Nifty Falls Below 24,200; Sensex Drops 516 Points Amid Global Market Volatility, IT Sector Shows Resilience

Indian Markets Decline Amid Geopolitical Concerns

Indian benchmark indices witnessed a sharp decline on May 8, with the Nifty closing below the 24,200 mark amid renewed geopolitical concerns following reported clashes between Iran and the United States, which triggered a rise in crude oil prices.

The Indian markets opened on a weak note, and sustained selling pressure dragged the Nifty to an intraday low of 24,126.65. However, buying interest at lower levels, particularly in IT, healthcare, and consumer durable stocks, helped the indices recover partially from the day’s lows.

At close, the Sensex was down 516.33 points or 0.66 percent at 77,328.19, and the Nifty was down 150.50 points or 0.62 percent at 24,176.15.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

For the week, the BSE Sensex jumped 0.5 percent, while the Nifty50 index rose 0.7 percent.

Broader markets traded on a mixed note, with the Nifty Midcap index declining 0.15%, while the Nifty Smallcap index gained 0.22%.

SBI, Coal India, HDFC Bank, Bajaj Finance, Axis Bank were among top losers on the Nifty, while gainers were Asian Paints, Apollo Hospitals, Tata Consumer, Adani Ports, Titan Company.

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

Among sectors, except IT, Healthcare, Consumer Durables and FMCG, all other indices ended in the red with PSU Bank index slipped 3%, Oil & Gas index shed 1%, while Private Bank, Metal, Energy, Power, Realty down 0.5% each.

More than 210 stocks touched their 52-week high on the BSE, including Thermax, Finolex Cables, Craftsman, Netweb, Natco Pharma, Syrma SGS, Honasa Consumer, Adani Ports, Sai Life Sciences, Polycab India, Laurus Labs, MCX India, Cummins India, Apar Industries, RBL Bank, BHEL, Welspun Corp, Hitachi Energy, among others.

In stock-specific action, SBI shares plunged 6.7% post below estimate earnings, Dabur India shares rose 3.6% after reporting strong Q4 earnings, while BSE shares slipped 1.4% despite posting a 32% rise in quarterly profit. Globus Spirits declined 11% after weak Q4 net interest income (NII).

Sonata Software surged 9% as Q4 profit jumped 25%, while Thermax gained 12.5% following robust quarterly results. Thyrocare Technologies shares advanced 3% on better-than-expected earnings performance.

Meanwhile, CCL Products shares dropped 6.8% despite reporting improved earnings, and Britannia Industries declined 5% after the company cautioned about potential price hikes. Suryoday Small Finance Bank shares added 10.7% after reporting a profit in the fourth quarter.

Markets Outlook for May 11

The markets remained under pressure on Friday and ended lower amid weak global cues and renewed geopolitical concerns. The Nifty opened on a subdued note and oscillated within a narrow band throughout the session. The index eventually settled at 24,176.15, down 0.62%. The weakness was largely led by banking and financial stocks, while IT and pharma showed relative resilience. Broader markets, however, outperformed the benchmarks, with midcap and smallcap indices ending flat to marginally positive, reflecting continued stock-specific interest.

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. Additionally, 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.

While the Nifty index offers no clear indication regarding the next directional move, participants should maintain a stock-specific approach, preferring pharma, energy, auto, and select metal counters, while remaining selective across other sectors.

Technical Analysis

The index has slipped back below the 50 EMA after briefly staying above it, indicating renewed weakness in sentiment. The mood has further deteriorated as the index also moved below the 50 EMA on the intraday timeframe. In addition, the RSI has re-entered a bearish crossover on the daily chart, reflecting weakening momentum.

Overall, the sentiment appears weak, with heavy call writing visible around the 24,200 strike. If the Nifty sustains below 24,200 on Monday, the index could witness further correction towards the 24,050–24,000 zone. On the other hand, a move back above 24,200 may trigger a near-term recovery rally towards 24,350–24,400.