Benchmarks End Flat as Softer Oil Prices Offset Profit Booking

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

May 7, 2026 at 11:43 AM IST

Indian equities largely unchanged on Thursday as easing crude oil prices helped support sentiment, while profit booking in FMCG and IT stocks capped gains after the previous session’s sharp rally. The Nifty50 slipped marginally by 0.02% to 24,326.65, while the BSE Sensex declined 0.15% to 77,844.52.

Markets traded in a narrow range through the session as investors balanced hopes of a US-Iran agreement against near-term valuation concerns. Brent Crude prices fell below $99 per barrel after reports suggested progress toward an agreement to gradually reopen the Strait of Hormuz in exchange for easing the blockade. Lower oil prices continued to improve India’s inflation and external balance outlook.

Among index heavyweights, Hindustan Unilever, Tata Consultancy Services and Titan Company were the top laggards. Broader markets outperformed, with the Nifty MidCap and Nifty SmallCap indices rising 1.20% and 0.97%, respectively. Sectorally, auto stocks led gains, while consumer durable, IT and FMCG indices underperformed.

Top Movers of the Day

Britannia Industries gained 1.77% to ₹5,885.50 reporting resilient quarterly earnings, supported by stable margins and healthy demand across core categories.

BSE surged 3.35% to ₹3,981 on strong trading volumes and sustained momentum in derivatives and options activity.

Coforge extended gains by 0.28% to ₹1,284 following robust Q4FY26 results and positive management commentary on deal pipelines.

Larsen & Toubro gained around 0. 5% to ₹4,056 amid strong infrastructure sentiment and recent order wins.

Paytm gained 7.73% to ₹1,196 after the company reported its first-ever annual net profit of ₹5.52 billion in FY26.

Bharat Forge surged over 8% to a 52-week high of ₹2,026.6 after strong Q4FY26 earnings.

YES Bank extended gains for a fourth straight session, rising over 2.0% and marking its best weekly performance in more than two years.

Brigade Enterprises declined over 4% to ₹769.85 after reporting Q4FY26 results, making it one of the key laggards in the realty segment.

Arvind rallied over 14.9% to ₹ a 52-week high after announcing an acquisition update through its US subsidiary.

CarTrade Tech jumped over 7% to ₹1,925 after reporting a 54% YoY increase in Q4FY26 profit.

Emami remained in focus after announcing the acquisition of a 60.0% stake in IncNut Digital, parent company of skincare brands Skinkraft and Vedix, for ₹3.21 billion.

Futures & Options
Nifty May 2026 futures closed at 24,405, a premium of 78.35 points over the spot Nifty 50 close of 24,326.65, indicating stable positioning in the derivatives market despite a flat cash session. The Nifty 50 ended marginally lower by 4.30 points or 0.02%.

Volatility remained contained, with India VIX easing 0.34% to 16.62 as softer oil prices and hopes of easing geopolitical tensions supported market sentiment. In the F&O segment, HDFC Bank, Coal India and Bharat Forge were the most actively traded stock futures contracts. The May 2026 derivatives series will expire on 26 May 2026.

Bonds
India's government bond yields remained largely steady with an upward bias on Thursday after a strong rally in the previous session driven by hopes of a potential peace agreement in West Asia. The benchmark 6.48% 2035 government bond yield ended at 6.9328%, compared with 6.9219% on Wednesday.

Market participants turned cautious ahead of the ₹340 billion government bond auction scheduled for May 8, which will include a new 10-year security expected to establish a fresh benchmark coupon above 7.0%. Investors also continued to monitor movements in Brent Crude prices and geopolitical developments, as these remain key drivers of inflation expectations and bond market sentiment.

Forex
Indian rupee strengthened sharply on Thursday afternoon as falling crude oil prices improved sentiment toward emerging market currencies. The rupee appreciated as much as 0.5% during the session before closing at 94.25 against the US dollar, recovering strongly from its intraday low of 94.9025.

The rally was driven by a sharp decline in Brent Crude prices, which slipped below $100 per barrel amid reports that the US and Iran were nearing a temporary agreement to halt hostilities. Lower oil prices eased concerns around India’s inflation outlook, trade deficit and external balances.

Crypto
Crypto markets traded lower on Thursday as mixed geopolitical signals and cautious risk sentiment triggered broad-based selling across major altcoins. The global crypto market capitalisation declined 0.46% to around $2.68 trillion. Bitcoin remained relatively resilient, holding above the key $80,000 mark and trading near $80,893. In contrast, Ethereum fell 1.97% to around $2,324, while Dogecoin dropped 4.01% amid broader weakness in speculative assets.

US Stock Futures
US stock futures traded slightly higher on Thursday morning as investors balanced easing inflation concerns, stable bond yields and expectations of a potential US-Iran peace agreement. Futures linked to the S&P 500 rose around 0.1%, supported by softer oil prices and calmer Treasury markets.

Investor sentiment improved as hopes of a diplomatic breakthrough between Washington and Tehran pushed Brent Crude prices lower, easing concerns around inflation and input costs. Sectors sensitive to fuel prices and consumer spending, including airlines, transport and retail-focused stocks, remained in focus ahead of fresh US labour market data.

US Treasury Notes
Yields on US Treasury held near 4.33% on Thursday, retreating from recent multi-month highs as falling oil prices eased inflation fears and improved sentiment in the bond market. The decline in yields followed a sharp pullback in Brent Crude prices amid growing expectations of a potential US-Iran agreement. Lower energy prices reduced concerns that inflation pressures could intensify further, helping stabilise demand for government bonds.

The US Treasury also announced that upcoming auction sizes would remain unchanged to avoid adding pressure to the bond market, although short-term Treasury bill issuance is expected to increase. The move helped reassure investors after recent volatility linked to rising yields and geopolitical uncertainty.

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