FX.co ★ India Stocks Drop But Point to 3rd Straight Monthly Gains

In early Monday trading, Indian stocks dropped by 267 points or 0.3%, settling at 83,797, as investors opted to secure profits following the BSE Sensex reaching an unprecedented high on Friday. The index was primarily pressured by downturns in the automotive and financial services sectors, which saw declines of 0.3% and 0.4%, respectively. Contributing to the economic landscape, India's external debt soared to an all-time high of USD 736.3 billion in the March quarter, mainly due to an increase in non-governmental borrowings. Mitigating some of the losses, small-cap stocks experienced a 0.7% uptick, and mid-caps increased by 0.2%. Optimism surrounding trade talks in light of impending deadlines further helped curb declines, as reflected in gains in US stock futures. Notable decliners included Kotak Mahindra, down 1.5%, NTPC, which fell 1.1%, and Power Grid, decreasing by 1.0%. However, the index remains on a positive trajectory for the month, with a projected 2.9% increase—marking the third consecutive month of gains—bolstered by reduced tensions in the Middle East and advancing negotiations towards a trade deal between India and the United States.