Nifty Posts Gains Amid Ongoing US-Iran Tensions and Volatile Market Conditions

Indian Stock Market Ends Lower Amid US-Iran War Escalation

The Indian stock market finished lower on Tuesday, 6 May 2026, tracking weak global cues and rising geopolitical concerns driven by the renewed escalation in the US-Iran war. The key benchmark indices, the Nifty 50 and the BSE Sensex, closed at 24,032 and 77,017, respectively.

The Nifty 50 index declined by 86 points, while the BSE Sensex lost 251 points. The Bank Nifty index also finished lower, down by 331 points at 54,547. Sectorally, the trend was mixed, with auto, pharma, and FMCG stocks showing resilience, while realty, banking, and financials edged lower. Broader markets remained relatively stable, with midcap and smallcap indices showing marginal movement.

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The Gift Nifty live chart is signalling a positive start for the Indian stock market, following the de-escalation in the US-Iran war. The index opened upside at 24,221 and extended its morning gains, touching an intraday high of 24,324.

Market experts are expecting a big gap-up opening on Wednesday, supported by firm global cues and early signals from Gift Nifty. Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, said that the Nifty 50 is set to open on a positive note, supported by firm global cues and early signals from Gift Nifty.

The US administration has paused escorting commercial ships through the Strait of Hormuz, citing a desire to reach a peace deal with Iran. The announcement came hours after Secretary of State Marco Rubio said the United States had completed its offensive operations against Iran, while withholding the right to unleash a "devastating" response to any new attacks on shipping in the narrow shipping lanes.

Crude oil prices continue to fall, with the WTI crude oil price correcting over 1.50% and slipping below $100 per barrel. The easing of crude oil prices led to a sharp rise in gold and silver prices, with the COMEX gold rate oscillating around $4,645 per ounce and the COMEX silver rate oscillating around $75/oz.

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

Stocks to Watch

In the domestic market, attention will increasingly shift toward the ongoing earnings season. Key results from capital goods major Larsen & Toubro, auto leaders Mahindra & Mahindra and Hero MotoCorp, and banking major Punjab National Bank are expected to drive sector-specific momentum and influence broader market direction.

Volatility indicators are showing early signs of easing, with the India VIX declining modestly to around 17.9. A further cooling in volatility could reinforce bullish sentiment if sustained alongside supportive global cues.

Stock Market Outlook

For day traders, Shrikant Chouhan, Head Equity Research, Kotak Securities, said that 23,900/76,500 would act as an immediate support zone, while 24,100/77,200 or the 50-day SMA would be the key resistance area for the bulls.

On the outlook of the Bank Nifty, Vatsal Bhuva, Technical Analyst at LKP Securities, said that the index formed a spinning top candlestick on the daily chart, signalling indecision near current levels. On the hourly chart, a positive RSI divergence is emerging, suggesting a potential short-term pullback or relief bounce.

Stocks to Buy

Market experts have recommended the following stocks for intraday trading: