Sensex Falls for Second Straight Session

India’s BSE Sensex fell about 0.4% to 74,080 on Thursday, marking a second straight day of losses as escalating US-Iran tensions lifted crude prices and weighed on global risk appetite. Investors are also awaiting the RBI’s policy decision later today, with rates expected to stay at 5.25%, while watching for signals of a hawkish shift amid inflation pressures and rupee weakness. India’s Q1 GDP data is also due later today and is forecast to show growth easing to 7.2% from 7.8% in the previous quarter. Meanwhile, reports that the government may remove capital gains tax on foreign investment in government bonds lifted expectations of FPI inflows, offering broader support to domestic asset sentiment and the rupee. Retail trade led sectoral losses, weighed down by a sharp 33% fall in Trent shares after the stock turned ex-bonus, which mechanically adjusted its price lower. Other notable laggards included IFCI (-1.5%), Infosys (-1.2%), National Aluminium (-3.5%), and Newgen (-4.7%).

India’s BSE Sensex fell about 0.4% to settle at 74,346.2 on Wednesday, reversing Tuesday's gains, amid uncertainty surrounding US-Iran negotiations, a fresh spike in crude oil prices, and continued foreign outflows. Rising hostilities have reignited fears that negotiations may take longer than expected or even break down, potentially prolonging energy disruptions. At the same time, caution prevailed ahead of the RBI's upcoming policy decision. On a brighter note, final PMI data showed India’s services sector growth accelerated to a six-month high in May, exceeding initial estimates. Tech stocks witnessed heavy profit-taking after a rally in the past few sessions. TCS led the losses, slipping 8.4%, followed by Tech Mahindra (-6.2%), HCL Tech (-5.3%) and Infosys (-3.8%). Other notable losers included ITC (-2.2%), Eternal (-1.5%) and L&T(-1.2%). On the upside, IndiGo outperformed, rising 1.6%, after India’s Cabinet approved a 100 billion rupee ($1.05 billion) fuel stabilisation fund.

The SENSEX Index dropped 304 points or 0.41 percent on Wednesday to close at 74346 points. Losses were led by Tata Consultancy (-8.25%), Tech Mahindra (-6.45%) and HCL Tech (-5.31%). Offsetting the fall, top gainers were Tata Motors (2.00%), ICICI Bank (1.37%) and Power Grid (1.01%).