Indian equity markets continued to trade deep in red in late afternoon session. Traders remained concerned after research firm BMI, part of Fitch Solutions, said India's fiscal deficit is likely to breach the budgeted target for current fiscal and hit 4.5% of GDP as the government's policy response to the West Asia conflict could strain public finances. Further, investors took cautious approach after the foreign institutional investors sold securities worth Rs 1,918.99 crore in April 21, 2026. Besides, IT stocks faced significant selling pressure after a pessimistic FY27 growth guidance from HCL Technologies, which raised fears of sluggish demand in IT sector.

On the global front, Asian equity markets were trading mixed due to lingering uncertainty surrounding U.S.-Iran peace talks. European equity markets were trading higher after US President Donald Trump extended the ceasefire with Iran. 

The BSE Sensex is currently trading at 78668.89, down by 604.44 points or 0.76% after trading in a range of 78442.30 and 79031.03. There were 11 stocks advancing against 19 stocks declining on the index.

The top gaining sectoral indices on the BSE were Utilities up by 2.44%, Power up by 1.99%, Capital Goods up by 1.12%, FMCG up by 1.04% and Realty up by 0.95%, while IT down by 3.43%, TECK down by 2.77%, Auto down by 0.22%, Bankex down by 0.15% and Telecom down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.63%, NTPC up by 2.55%, Eternal up by 1.18%, Asian Paints up by 0.82% and Trent up by 0.70%. On the flip side, HCL Technologies down by 10.48%, Infosys down by 3.14%, TCS down by 2.47%, Mahindra & Mahindra down by 2.43% and Tech Mahindra down by 2.35% were the top losers.

Meanwhile, 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. It pointed that the engagement will be important as the refunded payments go only to US importers, and exporters have no legal right to claim them. Therefore, Indian exporters must negotiate with US buyers to take the benefit and seek a share of refunds where earlier prices included tariff costs.

In order to take benefit of these refunds, GTRI suggested that exporters can reopen contracts, add rebate-sharing clauses, ask for price revisions or credit notes, and use invoices and tariff data to show how costs were absorbed. Further, it noted that exporters with stronger bargaining power, especially in textiles and engineering goods, may secure better terms in future orders. Besides, it highlighted that out of total refunds worth around $166 billion, refunds worth about $12 billion are linked to India. Out of these, textiles and apparel may account for about $4 billion, engineering goods another $4 billion, and chemicals about $2 billion, with smaller shares from other sectors.

In April 2025, the US imposed reciprocal tariff on its trading partners with tariffs starting at 10%. Further, it raised the tariffs on India to 25% by August 7, 2025 and to 50% by August 28, which remained at that level until early February 2026. On February 20, the US Supreme Court ruling invalidated the entire framework of Trump tariffs, making the tariffs legally void and triggering refunds. Further, to get the refunds, US importers must file detailed claims online with shipment data, tariff lines and proof of payment.

The CNX Nifty is currently trading at 24412.10, down by 164.50 points or 0.67% after trading in a range of 24352.90 and 24515.95. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Tata Consumer Products up by 3.28%, NTPC up by 2.56%, Hindustan Unilever up by 2.35%, Jio Financial Services up by 1.85% and Hindalco up by 1.83%. On the flip side, HCL Technologies down by 10.47%, Infosys down by 3.19%, Mahindra & Mahindra down by 2.45%, TCS down by 2.45% and Tech Mahindra down by 2.33% were the top losers.

Asian equity markets were trading mixed; Nikkei 225 surged 176.83 points or 0.3% to 59,526.00, Taiwan Weighted added 273.36 points or 0.72% to 37,878.47, KOSPI increased 29.46 points or 0.46% to 6,417.93 and Shanghai Composite strengthened 21.18 points or 0.52% to 4,106.26, while Hang Seng declined 237.48 points or 0.9% to 26,250.00, Straits Times fell 21.91 points or 0.44% to 4,993.05 and Jakarta Composite plunged 9.39 points or 0.12% to 7,549.99.

European equity markets were trading higher; UK’s FTSE 100 increased 11.1 points or 0.11% to 10,509.19, France’s CAC rose 4.48 points or 0.05% to 8,240.20 and Germany’s DAX gained 44.33 points or 0.18% to 24,315.20.