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Markets trade marginally higher after negative start
Jun-18-2026

Indian equity benchmarks started the session in red on Thursday as weakness in information technology stocks offset the positive impact of sharply lower crude oil prices following the US-Iran peace agreement. The reports showed U.S. President Donald Trump and his Iranian counterpart remotely signed a memorandum of understanding to end their war. The preliminary agreement stands to end hostilities in the Middle East, and will also reopen the Strait of Hormuz. However, soon markets recovered the lost ground and entered into green terrain and were trading marginally higher in early deals on value buying at Healthcare, Utilities and Bankex counters. Traders took note of report that the Reserve Bank has temporarily withdrew interest rate ceiling on fresh Foreign Currency Non-Resident (Bank) deposits of 3-5 years' maturity till September 30, a move aimed at attracting foreign capital.

On the global front, Asian markets were trading mixed taking cues from weak closing of US markets as investors dumped stocks on expectations of a rate hike to contain inflation going ahead. The US Fed held the federal funds target range steady at 3.5 per cent and 3.7 per cent. Additionally, China’s crackdown on mainland investments in Hong Kong also pressured local stocks, given that it points to less capital flows from wealthy mainland investors. 

The BSE Sensex is currently trading at 77277.31, up by 121.69 points or 0.16% after trading in a range of 77044.39 and 77289.29. There were 18 stocks advancing against 12 stocks declining on the index.

The top gaining sectoral indices on the BSE were Healthcare up by 0.63%, Utilities up by 0.57%, Bankex up by 0.54%, Realty up by 0.52% and PSU up by 0.52%, while IT down by 1.18% and TECK down by 0.81% were the only losing indices on BSE.

The top gainers on the Sensex were Trent up by 1.80%, Bharat Electronics up by 1.56%, HDFC Bank up by 1.52%, NTPC up by 0.87% and Hindustan Unilever up by 0.41%. On the flip side, Infosys down by 2.35%, Tech Mahindra down by 1.33%, TCS down by 1.21%, HCL Technologies down by 1.12% and Kotak Mahindra Bank down by 0.43% were the top losers.

Meanwhile, with an aim to deepen economic ties and strengthen bilateral trade, the free trade agreement between India and the UK will formally enter into force on July 15, 2026, after resolving a steel issue. The move is likely to help double two-way commerce to $100 billion by 2030. The two countries will also implement the Agreement on Social Security or the Double Contribution Convention (DCC) on the same day. Under DCC, Indian companies operating in the UK would not have to make social security contributions for up to five years for employees they move from India to support their operations. The commerce ministry said the period of exemption under DCC has been increased from 3 years to 5 years, thereby marking a major gain for India’s temporary workers. It said that following the successful completion of internal procedures and ratifications by both governments, the agreements will formally enter into force on July 15, 2026.

Commerce and industry Minister Piyush Goyal said that the simultaneous enforcement of the Comprehensive Economic and Trade Agreement (CETA) and the DCC on July 15 will open up significant new opportunities for India’s exports. The trade pact will see 99 per cent of Indian exports enter the UK duty-free, while reducing tariffs on British products such as cars and whisky. He added that stringent exclusion lists are actively deployed to insulate sensitive agricultural and rural economies from import volatility. He added ‘Simultaneously, by exempting our professionals from double insurance contributions, we are protecting the financial interests of our talent pool. This dual breakthrough aggressively expands our global commercial footprint while fiercely guarding domestic sensitivities’. The minister is likely to visit London later this month (tentatively June 25-27).

After signing the deal, Britain’s steel safeguard measure became a sticking point in implementing the agreement. The two countries have successfully reached a landmark consensus to safeguard and promote bilateral steel trade. Under the pact, Indian exporters will benefit from the complete elimination of UK tariffs across several key sectors. Tariffs of up to 70 per cent on processed food products, up to 21.5 per cent on marine products, up to 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear products, up to 12 per cent on textiles and clothing, and up to 8 per cent on chemicals and pharmaceutical products will be reduced to zero.

The immediate duty-free access secured under CETA is expected to significantly enhance the competitiveness of Indian exports in the UK market, generate new opportunities for farmers, fishermen, workers, MSMEs and manufacturers, and strengthen India’s integration into global value chains. The UK has provided one of its most comprehensive services commitments ever, covering all major services sectors and 137 sub-sectors of export interest to India. Indian service providers in IT and IT-enabled services, financial services, professional services, healthcare, education, engineering, telecommunications and consultancy services will benefit from enhanced market access and greater regulatory certainty.

Besides, two-way commerce between India and the UK grew 8.62 per cent to $25.12 billion (exports: $13.44 billion; imports: $11.68 billion) in 2025-26, up from $23.13 billion in 2024-25. India reported a trade surplus of $1.76 billion in the last fiscal. The UK is the sixth largest investor in India. Britain’s foreign direct investment in India has increased to $1 billion in 2025-26, up from $795 million. Following fourteen intensive rounds of talks and discussions, negotiations for the CETA were concluded on May 6, 2025. The agreement was officially signed on July 24, 2025 in London.

The CNX Nifty is currently trading at 24135.15, up by 49.45 points or 0.21% after trading in a range of 24058.85 and 24139.10. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Max Healthcare up by 3.25%, Trent up by 1.88%, HDFC Bank up by 1.72%, Bharat Electronics up by 1.42% and HDFC Life Insurance up by 1.26%. On the flip side, Infosys down by 2.29%, Tech Mahindra down by 1.46%, TCS down by 1.22%, HCL Technologies down by 1.03% and Grasim Industries down by 0.92% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 1387.75 points or 1.95% to 71,290.00, Taiwan Weighted jumped 423.69 points or 0.92% to 46,301.08, KOSPI rose 162.28 points or 1.8% to 9,026.52 and Straits Times added 8.07 points or 0.16% to 5,184.53. On the other hand, Hang Seng declined 397.16 points or 1.66% to 23,915.00, Jakarta Composite fell 80.16 points or 1.31% to 6,140.58 and Shanghai Composite was down by 15.32 points or 0.37% to 4,092.76.
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