Equities Slump as Renewed US-Iran Tensions Lift Oil; Bond Yields Jump

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

US President Donald Trump (File Photo)

By Dehuti Jani

July 8, 2026 at 12:11 PM IST

Indian equity benchmarks recorded their biggest one-day decline in more than three months on Wednesday after renewed US-Iran tensions sent crude oil prices sharply higher, triggering a broad risk-off move across global markets. The Nifty50 plunged 516.65 points or 2.12% to 23,882.05, while the BSE Sensex fell 1,677.12 points or 2.15% to 76,503.60, marking their worst session in over three months.

Investor sentiment deteriorated after US President Donald Trump said the US-Iran peace accord was "over", reigniting fears of a prolonged conflict in West Asia. Iran subsequently launched attacks on US military sites in Bahrain and Kuwait after Washington struck Iranian targets, raising concerns over disruptions to global energy supplies.

Brent Crude surged more than 6% to around $79 per barrel, fuelling concerns over imported inflation and weighing on global risk assets. Most sectors ended lower, with PSU banks and financials leading the decline, while metal and pharma stocks outperformed on a relative basis. Among Nifty50 constituents, Jio Financial Services, InterGlobe Aviation and Shriram Finance were the biggest losers.

The rupee weakened 0.6% to 95.5550 per US dollar, its lowest level in nearly a month, as rising oil prices and broad dollar strength weighed on the domestic currency. Traders said the Reserve Bank of India likely intervened through state-run banks to limit further losses.

Meanwhile, Indian government bonds came under sharp selling pressure as higher crude oil prices and rising US Treasury yields drove investors out of fixed income. The benchmark 6.94% GS 2036 yield climbed to 6.7636% from 6.6958% in the previous session. Market participants warned that a sustained move in Brent crude above $80 per barrel could trigger another round of selling in the bond market.

Top Movers of the day

Bajaj Auto rose 0.65% to ₹10,175.00 as investors accumulated the stock despite concerns over rising input costs linked to geopolitical tensions in West Asia.

Ather Energy jumped 5.56% to ₹1,204.00, extending recent gains amid sustained investor interest following the company's recent fund-raising and ESOP-related announcements.

Info Edge gained 1.28% to ₹1,174.30, supported by continued buying interest in internet and technology stocks despite a mixed broader market.

Exide Industries climbed 1.60% to ₹421.15 as investors remained positive on battery manufacturers amid improving sentiment towards the electric vehicle ecosystem.

Indus Towers advanced 1.88% to ₹390.00, aided by sustained buying in telecom infrastructure stocks following renewed investor interest in the sector.

Bharti Hexacom rose 1.85% to ₹1,528.00, tracking gains across telecom stocks as investors continued to favour defensive sectors.

Adani Energy Solutions gained 0.55% to ₹1,660.00, supported by steady buying in power and utility stocks.

Torrent Pharmaceuticals edged up 0.52% to ₹4,882.00 as investors continued to accumulate pharmaceutical stocks, which outperformed the broader market.

ONGC added 1.15% to ₹247.00, benefiting from higher crude oil prices following escalating geopolitical tensions in West Asia.

Jubilant FoodWorksslumped 5.79% to ₹428.60 as investors booked profits after recent gains, making it one of the session's worst-performing consumer stocks.

Jio Financial Services dropped 5.02% to ₹230.86, extending losses amid broad-based selling in financial stocks and profit booking following recent gains.

InterGlobe Aviation declined 5.10% to ₹5,120.00 as a sharp rise in crude oil prices fuelled concerns over higher aviation fuel costs and pressure on airline margins.

Futures & Options
Nifty July 2026 futures settled at 23,892.70, a premium of 10.65 points over the spot Nifty 50 close of 23,882.05, indicating a largely neutral undertone despite the sharp sell-off in equities. In the cash market, the Nifty 50 plunged 516.65 points or 2.12%, recording its steepest one-day decline in more than three months as renewed geopolitical tensions triggered broad-based risk aversion.

Meanwhile, India VIX surged 26.03% to 14.68, reflecting a sharp rise in near-term volatility expectations. Among stock futures, HDFC Bank, Reliance Industries and Infosys were the most actively traded contracts in the NSE F&O segment. The July 2026 derivatives series will expire on 28 July 2026.

Bonds
Indian government bond yields surged on Wednesday as renewed US-Iran tensions drove crude oil prices higher, triggering a sharp sell-off across the government securities market. The benchmark 6.94% GS 2036 yield jumped to 6.7636% from 6.6958% at the previous close, its highest level since June 25, as sentiment deteriorated sharply.

Dealers said stop-loss selling accelerated after the benchmark yield crossed the 6.74% level, although the selling was confined to select participants. Traders warned that a sustained rise in Brent Crude above the $80-per-barrel mark could trigger another round of stop-loss selling.

The market came under pressure after US President Donald Trump declared the US-Iran ceasefire had broken down, while fresh attacks between the two countries pushed Brent crude to around $78.59 per barrel, reviving concerns over imported inflation.

Forex
The Indian rupee slid to its weakest level in nearly a month on Wednesday after US President Donald Trump said the interim accord with Iran to end the war was over, triggering a sharp rise in oil prices and weighing on Asian currencies. The rupee settled at 95.5550 per dollar, down 0.6% on the day, after touching an intraday low of 95.60, its weakest level since June 11.

Crypto
The cryptocurrency market was range-bound today. Bitcoin remained range-bound near $62,748 this week after recovering from its sharp end-June sell-off, with prices staying below the $64,000 mark. Ethereum traded near $1,736.19 today, holding onto recent gains as investors continued to assess institutional demand and broader market sentiment.

US Stock Futures
US stock futures tumbled on Wednesday, with Nasdaq futures hitting a four-week low after President Donald Trump said a memorandum of understanding aimed at ending the conflict with Iran was over, sparking a rally in oil prices and denting risk appetite.

Futures on the Dow Jones Industrial Average fell 628 points, or 1.19%, after Trump's comments in Ankara, extending overnight losses. S&P 500 futures slipped 0.9%, while Nasdaq-100 futures dropped 1.3%, reflecting a broad risk-off mood as investors reacted to renewed geopolitical tensions.

US Treasury Notes
US Treasuryyields rose on Wednesday, with the benchmark 10-year Treasury note hovering near a one-month high as rising oil prices fuelled inflation concerns and reinforced expectations that the Federal Reserve could keep interest rates higher for longer. The benchmark 10-year Treasury yield stood at 4.555%, holding on to the previous session's sharp gains. The rate-sensitive two-year note yielded 4.220%, while the five-year and 30-year Treasury yields were at 4.289% and 5.081%, respectively.

Sentiment turned cautious after fresh US military air strikes on Iran drove oil prices higher, raising concerns that elevated energy costs could slow the disinflation process and make it harder for the Federal Reserve to begin easing monetary policy.