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Stock market today: Headline indices, the Sensex and the Nifty 50, extended losses for the second consecutive session on Friday, 8 May, with banking and financial stocks as the top drags.
The Sensex ended 516 points, or 0.66%, lower at 77,328.19, while the Nifty 50 settled at 24,176.15, down 151 points, or 0.62%. Mid and small-cap indices continued their outperformance. The BSE 150 Midcap index declined 0.05%, while the BSE 250 Smallcap index inched up by 0.15%.
SBI, HDFC Bank, ICICI Bank, and Axis Bank were the top drags on the Sensex index. As many as 18 stocks ended lower in the 30-share pack.
The Sensex and Nifty 50 extended losses on May 8 due to investor caution amid uncertainty over the Middle East conflict. Banking and financial stocks were significant drags, with SBI shares falling sharply after its Q4 results showed a shrinking net interest margin.
Immediate support for the Nifty 50 is seen in the 24,000-23,950 zone. On the upside, immediate resistance is placed in the 24,330-24,350 zone. A move above 24,200 could trigger a rally towards 24,350–24,400.
Despite the overall market decline, the Nifty IT sector jumped 1.21%, and Consumer Durables also rose by 0.69%. Mid and small-cap indices continued their outperformance, with the BSE 250 Smallcap index inching up.
The Bank Nifty index ended flat near the 56,000 level, indicating indecisiveness. Key resistance is expected around the 56,400 – 56,500 zone, with immediate support at the 55,600 – 55,500 range.
Renewed geopolitical concerns, following reported Iran-US clashes near the Strait of Hormuz, put pressure on Indian equities. This led to a risk-off session and profit booking, impacting market benchmarks like the Sensex and Nifty 50.
Despite the decline in benchmarks, the overall market capitalisation of BSE-listed firms remained stable at ₹473 lakh crore, thanks to the resilience of the mid- and small-cap segments.
The market benchmarks ended lower as investors bet on stocks selectively amid persisting uncertainty over the Middle East conflict. Crude oil benchmark Brent Crude eased but traded near the $100 per barrel.
"The decline was primarily driven by a fresh spike in crude oil prices, with Brent crude moving back above the $100 mark amid renewed military exchanges between the US and Iran, dampening hopes of a near-term peace agreement," said Ajit Mishra, SVP- Research, Religare Broking.
"Continued weakness in the rupee and cautious institutional positioning ahead of the weekend further capped risk appetite. Stock-specific earnings reactions remained mixed, adding to the choppiness in the market," said Mishra.
The Indian rupee fell 25 paise to close at 94.47 per US dollar, as per PTI.
Among the sectoral indices, the Nifty PSU Bank index crashed 3.06%, with SBI shares crashing 7% after Q4 results showed its net interest margin (NIM) shrank during the March quarter.
Bank Nifty declined 1.31%, while the Financial Services index crashed 1.66%. The Private Bank index fell 0.82%, while the Metal index declined 0.87%.
However, Nifty IT jumped 1.21%, while Consumer Durables also rose by 0.69%.
"Markets witnessed a risk-off session following fresh US–Iran military action near the Strait of Hormuz, which weakened ceasefire hopes and triggered profit booking. However, stability in crude oil prices around $100 per barrel and benign US 10-year yields continue to provide support to the broader sentiment," Vinod Nair, Head of Research, Geojit Investments, noted.
"Investors continue to focus on opportunities arising from favourable corporate earnings, with valuations in several mid- and small-cap counters still appearing attractive. Sectorally, trends remained mixed, with IT and consumer durables leading gains, indicating selective strength despite the uncertain backdrop," Nair added.
According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the immediate support for Nifty is placed in the 24,000-23,950 zone.
Shah believes any sustainable move below this zone could result in Nifty extending its weakness towards 23,800, followed by 23,650 in the short term. On the upside, the immediate resistance for Nifty is placed in the 24,330-24,350 zone.
Rupak De, Senior Technical Analyst at LKP Securities, said if the Nifty sustains below 24,200 on Monday, it could witness further correction towards the 24,050–24,000 zone. However, a move back above 24,200 may trigger a near-term recovery rally towards 24,350–24,400, said De.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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