China’s Q1 2026 economic growth reached 5%, surpassing expectations by accelerating from the previous 4.5% expansion. Moreover, solid corporate earnings on Wall Street, AI-driven sector momentum, and a weak yen have lifted Japanese shares.