Closing Bell: Sensex Falls 251 Points, Nifty 50 Slips 0.36% on May 5; Crude Oil Elevated Above $110, Rupee Hits Record Low

Market Update at 04:04 PM: Indian benchmark indices, the BSE Sensex and Nifty 50, closed lower by approximately 0.3 per cent on Tuesday, May 5, as elevated crude oil prices linked to Middle East tensions weighed on investor sentiment. Market participants also remained cautious while assessing March-quarter corporate earnings.

The Nifty 50 opened lower at 24,052.60 and declined to an Intraday low of 23,882.05. Although the index recovered to hit a high of 24,081.70, it failed to sustain momentum and eventually settled just above the 24,000 mark. The index rebounded nearly 150 points from the day’s low but still ended down 86.50 points, or 0.36 per cent, at 24,032.80. The Sensex declined 251.61 points, or 0.33 per cent, to close at 77,017.79.

In the commodities market, Brent crude oil futures fell 1.3 per cent to USD 112.93 per barrel, while West Texas Intermediate crude dropped 2.3 per cent to USD 104 per barrel. Despite the decline, prices remained elevated above USD 110 per barrel after a sharp surge in the previous session amid concerns over supply disruptions.

The Indian rupee weakened sharply, falling 0.56 per cent against the U.S. dollar to a record low of 95.43. The decline followed heightened tensions due to U.S.-Iran strikes in the Gulf, which dampened hopes of a near-term resolution and raised concerns for India’s oil-import-dependent economy.

On the sectoral front, 7 out of 11 key indices ended in positive territory. Broader markets showed resilience, with the Nifty Midcap index rising 0.17 per cent and the Nifty Smallcap 100 index gaining 0.28 per cent.

The Nifty FMCG Index emerged as the top gainer, advancing 0.64 per cent and extending gains for the second consecutive session. In contrast, the Nifty Realty Index was the worst performer, declining 1.41 per cent, with four out of its ten constituents ending in the red.

Among stock-specific movements, Larsen & Toubro slipped 1.13 per cent ahead of its Quarterly Results, weighed down by its exposure to the Middle East region. Wockhardt surged 7.86 per cent after reporting a swing to profit in the March quarter. Sobha Limited climbed as much as 9.8 per cent intraday following a more than twofold jump in fourth-quarter profit, though it eventually closed 0.41 per cent higher.

In terms of index contributors, Mahindra and Mahindra added 20.22 points to the Nifty 50, followed by Infosys contributing 7.40 points and UltraTech Cement adding 5.27 points. On the downside, ICICI Bank dragged the index by 30.34 points, while HDFC Bank and Bharti Airtel pulled it down by 23.62 points and 14.00 points, respectively.

Market breadth remained negative on May 5. Out of 3,391 stocks traded on the NSE, 1,604 advanced, 1,680 declined, and 107 remained unchanged. A total of 116 stocks touched their 52-week highs, while 24 hit their 52-week lows. Additionally, 114 stocks were locked in Upper Circuits, whereas 40 stocks were locked in Lower Circuits.

Market Update at 2:39 PM: Indian benchmark indices trimmed early losses but remained in the red, supported by gains in FMCG and metal stocks. The Nifty 50 was trading 75.65 points or 0.31 per cent lower at 24,043.65 as of 14:28 IST on May 5, 2026. The Sensex declined 226.55 points or 0.29 per cent to 77,042.85 as of 14:27 IST.

Among the Sensex constituents, Eternal, ICICI Bank, HDFC Bank, and State Bank of India emerged as the top laggards, weighing on the indices.

In the broader market, the Nifty MidCap index slipped 0.34 per cent, while the Nifty SmallCap index edged 0.04 per cent lower, indicating mild weakness beyond the frontline indices.

On the sectoral front, banking and realty stocks bore the brunt of the selling pressure. The Nifty Bank, Nifty PSU Bank, Nifty Realty, and Nifty Financial Services indices declined the most, whereas the Nifty IT index showed relative resilience with minimal losses.

Investor sentiment remained cautious amid escalating geopolitical tensions in the Middle East. Reports indicated that the U.S. and Iran have exchanged fire at the Strait of Hormuz despite a ceasefire that had been in place for a month, raising concerns over prolonged instability and its potential impact on global growth.

Further intensifying tensions, Iran reportedly launched missile and drone attacks on the UAE and targeted a South Korean cargo ship near the Strait of Hormuz. In response, U.S. President Donald Trump stated that the U.S. would ensure the safe passage of ships through the critical trade route and warned that Iran would be “blown off the face of earth” if it attacked U.S. vessels protecting cargo shipments.

The ongoing geopolitical developments have added uncertainty to global markets, keeping investors on edge and limiting any sharp recovery in equities.

Market Update at 12:36 PM: Indian equity benchmarks extended their losses on Tuesday, weighed down by weakness in oil & gas, realty, and financial stocks, as escalating geopolitical tensions in West Asia dampened investor sentiment.

The Nifty 50 was trading 0.91 per cent, or 220.35 points lower, at 23,898.95. Meanwhile, the Sensex declined 701.98 points, or 0.98 per cent, to 76,577.07 during the session.

Among the Sensex constituents, Eternal, ICICI Bank, HDFC Bank, and State Bank of India emerged as the Top Losers, contributing significantly to the decline in frontline indices.

The broader markets also mirrored the weak sentiment. The Nifty MidCap index was down 0.34 per cent, while the Nifty SmallCap index slipped 0.04 per cent, indicating cautious participation beyond Large-Cap stocks.

On the sectoral front, banking and rate-sensitive stocks led the losses. The Nifty Bank, Nifty PSU Bank, Nifty Realty, and Nifty Financial Services indices recorded the sharpest declines. In contrast, the Nifty IT index showed relative resilience and declined the least among sectoral peers.

Investor sentiment remained fragile amid rising geopolitical risks. Reports indicated that the U.S. and Iran have exchanged fire at the Strait of Hormuz despite a month-old ceasefire, raising concerns that tensions could persist longer and weigh on global economic growth.

Further escalating the situation, Iran reportedly launched missile and drone attacks on the UAE and fired at a South Korean cargo ship near the Strait of Hormuz, intensifying fears of disruption in key global shipping routes.

U.S. President Donald Trump stated that the U.S. would ensure safe passage of ships through the Strait of Hormuz. He also warned that Iran “will be blown off the face of earth” if it targets U.S. ships protecting cargo vessels, signaling a sharp escalation in rhetoric.

The ongoing geopolitical uncertainty, particularly in a critical oil transit region, has raised concerns over potential supply disruptions and higher crude prices, which could have broader implications for inflation and global markets.

Market Update at 09:35 AM: Indian equity benchmarks indicated a weak start in the pre-market session on Tuesday, tracking negative global cues and rising geopolitical tensions. The BSE Sensex stood at 77,102.88, down 166.52 points or 0.22 per cent, while the NSE Nifty 50 was at 24,052.60, lower by 66.70 points or 0.28 per cent.

The GIFT Nifty, considered an early indicator of the Nifty 50’s performance, signalled further downside. It was trading over 100 points lower at 24,041, down 165 points or 0.68 per cent, reflecting weak sentiment ahead of the opening bell.

Investor sentiment remained fragile amid escalating tensions between the U.S. and Iran. Reports suggest that both nations have exchanged fire at the Strait of Hormuz despite a month-old ceasefire, raising concerns about prolonged geopolitical instability and its impact on global growth. Adding to the uncertainty, Iran reportedly launched missile and drone attacks on the UAE and fired at a South Korean cargo ship near the Strait of Hormuz.

U.S. President Donald Trump stated that the U.S. would ensure the safe passage of ships through the Strait of Hormuz, warning that Iran would face severe consequences if it targeted U.S. vessels protecting cargo shipments.

In the Asia-Pacific region, trading activity remained subdued as several markets were closed for holidays. However, Hong Kong’s Hang Seng index declined over 1 per cent, reflecting broader regional weakness.

Overnight in the U.S., Wall Street indices ended lower. The S&P 500 declined 0.41 per cent, while the Dow Jones Industrial Average dropped 1.13 per cent. The Nasdaq Composite also ended marginally lower by 0.19 per cent.

In the commodities market, crude oil prices surged sharply amid supply concerns. Brent crude jumped as much as 6.5 per cent to USD 115.30 per barrel in the previous session. Although prices eased slightly during the Asia session, they continued to trade at elevated levels, with the May futures contract down 0.63 per cent at USD 113.72 per barrel.

Precious metals showed mixed trends. Gold futures rose 0.38 per cent, indicating safe-haven demand, while silver futures declined 0.32 per cent.

Pre-Market Update at 7:34 AM: The Indian benchmark indices, Sensex and Nifty 50, are likely to open on a weak note on Tuesday, May 5, tracking negative global cues as rising tensions in the U.S.–Iran conflict weighed on investor sentiment. Gift Nifty hovered around the 24,038 mark, trading at a discount of about 30 points compared to the previous close of Nifty futures, signalling a likely negative start for domestic markets. Asian markets traded in the red, while U.S. markets ended lower overnight, with the S&P 500 pulling back from its record highs.

Escalating tensions in the U.S.–Iran conflict remain a major overhang for global markets. Both nations exchanged fire on Monday, drawing in the United Arab Emirates and raising concerns about further strikes on Iranian targets. The U.S. military reported destroying six Iranian boats and intercepting multiple cruise missiles and drones, as Iran attempted to disrupt efforts to reopen shipping routes through the Strait of Hormuz.

On the domestic political front, assembly election results are in focus. The BJP is poised to form governments with strong majorities in West Bengal and Assam. In Kerala, the Congress-led UDF secured a decisive win, while in Tamil Nadu, Vijay’s TVK claimed 107 seats, pushing the ruling DMK, led by CM Stalin, to third place.

Crude oil prices cooled slightly after a sharp rally. Brent crude for July fell 0.6 per cent to USD 113.76 per barrel, while U.S. WTI crude declined 1.5 per cent to USD 104.83, following strong gains in the previous session. Meanwhile, the U.S. dollar index held steady at 98.452 after a 0.3 per cent rise earlier.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.61. On the Put (PE) side, significant open interest is concentrated at 24,000 and 23,500 strikes, indicating strong support levels. On the Call (CE) side, notable open interest addition was seen at 24,200 and 24,600 strikes, suggesting resistance. Additionally, high open interest is concentrated at 24,300 and 24,500 levels.

Nifty 50 continues to trade within a well-defined range. Immediate resistance is seen at 24,335; a sustained move above this level could push the index towards 24,602, and further towards 24,750. On the downside, strong support is placed near 23,951 (20-DMA), below which the index may drift towards 23,790. Overall, Nifty 50 is trading in a broader range of 23,800–24,300, with a breakout on either side potentially leading to a directional move of 150–200 points.

Larsen & Toubro, Mahindra & Mahindra, Hero MotoCorp, Coforge, United Breweries, Ajanta Pharma, Aavas Financiers, Dalmia Bharat Sugar, Voltamp Transformers, and Poonawalla Fincorp are scheduled to announce their results on May 5.

There are no stocks under the F&O ban for May 5.

On May 4, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth Rs 2,835.62 crore, while Domestic Institutional Investors (DIIs) also bought shares worth Rs 4,764.16 crore.

On Monday, Indian markets pared early gains due to profit booking but ended higher. The Sensex gained 355.90 points, or 0.46 per cent, to close at 77,269.40, while the Nifty 50 rose 121.75 points, or 0.51 per cent, to settle at 24,119.30.

U.S. markets closed lower on Monday as geopolitical tensions overshadowed strong earnings optimism. The Dow Jones Industrial Average fell 1.13 per cent to 48,941.90, while the S&P 500 declined 0.41 per cent to 7,200.75. The Nasdaq slipped 0.19 per cent to 25,067.80. Among key stocks, Nvidia rose 0.04 per cent, AMD declined 5.27 per cent, and Intel fell 3.84 per cent. Microsoft ended marginally lower, Apple dropped 1.21 per cent, and Amazon gained 1.36 per cent. Tesla rose 0.45 per cent. GameStop plunged 10 per cent, while eBay advanced करीब 5 per cent. FedEx declined 9.1 per cent, United Parcel Service fell 10.5 per cent, Palantir gained 1.4 per cent, and Norwegian slipped 8.6 per cent.

Gold prices remained largely steady amid geopolitical tensions and inflation concerns. Spot gold rose 0.2 per cent to USD 4,528.99 per ounce, while spot silver gained 0.1 per cent to USD 72.76 per ounce.

Disclaimer: The article is for informational purposes only and not investment advice.

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