Indian equity benchmarks ended lower on Tuesday as unresolved tensions in the West Asia and persistent disruptions to energy supply, particularly the continued closure of the Strait of Hormuz, weighed on investor sentiment. Surging oil prices and foreign fund outflows also unnerved investors. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,151.48 crore on Monday, according to exchange data.    

Some of the important factors in trade: 

India, New Zealand ink FTA to boost bilateral trade: With an aim to strengthen India’s global economic partnerships, India and New Zealand have inked a free trade agreement (FTA) at Bharat Mandapam, New Delhi. The FTA provides duty-free access for 100% of India's exports to New Zealand, covering all tariff lines or produce categories. 

Piyush Goyal discusses ways to boost shipments, enhance utilisation of FTAs: Post signing of India - New Zealand free trade pact, the Commerce and Industry Minister Piyush Goyal held discussions with exporters and representatives of industry associations on ways to boost the country's shipments and enhance utilisation of free trade agreements (FTAs). 

India’s DPI initiatives likely to contribute 4% of GDP by 2030: NITI Aayog in its report has said that India’s digital public infrastructure (DPI) initiatives are projected to contribute 4% of the Gross Domestic Product (GDP) by 2030, up from the current 1%. 

ICRA sees growth moderation for PV industry in FY27: Citing the impact of a high base and evolving macroeconomic headwinds, rating agency ICRA in its latest report has projected India's passenger vehicle (PV) industry growth to ease to 4-6% in FY2027 from 8.6% in FY2026, despite stable demand.

Global front: European markets were trading higher as investors braced for big tech earnings and the upcoming Federal Reserve decision. Asian markets ended mostly lower on Tuesday as U.S.-Iran talks remained at a standstill and investors braced for the earnings releases of the Magnificent Seven companies this week. 

Finally, the BSE Sensex fell 416.72 points or 0.54% to 76,886.91 and the CNX Nifty was down by 97.00 points or 0.40% to 23,995.70.      

The BSE Sensex touched high and low of 77,493.53 and 76,741.06, respectively. There were 11 stocks advancing against 19 stocks declining on the index.  

The top gaining sectoral indices on the BSE were Energy up by 1.75%, Telecom up by 1.52%, Oil & Gas up by 1.50%, Metal up by 0.49% and Capital Goods up by 0.43%, while Bankex down by 1.61%, Auto down by 0.98%, IT down by 0.78%, Consumer Discretionary down by 0.56% and Realty down by 0.55% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.68%, Bharti Airtel up by 1.43%, Tech Mahindra up by 0.95%, Sun Pharma up by 0.80% and Tata Steel up by 0.73%. On the flip side, Axis Bank down by 2.65%, HCL Technologies down by 2.64%, Interglobe Aviation down by 2.59%, Maruti Suzuki down by 2.53% and SBI down by 1.88% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India has not provided any duty concessions in the dairy sector under any of its free trade agreements so far, including agreements with the European Union, the UK, New Zealand, and Australia. He stated that India’s dairy industry is largely powered by small and marginal farmers who have limited land and only a few cattle. 

These farmers have a very low production and needs to be protected against large farms that Europe, America, Australia, or New Zealand have. He mentioned ‘India has had a very consistent stand in all our FTAs across the world, whether it is European Union, Switzerland... UK, USA, Australia, New Zealand. Never has India opened the dairy sector. Everybody in this room knows it. Everybody in the world knows it.’ 

However, he noted that under India’s foreign trade policy, the government allows foreign companies to bring raw materials or ingredients into India, process them to make high-quality products and then re-export 100 per cent of those goods. That product is not allowed to be sold in the country. He stated ‘So it doesn't hurt the Indian market, doesn't hurt the Indian farmers, but adds to our foreign exchange income, adds jobs to our youth, provides opportunities for our farmers also to possibly supplement for further re-export. So it's a win-win for both countries.’

CNX Nifty touched high and low of 24,181.80 and 23,957.05, respectively. There were 20 stocks advancing against 30 stocks declining on the index.      

The top gainers on Nifty were ONGC up by 5.63%, Adani Enterprises up by 4.01%, Coal India up by 3.29%, Reliance Industries up by 1.99% and Nestle up by 1.71%. On the flip side, Axis Bank down by 2.67%, Maruti Suzuki down by 2.51%, HCL Technologies down by 2.31%, Shriram Finance down by 2.27% and Interglobe Aviation down by 2.11% were the top losers.   

European markets were trading higher; UK’s FTSE 100 increased 50.79 points or 0.49% to 10,371.88, France’s CAC rose 31.68 points or 0.39% to 8,173.60 and Germany’s DAX gained 26.27 points or 0.11% to 24,109.80.

Asian markets ended mostly lower on Tuesday tracking Wall Street's mixed cues overnight and as International Brent crude prices remained elevated after reports suggested that US President Donald Trump is not satisfied with the Iranian proposal to reopen the Strait of Hormuz and end the two-month war in exchange of delaying nuclear talks. Japanese shares fell and the yen strengthened slightly after the Bank of Japan kept interest rates unchanged at 0.75% as expected. Meanwhile, investors were looking ahead to the Fed’s monetary policy meeting on Wednesday, during which outgoing Fed chair Jerome Powell is widely expected to keep interest rates on hold.