Stock Market May 8 Mid-day Report: Sensex Tumbles 417 points, Nifty Drops 116 points  

Mumbai, May 8: Indian equity markets were trading lower in midday trade on Friday, with the BSE Sensex down 417.06 points or 0.54 per cent at 77,427.46 and the Nifty 50 declining 116.20 points or 0.48 per cent to 24,210.45 as of 11:43 am, as geopolitical anxiety stemming from renewed US-Iran hostilities continued to weigh on investor sentiment through the morning session.

The indices had slipped further from the opening levels — where the Sensex had opened down 290.84 points and the Nifty had eased 95.15 points indicating that selling pressure intensified as the session progressed rather than abating after the initial shock. The indices had briefly attempted a recovery through the 10–11 am window before fresh selling in rate-sensitive stocks pulled them back toward the day’s lows, with the Nifty holding just above the 24,200 mark as buyers and sellers contested the near-term direction.

Among the top Nifty 50 gainers in midday trade, Asian Paints led with a rise of 2.57 per cent to ₹2,595.70 from its previous close of ₹2,530.60, while Apollo Hospitals gained 2.26 per cent to ₹8,014.00 from ₹7,837.00. Adani Ports advanced 1.94 per cent to ₹1,766.50 from ₹1,732.80, Tata Consumer Products rose 1.56 per cent to ₹1,169.70 from ₹1,151.70, and HCL Technologies edged up 1.15 per cent to ₹1,197.00 from ₹1,183.40.

On the losing side, UltraTech Cement was the steepest decliner, falling 1.94 per cent to ₹11,910.00 from its previous close of ₹12,146.00, followed by HDFC Bank which dropped 1.82 per cent to ₹781.55 from ₹796.05. Bajaj Finance slipped 1.78 per cent to ₹955.40 from ₹972.75, Coal India declined 1.65 per cent to ₹458.95 from ₹466.65, and Axis Bank shed 1.55 per cent to ₹1,272.70 from ₹1,292.70.

In the broader markets, the Nifty Smallcap 100 was the outperformer, gaining 0.31 per cent to 18,753.75, while the Nifty Midcap 100 was nearly flat at 61,984.70, down just 0.03 per cent, and the Nifty 500 declined a modest 0.30 per cent to 23,144.50. On the sectoral front, Nifty IT and Nifty Healthcare were the top gainers, each rising 0.56 per cent to 29,206.60 and 15,476.65 respectively, while Nifty Pharma advanced 0.45 per cent to 24,243.90 and Nifty India Defence gained 0.43 per cent to 9,461.15, as defensives and export-oriented sectors drew buying interest.

IT Sector Bucks Trend

IT stocks rose on Friday morning, with the Nifty IT index climbing 0.68 per cent to 29,242.00 as the US dollar rallied, improving rupee realisations for dollar-revenue firms, even as benchmark indices opened with losses on fresh hostilities between the US and Iran.

The IT index traded at 29,031.55 at the open, rose to an intraday high of 29,311.90 early in the session and held up well thereafter, showing that buying interests in export-oriented IT counters continued to be strong amid weak market sentiment.

Middle East Conflict

The overnight flare-up between the US and Iran sent fresh shockwaves through global markets, with Iran’s top military command alleging that US aerial attacks struck coastal areas including Bandar Khamir, Sirik, and Qeshm Island, while the US Central Command described the Iranian strikes on its Navy destroyers as unprovoked.

The exchange of fire came a day after Iran’s foreign ministry had signalled it was considering a US proposal to end the war, dashing hopes of an imminent ceasefire. US President Donald Trump maintained the ceasefire is still in place, but the conflicting claims from both sides kept markets on edge.

Oil Prices

Oil prices rose more than 1 per cent on Friday after the renewed hostilities threatened a shaky ceasefire and dashed hopes of a full reopening of the Strait of Hormuz. Brent crude futures were up $1.41 or 1.41 per cent at $101.47 a barrel, while West Texas Intermediate rose $1.12 or 1.18 per cent to $95.93, snapping three consecutive days of declines. For the week, however, both contracts remained on track to fall around 6 per cent, reflecting the sharp retreat seen earlier in the week when optimism around a US-Iran deal had briefly weighed on prices.

Asian Markets

Asian markets were broadly lower on Friday, with Hong Kong’s Hang Seng falling 1.08 per cent to 26,339.07, Australia’s ASX All Ordinaries shedding 1.33 per cent to 8,986.30, and Japan’s Nikkei 225 declining 0.25 per cent to 62,675.71, as the Middle East flare-up dampened risk appetite across the region. Indonesia’s JSX Composite and Pakistan’s KSE 100 were among the few gainers, rising 1.15 per cent and 0.69 per cent respectively.

Indian equity markets had opened lower on Friday morning, with the Sensex trading 290.84 points or 0.37 per cent lower at 77,553.68 and the Nifty 50 easing 95.15 points or 0.39 per cent to 24,231.50 at 9:22 am, as overnight US-Iran hostilities and surging crude oil prices dampened early buying sentiment. Financials and energy stocks led the decline at the open, though IT and pharma counters provided a partial offset even in the opening minutes of trade.

Source:

• bseindia.com
• nseindia.com