Market Update: Stock Market Declines; Sensex Slips 400 Points, Nifty Below 24,200

May 8, 2026

Selling pressure is evident in the domestic stock market on the final trading day of the week. The key benchmark indices are trading in the red. In early trade, the Sensex fell 353.50 points to 77,491.02, while the Nifty dropped 109.25 points to reach 24,225.20. The decline in the market is attributed to selling in banking stocks. In early trading, the Rupee depreciated by 36 paise against the US Dollar, falling to 94.58.

Stock markets declined in early trade on Friday as rising geopolitical tensions in the Middle East and surging oil prices weighed heavily on investor sentiment. Outflows of foreign funds and weak trends in global markets further eroded investor confidence.

In early trade, the 30-share BSE Sensex fell 353.50 points to 77,491.02. Meanwhile, the 50-share NSE Nifty dropped 109.25 points to reach 24,225.20. The BSE benchmark hit a low of 77,331.75, down 536.66 points, while the Nifty was trading at 24,170.80, down 166.95 points.

What is happening with the top Sensex companies?
Among the 30 Sensex constituents, Mahindra & Mahindra, Axis Bank, HDFC Bank, IndusInd Bank, Bajaj Finance, and Tata Steel were among the top laggards. Asian Paints, Tech Mahindra, Adani Ports, and HCL Tech were among the gainers.

The global oil benchmark, Brent Crude, was trading at US$ 101.3 per barrel, up 1.19 percent. Ponmudi R, CEO of the online trading and wealth-tech firm Enrich Money, stated, “Rising geopolitical tensions in the Middle East are having a persistent negative impact on investor sentiment; consequently, the Indian stock market is expected to remain cautious and highly sensitive to news developments.

Despite occasional bouts of relief, the market continues to witness volatility. The recent exchange of fire between the US and Iran near the Strait of Hormuz has further exacerbated this uncertainty.”

He further added that the dichotomy between military confrontations and diplomatic rhetoric has kept investors on edge, leading to a reduced appetite for risk and reinforcing a defensive stance across global financial markets.

What is happening in global markets?
In Asian markets, South Korea’s benchmark Kospi, Japan’s benchmark Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index were trading lower.

US markets closed lower on Thursday. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., observed, “The ongoing drama of escalating and de-escalating tensions in West Asia continues, resulting in fluctuating crude oil prices.”

According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth ₹340.89 crore on Thursday. On Thursday, the BSE benchmark index closed down 114 points, or 0.15 percent, at 77,844.52. The Nifty declined by 4.30 points, or 0.02 percent, to close at 24,326.65.