India Stocks Drop But Point to 3rd Straight Monthly Gains

Stocks in India fell by 267 points, or 0.3%, to 83,797 in early trade on Monday, erasing solid gains from the prior session, as traders engaged in profit-taking after the BSE Sensex hit a record high on Friday. The auto and financial services sectors were the main drags on the index, declining 0.3% and 0.4%, respectively. On the data front, India’s external debt reached a record high of USD 736.3 billion in the March quarter, primarily driven by an increase in non-government debt. Capping the losses, small-cap stocks climbed 0.7%, while mid-caps rose 0.2%. Gains in US stock futures also helped limit the decline, amid optimism over trade negotiations ahead of key deadlines. Among the biggest laggards were Kotak Mahindra (-1.5%), NTPC (-1.1%), and Power Grid (-1.0%). For the month, the index is on track for a 2.9% surge—its third consecutive monthly gain—supported by easing tensions in the Middle East and progress toward a potential trade deal between India and the US.