Indian equity benchmarks recovered some losses and closed nearly a per cent lower on Monday as the failure of US-Iran negotiations heightened concerns of a prolonged conflict driving crude oil prices sharply higher. However, a gradual recovery in heavyweight stocks across sectors helped trim losses as the session progressed. 

Some of the important factors in trade: 

West Asia conflict can hit India's remittances flow: Crisil Ratings said the West Asia conflict may impact India's remittance flow, as one-third of the inflows from the diaspora come from Gulf Cooperation Council countries. 

India-UK free trade pact may come into force from second week of May: The report said the India-UK free trade agreement, signed in July last year, is likely to come into force from the second week of May.

Policy reforms fuel sharp rise of 30.2% in patent filings: Commerce and Industry Minister Piyush Goyal has said that India recorded a 30.2% jump in patent application filings to 1,43,729 in 2025-26 from 1,10,375 in the previous fiscal.  

Govt hikes windfall tax on diesel, ATF to safe-guard domestic supply amid West Asia war: With an aim of preventing exporters from taking undue advantage due to price differences, the government has hiked the export duty, or windfall tax, on diesel to Rs 55.5 per litre. It has also increased the export duty on aviation fuel Aviation Turbine Fuel (ATF) to Rs 42 a litre. 

Global front: European markets were trading lower, while Asian markets settled mostly lower amid renewed threats from U.S. President Donald Trump to block the Strait of Hormuz following the collapse of U.S.-Iran peace talks over the weekend. 

Finally, the BSE Sensex fell 702.68 points or 0.91% to 76,847.57 and the CNX Nifty was down by 207.95 points or 0.86% to 23,842.65.

The BSE Sensex touched high and low of 77,063.41 and 75,868.32, respectively. There were 3 stocks advancing against 27 stocks declining on the index.

The top gaining sectoral indices on the BSE were Utilities up by 1.37%, Power up by 0.89% and 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.

The top gainers on the Sensex were ICICI Bank up by 2.16%, NTPC up by 1.54% and Axis Bank up by 0.17%. On the flip side, Maruti Suzuki down by 4.61%, Bajaj Finance down by 2.80%, Interglobe Aviation down by 2.78%, Reliance Industries down by 2.64% and TCS down by 2.05% were the top losers.

Meanwhile, Crisil Ratings, in a note on the West Asia conflict, has said 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. A decline in remittances, driven by reduced incomes among overseas Indians, could adversely impact the current account deficit (CAD). The agency noted ‘A hit to their incomes can have implications for India’s CAD at a time when the trade deficit is already under pressure.’

India is the world’s largest recipient of remittances from its diaspora, receiving over $135 billion in FY25. Export growth is likely to face some headwinds due to disruptions in global trade flows caused by the West Asia conflict, along with slower global economic growth, although lower US tariffs are expected to provide some support. Under the base-case scenario, Crisil also anticipates a higher import bill, driven by an 8-9% year-on-year increase in crude oil prices. Meanwhile, exports to West Asia have been affected by logistical challenges and supply-chain realignments stemming from the conflict, though the overall impact is expected to be mixed.

India exported goods worth $57 billion to GCC countries - accounting for 13% of its total goods exports -and an additional $9 billion (2%) to other West Asian nations. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, while other West Asian countries comprise Iran, Iraq, Israel, Jordan, Lebanon, Syria, and Yemen. For certain products, the region holds significant importance, accounting for over 70% of India’s basmati rice exports, 30% of boneless bovine meat exports, 25% of ceramic products, 15% of petroleum products, and 20% of gems and jewellery exports. Exports to West Asia are currently being affected by logistical challenges and supply-chain realignments.

CNX Nifty touched high and low of 23,907.40 and 23,555.60, respectively. There were 10 stocks advancing against 39 stocks declining, while 1 stock remained unchanged on the index.     

The top gainers on Nifty were HDFC Life Insurance up by 2.71%, Adani Enterprises up by 2.08%, ICICI Bank up by 1.90%, NTPC up by 1.58% and Tata Motors Passenger up by 0.88%. On the flip side, Eicher Motors down by 5.04%, Maruti Suzuki down by 4.62%, Bajaj Finance down by 2.97%, Reliance Industries down by 2.68% and Interglobe Aviation down by 2.64% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 37.96 points or 0.36% to 10,562.57, France’s CAC fell 72.2 points or 0.87% to 8,187.40 and Germany’s DAX lost 220.45 points or 0.93% to 23,583.50. 

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.