Indian equity benchmarks gave up most of their intra-day gains and ended marginally higher on Tuesday due to the emergence of profit-taking as investors turned cautious amid reports of a ceasefire violation between Iran and Israel. In the morning trade, markets bounced back sharply, mirroring a rally in global peers and a steep decline in crude oil prices amid hopes of a potential de-escalation in the Middle East conflict. 

Some of the important factors in today’s trade:

FIIs turn net sellers: Foreign Institutional Investors (FIIs) were net sellers in Indian equities after a day of their strong buying. FPIs sold Rs 1,874 crore on June 23, 2025 in the cash segment of the market, as per provisional data published on the exchange.  

India's outward FDI falls 8.45% in May: The Reserve Bank of India (RBI) in its latest data report has showed that India’s outward foreign direct investment (OFDI) commitments declined 8.45% to $2,830.35 million in May 2025, from $3,091.56 million in May 2024. On the sequentially basis, the fall was steeper, from $5,981.86 million in April 2025.

Israel-Iran conflict may impact India’s exports in Gulf region for short-term: Amidst ongoing Israel-Iran conflict, the Federation of Indian Export Organisations (FIEO) has indicated that the conflict could impact demand and logistics in the short term, especially in the Gulf region which serves as a crucial hub for Indian exports. 

Govt holds extensive stakeholder consultations on FTAs to safeguard industry interests: Commerce and Industry Minister Piyush Goyal has said the government holds extensive stakeholder consultations on the free trade agreements (FTAs) and is pursuing these pacts while keeping in mind the interests of the domestic industry.

Favourable global cues: European markets were trading higher as a sharp decrease in oil prices following a ceasefire declaration between Iran and Israel by former U.S. President Donald helped ease concerns surrounding the outlook for inflation and interest rates. Asian markets settled mostly higher after U.S. President Donald Trump said a ceasefire agreed between Israel and Iran is now in effect. 

Finally, the BSE Sensex rose 158.32 points or 0.19% to 82,055.11 and the CNX Nifty was up by 72.45 points or 0.29% to 25,044.35.  

The BSE Sensex touched high and low of 83,018.16 and 81,900.12 respectively. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.54%, while Small cap index was up by 0.71%.

The top gaining sectoral indices on the BSE were Telecom up by 1.13%, Basic Materials up by 1.12%, Metal up by 0.96%, Bankex up by 0.72% and Auto up by 0.62%, while Energy down by 0.18%, Oil & Gas down by 0.17%, IT down by 0.11%, TECK down by 0.07% and PSU down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 2.58%, Tata Steel up by 1.54%, Kotak Mahindra Bank up by 1.46%, Ultratech Cement up by 1.16% and Bajaj Finserv up by 0.82%. On the flip side, Power Grid Corporation down by 1.52%, Trent down by 0.97%, NTPC down by 0.93%, Maruti Suzuki down by 0.72% and HCL Technologies down by 0.69% were the top losers.

Meanwhile, S&P Global Ratings has raised India's Gross Domestic Product (GDP) forecast to 6.5 per cent for current fiscal (FY26) assuming a normal monsoon, lower crude oil prices, income-tax concessions and monetary easing. S&P's growth estimates for India is in line with the projections made by central bank RBI earlier this month at 6.5 per cent. Earlier, S&P had lowered India's FY26 growth estimates by 20 basis points to 6.3 per cent citing global uncertainties and US tariff shocks.

S&P also flagged rising risks to the global economy due to the turbulence in the Middle East saying long-lasting major increases in oil prices could have significant economic impact in Asia-Pacific, notably via slower global growth and pressure on the current accounts of net energy importers, prices and costs. However, S&P said current conditions on global energy markets--which are well-supplied-- make such long-term impact on oil prices unlikely. India is 90 per cent dependent on imports to meet its crude oil needs and buys roughly half of its natural gas from overseas. 

In its Asia Pacific Economic Outlook, S&P said domestic demand resilience is particularly relevant in limiting the economic slowdown in economies less exposed to goods exports such as India. S&P said it expects the increase in US import tariffs and the uncertainty about them to harm trade, investment and growth globally. It added that the crisis in the Middle East has escalated over the last 12 days with US military strikes on Iran's three most critical nuclear facilities. US joined the war against Iran after Israeli strikes and counterstrikes by Iran. 

The CNX Nifty traded in a range of 25,317.70 and 24,999.70. There were 36 stocks advancing against 13 stocks declining, while 1 stock remained unchanged on the index.  

The top gainers on Nifty were Adani Ports & SEZ up by 2.89%, JIO Financial Services up by 2.85%, Shriram Finance up by 2.09%, Grasim Industries up by 2.06% and Tata Steel up by 1.71%. On the flip side, ONGC down by 2.90%, Power Grid Corporation down by 1.43%, Indusind Bank down by 1.01%, Trent down by 0.80%, and HCL Technologies down by 0.72% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 24.09 points or 0.28% to 8,782.13, France’s CAC rose 87.23 points or 1.16% to 7,624.80 and Germany’s DAX gained 424.69 points or 1.83% to 23,693.70.

Asian markets settled mostly higher on Tuesday tracking Wall Street’s gains overnight as Crude oil prices slumped and Federal Reserve Vice Chair Michelle Bowman said she favored a rate cut as soon as July if inflationary pressures remain contained. Market sentiments improved further after US President Donald Trump said a ceasefire agreed between Israel and Iran is now in effect. Hong Kong index soared, with technology and EV shares leading the surge. Moreover, Japanese shares rose sharply, even as a stronger yen weighed on exporters’ overseas profits.