Indian Equities Market Falls Sharply, Led by Banking Stocks

Stock Market Update: Sensex and Nifty 50 End Lower for Second Consecutive Session

On Friday, 8 May, the Indian stock market benchmarks, the Sensex and the Nifty 50, extended their losses for the second consecutive session. The Sensex ended at 77,328.19, down 516 points or 0.66%, while the Nifty 50 settled at 24,176.15, down 151 points or 0.62%. The decline was led by banking and financial stocks, with SBI, HDFC Bank, ICICI Bank, and Axis Bank being the top drags on the Sensex index.

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 BSE 150 Midcap index declined by 0.05%, while the BSE 250 Smallcap index inched up by 0.15%.

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Investors bet on stocks selectively amid persisting uncertainty over the Middle East conflict, with crude oil prices moving back above the $100 mark amid renewed military exchanges between the US and Iran. The Indian rupee fell 25 paise to close at 94.47 per US dollar.

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%. However, Nifty IT jumped 1.21%, while Consumer Durables also rose by 0.69%.

Market Outlook

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.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

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.

Technical View

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.