Snapping a three-day gaining streak, Indian equity benchmarks traded with a negative bias throughout the session and ended around a per cent lower on Wednesday, due to heavy selling in IT, TECK and Auto stocks and an uptick in crude oil prices. Foreign fund outflows and fears of prolonged instability in West Asia also dented market sentiments. 

Some of the important factors in trade: 

India's fiscal deficit may exceed budgeted target for FY27: Research firm BMI has said that India's fiscal deficit may exceed the budgeted target for FY27 and potentially hit 4.5 per cent of Gross Domestic Product (GDP) as the government's policy response to the ongoing West Asia conflict could put pressure on public finances. 

Indian exporters should engage with US importers to take benefit of US tariff refunds: With US initiating the process of refunding reciprocal tariffs starting April 20, the think tank Global Trade Research Initiative (GTRI) has suggested that Indian exporters should proactively engage with American buyers to seek a share of the refunded duties. 

Govt extends interest subvention to small exporters in iron, steel sector: Amid global uncertainties affecting Indian exporters, the government has extended interest subvention benefits to micro and small enterprises involved in the export of 167 specific categories of iron and steel products, aiming to support the trading community. 

Textile sector’s stocks remain in watch: The textile ministry said India's textile exports, including those of handicrafts, increased by 2.1 per cent to Rs 3.16 lakh crore in the financial year ended March 2026 from Rs 3.09 lakh crore a year ago.  

Global front: European markets were trading lower after U.S.-Iran peace talks stalled, and U.S. President Donald Trump announced a unilateral extension of the ceasefire amid renewed conflict in the Strait of Hormuz. Asian markets settled mixed due to lingering uncertainty surrounding U.S.-Iran peace talks. 

Finally, the BSE Sensex fell 756.84 points or 0.95% to 78,516.49 and the CNX Nifty was down by 198.50 points or 0.81% to 24,378.10.   

The BSE Sensex touched high and low of 79,031.03 and 78,442.30, respectively. There were 11 stocks advancing against 19 stocks declining on the index.  

The top gaining sectoral indices on the BSE were Utilities up by 2.48%, Power up by 1.97%, Capital Goods up by 1.11%, FMCG up by 0.98% and Industrials up by 0.81%, while IT down by 3.66%, TECK down by 3.01%, Auto down by 0.59%, Bankex down by 0.39% and Telecom down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.75%, NTPC up by 2.39%, Eternal up by 1.39%, Ultratech Cement up by 1.35% and Trent up by 0.96%. On the flip side, HCL Technologies down by 10.85%, Infosys down by 3.40%, Mahindra & Mahindra down by 2.99%, TCS down by 2.80% and Tech Mahindra down by 2.50% were the top losers.

Meanwhile, research firm BMI, a Fitch Solution unit, has said that India's fiscal deficit, the gap between revenue and expenditure, may exceed the budgeted target for current fiscal (FY27) and potentially hit 4.5 per cent of Gross Domestic Product (GDP) as the government's policy response to the ongoing West Asia conflict could put pressure on public finances. It said the Union Budget 2026-27 had projected a fiscal deficit at 4.3 per cent of GDP, lower than the revised estimate of 4.4 per cent of GDP in 2025-26.   

BMI expects the government to introduce policies to redirect critical inputs to key industries, restrain business costs and improve financial support for firms. It also expects the government to consider restrictions on exports of scarce inputs such as helium and sulphur -- used in the manufacturing of semiconductor chips. It said since sulphur is a key ingredient in fertiliser production, the government will strive to minimise disruptions to the agriculture sector, which provides employment to about 43 per cent of the total population of the country.

It further said the government will seek to restrain cost increases for businesses affected by Strait of Hormuz's closure. It said to this end, the government has proposed a Rs 1 lakh crore Economic Stabilisation Fund to bolster India's response to global challenges. BMI estimates this will contribute 0.1 per cent of GDP to fiscal expenditure in 2026-27. It also said the government's past fiscal consolidation efforts reduced expenditure on energy and fertiliser subsidies to around 1.5 per cent of India's GDP in recent years. Given the importance of energy and fertilisers to India's economy, it expects this subsidy amount to rise in FY27.

CNX Nifty touched high and low of 24,515.95 and 24,352.90, respectively. There were 18 stocks advancing against 32 stocks declining on the index.      

The top gainers on Nifty were Tata Consumer Product up by 3.33%, Hindustan Unilever up by 2.39%, NTPC up by 2.26%, Tata Motors Passenger up by 1.74% and Hindalco up by 1.65%. On the flip side, HCL Technologies down by 10.74%, Infosys down by 3.38%, Mahindra & Mahindra down by 3.00%, TCS down by 2.88% and Tech Mahindra down by 2.50% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 4.39 points or 0.04% to 10,493.70, France’s CAC fell 13.92 points or 0.17% to 8,221.80 and Germany’s DAX lost 56.67 points or 0.23% to 24,214.20.

Asian markets settled mixed on Wednesday tracking Wall Street’s overnight fall due to lingering uncertainty surrounding US-Iran peace talks. Although plans for a second round of negotiations collapsed, US President Donald Trump extended the two-week ceasefire with Iran. He clarified that the truce would remain in effect until Tehran submits a formal proposal or discussions are officially concluded, though he noted the US military will maintain its naval blockade of Iranian ports and coastal areas. Japanese shares ended at a record high, led by heavyweight technology stocks, as investors turned their attention to the Bank of Japan's policy decision next week, where it is expected to hold interest rates steady. Meanwhile, Japan’s exports increased for a seventh consecutive month due to strong demand from China and ASEAN economies. The exports rose 11.7% to in March 2026, a pick up from February’s 4.0% gain.