Stock Market May 8 Open: Sensex Loses 291 points, Nifty Slips 95 points at Open as Iran-US Exchange of Fire Dents Market Sentiment

Mumbai, May 8: Indian equity markets opened lower on Friday, pressurised by a fresh flare-up between the United States and Iran overnight that spooked global investors and dragged risk assets lower in Asian markets.

The benchmark BSE Sensex traded 290.84 points or 0.37 per cent lower at 77,553.68, while the Nifty 50 eased 95.15 points or 0.39 per cent to 24,231.50 at 9:22 am. Renewed attacks between US and Iranian forces near the Strait of Hormuz late Thursday night upended sentiment after US President Donald Trump said earlier this week that a ceasefire with Iran is underway. The geopolitical risk flare-up, alongside surging crude oil prices weighed on early buying sentiment dragged major indices lower at the open, led by financials and energy stocks.

Gainers & Losers

The top gainers on the Nifty 50 were Asian Paints ₹2,563.00 (1.28 per cent), Tata Consumer Products ₹1,166.00 (1.24 per cent) and Tech Mahindra ₹1,463.40 (1.05 per cent) while BEL ₹442.70 (0.74 per cent) and Wipro ₹198.50 (0.58 per cent) also traded higher at the open. The top losers were Coal India ₹458.50 (-1.75 per cent), M&M ₹3,327.00 (-1.30 per cent), Axis Bank ₹1,277.40 (-1.18 per cent), HDFC Bank ₹786.80 (-1.16 per cent) and Tata Motors PV ₹355.30 (-1.10 per cent).

Broad Markets & Sectoral Indices

Across the broader markets, the Nifty Smallcap 100 index added 0.05 per cent to 18,704.65 at the open, whereas the Nifty Midcap 100 index slipped 0.07 per cent to 61,961.60 and Nifty 500 was down 0.30 per cent to 23,145.40. Among sectoral indices, Nifty IT outperformed peers by trading higher 0.67 per cent to 29,236.75 at the open. Nifty Chemicals also traded 0.56 per cent higher to 29,743.00, as defensive and tech shares found some buyers. The worst performer on the NSE was Nifty Private Bank, down 0.83 per cent to 26,559.05, followed by Nifty Financial Services, which declined 0.81 per cent to 26,234.30, Nifty Bank falling 0.77 per cent to 55,617.30, Nifty PSU Bank shedding 0.72 per cent to 8,574.55, and Nifty Auto slipping 0.61 per cent to 27,173.90, as rate-sensitive and cyclical sectors traded lower in early deals.

Middle East Conflict

Iranian forces launched fresh attacks on US forces late on Thursday night targeting an Iranian oil tanker in port before firing missiles at coastal areas near the Strait of Hormuz including Bandar Khamir, Sirik, and Qeshm Island among others. But the US Central Command said Iranian forces “conduct unprovoked attacks”, launching several missiles, drones, and small boats at two US Navy guided-missile destroyers that were transiting the Strait of Hormuz but adding they were promptly defeated with US retaliatory precision strikes targeting multiple Iranian military sites. Thursday’s attack comes as tensions simmered after Iran’s foreign ministry said Thursday that it was studying a US call to halt hostilities and end the war between the two nations.

Asian and US Markets

Asian markets were broadly lower on Friday morning, with Japan’s Nikkei 225 falling 1.05 per cent to 62,174.12, Hong Kong’s Hang Seng declining 1.11 per cent, and Australia’s ASX All Ordinaries shedding 1.61 per cent as the overnight escalation in the Middle East weighed on regional sentiment. Indonesia’s JSX Composite and Pakistan’s KSE 100 were among the few gainers in the region, rising 1.15 per cent and 0.69 per cent respectively.

US markets ended lower on Thursday as investor confidence was rattled by the renewed Iran tensions. The Dow Jones Industrial Average fell 313.62 points or 0.63 per cent to 49,596.97, the S&P 500 slipped 0.38 per cent to 7,337.11, and the Nasdaq Composite declined 0.13 per cent to 25,806.20, with the NYSE Composite the steepest loser, dropping 1.17 per cent to 23,011.31.

Oil Prices

Oil prices surged more than 1 per cent on Friday after the renewed exchange of fire between the US and Iran threatened the fragile ceasefire and reignited fears over the Strait of Hormuz, a critical global oil and gas transit route. Brent crude futures rose $1.41 or 1.41 per cent to $101.47 a barrel, while West Texas Intermediate climbed $1.12 or 1.18 per cent to $95.93 a barrel, snapping three consecutive days of declines.

Yesterday Once More

Indian markets had ended little changed on Thursday after a volatile session, with the Sensex edging down 114 points or 0.15 per cent to settle at 77,844.52 and the Nifty 50 slipping just 4.30 points or 0.02 per cent to close at 24,326.65. Gains in auto, defence, and capital goods stocks countered profit-booking in IT and FMCG, while the broader midcap and smallcap indices outperformed, rising 1.1 per cent and 0.87 per cent respectively.

Source:

• bseindia.com
• nseindia.com