Indian equity benchmarks ended lower on Monday ahead of India's retail inflation data, due to be released later in the day. Markets made a gap-down opening amid rising geopolitical tensions following the lack of progress in US-Iran peace talks. In afternoon noon session, indices recovered from the day’s low points supported by foreign fund inflows. On April 10, foreign institutional investors (FIIs) had purchased securities worth Rs 672.09 crore. However, markets failed to recover fully and ultimately ended lower.

Some of the important factors in trade:

Crisil flags remittance risks to India amid ongoing tensions in West Asia: Traders remained cautious as Crisil Ratings stated that the ongoing tensions in West Asia likely to affect India’s remittance inflows, as nearly one-third of these funds come from the diaspora in Gulf Cooperation Council (GCC) countries.

Centre raises export duties on diesel, aviation turbine fuel: Traders were cautious as the government increased the export duty, or windfall tax, on diesel to Rs 55.5 per litre and on aviation fuel ATF to Rs 42 a litre. The duty hikes would be applicable with immediate effect. 

India’s forex reserves jump by $9 billion to $697.12 billion: Traders overlooked the Reserve Bank of India’s (RBI) statement that India's forex reserves jumped by $9.063 billion to $697.121 billion for the week ended April 3, 2026.

On the global front: European markets were trading in red, while Asian markets ended mostly lower after peace talks between the United States and Iran failed to yield an agreement. Adding to investors’ concerns, the U.S. Navy moved to block maritime traffic to and from Iran through the Strait of Hormuz.

The BSE Sensex ended at 76847.57, down by 702.68 points or 0.91% after trading in a range of 75868.32 and 77063.41. There were 3 stocks advancing against 27 stocks declining on the index. (Provisional)

The few gaining sectoral indices on the BSE were Utilities up by 1.37%, Power up by 0.89%, Telecom up by 0.38%, while Auto down by 2.10%, Energy down by 1.34%, Oil & Gas down by 1.25%, FMCG down by 1.22% and Consumer Discretionary down by 1.21% were the top losing indices on BSE. (Provisional)

The few gainers on the Sensex were ICICI Bank up by 2.04%, NTPC up by 1.46% and Axis Bank up by 0.15%. On the flip side, Maruti Suzuki down by 4.60%, Interglobe Aviation down by 2.85%, Bajaj Finance down by 2.83%, Reliance Industries down by 2.64% and HDFC Bank down by 2.15% were the top losers. (Provisional)

Meanwhile, the India-UK free trade agreement, finalized in July last year, is reportedly expected to take effect from the second week of May. On July 24, 2025, India and the UK entered into the Comprehensive Economic and Trade Agreement (CETA), under which 99 percent of Indian exports will enter the British market at zero duty, while tariffs on British products, such as cars and whisky, will be reduced in India.

The two countries have also signed the Double Contributions Convention (DCC) pact to ensure temporary workers would not have to duplicate social levies in either country. Both pacts are likely to be implemented in parallel. CETA aims to double the $56 billion trade between the two economies by 2030.

While India has opened its market to various consumer goods, like chocolates, biscuits, and cosmetics, it will gain greater access to export products, such as textiles, footwear, gems and jewellery, sports goods, and toys. Under the agreement, tariffs on Scotch whisky will drop from 150% to 75% immediately, and then decrease further to 40% by 2035.On automobiles, India will reduce import duties from as high as 110% to 10% over five years under a gradually liberalised quota system. In return, Indian manufacturers will be granted access to the UK market for electric and hybrid vehicles within a quota framework. 

The CNX Nifty ended at 23842.65, down by 207.95 points or 0.86% after trading in a range of 23555.60 and 23907.40. There were 10 stocks advancing against 39 stocks declining on the index, while one stocks remained unchanged. (Provisional)

The top gainers on Nifty were HDFC Life Insurance up by 2.87%, ICICI Bank up by 2.10%, Adani Enterprises up by 2.08%, NTPC up by 1.60% and Tata Motors Passenger up by 0.99%. On the flip side, Eicher Motors down by 5.04%, Maruti Suzuki down by 4.62%, Bajaj Finance down by 2.93%, Interglobe Aviation down by 2.79% and Reliance Industries down by 2.60% were the top losers. (Provisional)

European markets were trading lower; Germany’s DAX lost 220.45 points or 0.93% to 23,583.50, France’s CAC fell 69.7 points or 0.84% to 8,189.90 and UK’s FTSE 100 decreased 42.01 points or 0.4% to 10,558.52.

Asian markets settled mostly lower on Monday due to heightened geopolitical tensions in the Middle East after weekend negotiations in Islamabad between the United States and Iran aimed at ending six weeks of war concluded without an agreement. Meanwhile, US President Donald Trump’s announcement of US naval blockade on Iranian ports has forced Brent crude prices to surge, leaving investors cautious. The US President also warned that countries, including China, could face tariffs of up to 50% if they provide military support to Iran, though Beijing denied any involvement. Japanese shares declined, tracking mixed cues from Wall Street and surging oil prices, while a stronger yen also contributed to the downward pressure.