FX.co ★ Sensex Falls for Second Straight Session

India’s BSE Sensex slipped about 0.4% to 74,080 on Thursday, extending losses for a second consecutive session as rising US–Iran tensions pushed up crude oil prices and dampened global risk appetite. Investors are also focused on the Reserve Bank of India’s policy outcome later today, with the benchmark rate widely expected to be held at 5.25%. Markets will scrutinize the statement for any hawkish shift in tone amid persistent inflationary pressures and a weaker rupee.

Attention is likewise on India’s Q1 GDP release due later in the day, with consensus forecasts pointing to growth slowing to 7.2% from 7.8% in the prior quarter. On the policy side, reports that the government may scrap capital gains tax on foreign investments in government bonds have bolstered expectations of stronger FPI inflows, lending broader support to sentiment toward domestic assets and the rupee.

At the sector level, retail trade led the declines, dragged down by a steep 33% drop in Trent shares after the stock turned ex-bonus, resulting in a mechanical adjustment to its quoted price. Other notable laggards included IFCI (-1.5%), Infosys (-1.2%), National Aluminium (-3.5%), and Newgen (-4.7%).