Sensex Drops Over 500 Points, Nifty Slips Below 24,200 As Banks, PSU Stocks Drag Markets Lower

Mumbai, May 8:Benchmark indices ended sharply lower on Friday as rising crude oil prices, renewed tensions in the Middle East and heavy selling in banking and PSU stocks weighed on investor sentiment through the session.

The market remained under pressure for most of the day after opening weak in line with negative global cues. Selling intensified in the second half of the session, dragging the benchmarks near day’s lows by close.

The Sensex ended down 516.33 points, or 0.66%, at 77,328.19, while the Nifty 50 fell 150.50 points, or 0.62%, to settle at 24,176.15.

Market breadth remained weak, with 2,048 shares declining against 1,988 advancing stocks on the NSE, while 170 shares remained unchanged.

Investor sentiment turned cautious after crude oil prices surged following renewed hostilities between the United States and Iran, reviving concerns over inflationary pressures and the impact of higher energy costs on the Indian economy.

Banks Melt

Banking and financial stocks ledthe decline on the benchmarks. State Bank of India, HDFC Bank, Bajaj Finance and Axis Bank were among the top drags on the Nifty 50, as investors cut exposure to rate-sensitive sectors amid concerns that elevated oil prices could complicate the interest rate outlook.

The PSU Bank index emerged as the worst-performing sectoral gauge, tumbling nearly 3% during the session. Oil & Gas stocks also came under pressure, with the index falling around 1% as rising crude prices triggered worries around input costs and marketing margins.

Private banks, metals, energy, power and realty stocks also ended in the red, with each sectoral index declining around 0.5%.

Some Outperformance

Despite the broader weakness, select defensive and consumption-oriented pockets of the market saw buying interest.

FMCG stocks outperformed after investors rotated into relatively defensive sectors amid the risk-off sentiment. Asian Paints and Tata Consumer Products ended among the top gainers on the Nifty, while healthcare stocks also remained resilient.

Apollo Hospitals advanced after continuedbuying interest in defensive healthcare names, while Titan Company surged following strong quarterly earnings driven by robust jewellery sales growth.

Consumer durables and IT stocks also showed relative strength and managed to end higher despite the broader market weakness.

Selective Interest

Broader markets performed relatively better than the frontline indices. The Nifty Midcap index slipped just 0.15%, while the Nifty Smallcap index managed to end 0.22% higher, indicating selective buying interest in individual stocks despite the weak headline sentiment.

Stock-specific action remained strong amid the ongoing earnings season, with investors reacting sharply to quarterly results and management commentary across sectors.

The sharp rise in oil prices and the weakening rupee remain key near-term concerns for equities, particularly for banking, consumption and oil-sensitive sectors.

At the same time, resilient participation in midcaps and smallcaps suggests domestic liquidity continues to support broader market sentiment despite global uncertainty.

Going ahead, market participants are expected to closely monitor developments in the Middle East, crude oil price movements, foreign institutional investor activity and upcoming global macroeconomic data for further direction.

Source:

• Exchanges