US-Iran Tensions, Crude Oil Prices, Q4 Results: Key Factors to Watch in Indian Markets This Week
Indian Stock Market Extends Decline for Second Straight Session
The Indian stock market benchmark indices, Sensex and Nifty 50, continued their downward trend for a second consecutive session on Friday, May 8, with significant losses in banking and financial stocks. The Sensex closed at 77,328.19, a decline of 516 points or 0.66% from the previous day's close. Meanwhile, the Nifty 50 settled at 24,176.15, down 151 points or 0.62% from the previous day's close.
However, broader markets showed resilience, with the BSE 150 Midcap index edging down by 0.05% and the BSE 250 Smallcap index gaining 0.15%. The market's performance is expected to remain highly volatile in the coming week due to geopolitical headlines, particularly the ongoing US-Iran situation.
Market Outlook for the Week Ahead
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According to Ponmudi R, CEO of Enrich Money, investor attention will be focused on developments surrounding the US-Iran situation, including Iran's response to the latest US proposals and further developments related to the Strait of Hormuz. Any signs of diplomatic progress could provide support to market sentiment and improve risk appetite, while any renewed military escalation or breakdown in negotiations may trigger a fresh risk-off move across global markets.
Top 5 Triggers for the Indian Stock Market
| Trigger | Description |
|---|---|
| 1. US-Iran War | The Strait of Hormuz crisis escalated after Iran dismissed a US-backed draft resolution at the UN Security Council, describing it as "biased" and "politically driven". |
| 2. Crude Oil Prices | Brent crude futures surged as much as 3% on Friday after the US and Iran exchanged air strikes, but later trimmed gains amid hopes of an extended lull in hostilities. |
| 3. Q4 Results 2026 | More than 400 companies will release their financial results for the quarter ended on March 21, 2026 in the coming week, including marquee companies such as Canara Bank and Tata Motors. |
| 4. Rupee vs US Dollar | The rupee weakened by 25 paise to settle provisionally at 94.47 against the US dollar on Friday, reversing gains from the previous two sessions amid renewed US-Iran tensions. |
| 5. FII Outflows | Foreign institutional investors remained net sellers on May 8, offloading equities worth ₹4,111 crore, while domestic institutional investors emerged as net buyers with purchases amounting to ₹6,748 crore. |
Crude Oil Prices
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Brent crude futures settled at $101.29 per barrel, rising $1.23 or 1.23% from the previous day's close. Meanwhile, US West Texas Intermediate (WTI) crude futures ended at $95.42 per barrel, up 61 cents or 0.64%. Despite Friday's rebound, both benchmarks posted weekly losses of over 6%.
Rupee vs US Dollar
The rupee closed provisionally at 94.47 against the US dollar, down 25 paise from the previous close. The domestic currency opened at 94.58 per dollar but later slipped further to touch an intraday low of 94.68 against the greenback, marking a decline of 46 paise from its previous close.
FII Outflows
Foreign institutional investors have net sold equities worth ₹2.50 lakh crore so far this year, while domestic institutional investors have recorded net purchases of ₹3.11 lakh crore.
Investor Takeaway
Investors should be prepared for highly volatile markets driven by geopolitical headlines.
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