Indian equities came under pressure in Friday’s trade, May 8, with both headline indices falling over 0.50% amid renewed geopolitical concerns following reported Iran-US clashes near the Strait of Hormuz.
The Nifty 50 ended the session 0.55% lower at 24,193, while the Sensex closed at 77,321, down 0.67% from the previous close. Despite fluctuating widely, both indices ended the week with gains of over 0.70%.
The broader markets closed mixed, with the Nifty Smallcap 100 index rising 0.22%, while the Nifty Midcap 100 index slipped 0.15%.
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Indian equities fell on May 8 due to renewed geopolitical concerns stemming from reported Iran-US clashes near the Strait of Hormuz. This led to a decline in both the Nifty 50 and Sensex indices.
SBI, Urban Company, Britannia, HFCL, Tejas Networks, and Vedanta were among the top losers. SBI and Britannia experienced selling pressure after reporting Q4 earnings below estimates. Urban Company’s stock continued its losing streak, while HFCL saw profit-taking after a sustained rally.
SBI shares fell after reporting March quarter numbers below estimates, attributed to weaker operating profitability. CCL Products’ shares crashed as investors were disappointed with its March quarter performance.
While the Nifty 50 and Sensex fell, broader markets showed mixed performance. The Nifty Smallcap 100 index rose, indicating some resilience in smaller companies, even as the Nifty Midcap 100 index experienced a slight dip.
Clashes between US and Iranian forces near the Strait of Hormuz heightened geopolitical concerns, causing Brent crude futures to rise above $100 a barrel. This, along with investor caution, contributed to the pressure on Indian equities.
US and Iranian forces reportedly clashed in the Gulf, while the United Arab Emirates came under renewed attack. However, President Donald Trump said a ceasefire was still holding despite the flare-up.
The escalation came as Washington awaited Tehran’s response to a US proposal aimed at ending the war, while Iran said on Thursday that it was still reviewing the latest American proposals to end the conflict.
Investors are closely monitoring the situation as negotiations between the US and Iran to end the war continue to make limited progress. Following the latest clashes, Brent crude futures rose above $100 a barrel, while world shares retreated from recent gains.
SBI, Britannia, CCL Products among top laggards after Q4 earnings
CCL Products India shares crashed 7% to ₹1,123 apiece after investors were disappointed with the company’s March quarter performance, while weaker-than-expected results from Aditya Birla Real Estate also dragged the stock down 6.6%.
State Bank of India shares, too, witnessed heavy selling pressure, falling 6.7% to ₹1,018 apiece after the lender reported March quarter numbers below estimates amid weaker operating profitability.
Meanwhile, the sell-off in Urban Company intensified further, with the stock tumbling another 4.75% to ₹139 apiece, extending its losing streak to the fourth consecutive session.
Following its Q4 earnings, Britannia Industries shares also came under significant pressure, declining 5% to ₹5,516. Besides, the sustained rally in HFCL came to a halt as investors booked profits, dragging the stock down 4.5% to ₹139.
Extending losses for the fourth straight day, City Union Bank shed another 4% to settle at ₹258.95 apiece. Among Tata group stocks, Tejas Networks, Voltas, and Tata Chemicals closed lower with losses of over 3%. Vedanta also ended the session down 3%.
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