Equities Extend Decline as Renewed US-Iran Tensions Dents Sentiment

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

India stocks fall, rupee fall

By Dehuti Jani

May 8, 2026 at 11:44 AM IST

Indian equities ended lower for the second consecutive session on Friday as renewed geopolitical tensions between the US and Iran weighed on investor sentiment and triggered selling across banking, financial and energy-linked stocks. The Nifty50 declined 0.62% or 150.50 points to 24,176.15, while the BSE Sensex fell 0.66% or 516.33 points to 77,328.19.

Market sentiment weakened after hopes of a near-term resolution to the West Asia conflict faded, pushing Brent Crude prices higher. Brent crude rose 0.72% to $100.78 per barrel, renewing concerns around inflation, external balances and corporate earnings for oil-importing economies such as India.

Banking, financial services, oil & gas, realty and metal stocks led the decline, with PSU banks and private banks emerging as the weakest sectors. In contrast, IT, chemicals and healthcare stocks displayed relative resilience amid selective defensive buying. Titan Company, Apollo Hospitals and Asian Paints were the top gainers on the Nifty50 index.

Broader markets outperformed the benchmarks despite volatility, with the Nifty SmallCap index rising 0.22%, while the Nifty MidCap index slipped 0.15% after touching a fresh record high during the session.

Top Movers of the Day

SBI fell over 5.0% after reporting a decline in Q4FY26 net profit, weighing on PSU banking sentiment. SBI reported Q4FY26 net profit of ₹196.84 billion and announcing a dividend of ₹17.35 per share, though the stock came under pressure as results missed Street expectations on margins and NII growth.

Titan Company surged 4.86% to ₹4,517 after reporting strong Q4FY26 earnings, with net profit rising nearly 29% YoY and revenue jumping 78% YoY. The company also declared a dividend of ₹15 per share.

Dabur India gained around 3.6% to ₹487 after posting strong March-quarter earnings, supported by healthy growth in its India FMCG business.

Thermax rallied nearly 12% to ₹4,707 after reporting a 19% rise in Q4 profit and improved order book visibility.

Firstsource Solutions and Nuvama Wealth Management were among the strong mid-cap gainers, rallying sharply alongside broader market momentum.

Vikram Solar declined around 5% to ₹214 after margin pressures overshadowed a 21% YoY rise in Q4 net profit.

Britannia Industries traded weak 5.13% to ₹5,516 after quarterly results and concerns over possible price hikes weighed on sentiment.

OnEMI Technology Solutions made a strong market debut, with shares listing at ₹191 on the BSE, nearly 12.0% above the IPO price of ₹171.

Axis Bank declined around 2.0% to ₹1,267.25 amid weakness in banking stocks.

Intellect Design Arena remained under pressure after reporting a 14.4% YoY decline in Q4FY26 consolidated net profit but at the end of trade rose 2.79% to ₹804.

Sonata Software extended gains for a third straight session, surging nearly 9.5% to ₹296 after its March-quarter results.

Pidilite Industries rose over 1% to ₹1,472 after reporting better-than-expected Q4FY26 earnings.

Lenskart remained in focus and rose 0.63% to ₹490.8 after 111.2 million shares changed hands in large block deals on the NSE.

Futures & Options
Nifty May 2026 futures closed at 24,228.70, a premium of 52.55 points over the spot Nifty 50 close of 24,176.15, indicating cautious positioning in the derivatives market following weakness in equities. In the cash market, the Nifty 50 declined 150.50 points or 0.62%.

Market volatility increased slightly, with India VIX rising 1.32% to 16.84 amid renewed geopolitical tensions and concerns over higher oil prices. In the F&O segment, SBI, Titan Company and HDFC Bank 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 rose on Friday as renewed fighting between the US and Iran pushed oil prices higher, reviving inflation concerns and pressuring sentiment in the debt market. The benchmark 6.48% 2035 government bond yield rose to 6.9809% from 6.9328% on Thursday, with bond prices moving inversely to yields.

Investor focus remained on the auction of the new benchmark 2036 government security, through which New Delhi raised ₹340 billion. The auction received strong demand, with competitive bids worth ₹1.02 trillion against the notified amount of ₹340 billion. The new GS 2036 bond was auctioned at a cut-off yield of 6.94%, while the weighted average yield stood at 6.9354%. There was no devolvement on primary dealers, indicating healthy market appetite despite volatile global conditions and rising Brent Crude prices.

Forex
Indian rupee ended the week higher as optimism around a potential US-Iran peace agreement supported Asian currencies, although renewed hostilities continued to keep volatility elevated. The rupee settled at 94.40 against the US dollar, up 0.4% on a weekly basis, despite declining 0.2% from the previous session.

Investor sentiment remained sensitive to developments in the prolonged West Asia conflict, with fresh fighting reported even as Donald Trump stated that the ceasefire remained in effect. The rupee weakened toward 94.70 during the session before recovering part of its losses.

Crypto
Crypto markets traded lower on Friday as rising geopolitical tensions, ETF outflows and regulatory uncertainty weighed on investor sentiment. The global crypto market capitalisation declined 0.73% to around $2.66 trillion.

Bitcoin fell 1.64% to around $79,637, slipping below the key $80,000 level after several sessions of resilience. Market sentiment weakened amid heavy ETF outflows, renewed concerns around the US-Iran conflict and rising Brent Crude prices, which climbed above $101 per barrel.

Fresh uncertainty emerged after Tehran introduced new Strait of Hormuz transit rules and reports surfaced of attacks targeting UAE airspace. Meanwhile, Ethereum declined 2.02% to around $2,280 as broader risk appetite weakened across digital assets.

US Stock Futures
US stock futures traded higher on Friday morning as investors positioned for the closely watched April non-farm payrolls report, which is expected to provide fresh clues on the health of the US economy and the Federal Reserve’s policy outlook. Futures linked to the S&P 500 gained around 0.4%, while Nasdaq-100 futures advanced roughly 0.6%, supported by continued strength in technology shares.

Markets are expecting the April payrolls report to show around 62,000 new jobs added, with the unemployment rate seen at 4.3% and wages rising 0.3% month-on-month. The data is likely to reinforce expectations of a slowing but still resilient US economy, while also shaping market views on future interest rate decisions by the Federal Reserve.

US Treasury Notes
Yields on US Treasury edged lower in early Friday trading as investors adopted a cautious stance ahead of the closely watched April non-farm payrolls data. The benchmark 10-year Treasury yield eased around 2 basis points to approximately 4.37%, reflecting a wait-and-watch approach in global bond markets.

Despite the slight pullback in yields, investor sentiment remained cautious due to ongoing geopolitical tensions in the Strait of Hormuz and concerns over persistent inflation. Brent Crude prices remained elevated near $95 per barrel, reinforcing fears that higher energy costs could keep inflation sticky and compel the Federal Reserve to maintain a higher-for-longer interest rate stance.

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