Equity benchmarks experienced a decline on Tuesday during a volatile trading session. The Nifty 50 closed at 24,032.80, down by 86.50 points or 0.36%, driven by a record-low rupee, rising crude oil prices, and escalating tensions in West Asia that unsettled investor confidence. Similarly, the Sensex fell by 251.61 points or 0.33%, settling at 77,017.79.
The Indian rupee reached a new all-time low of 95.43 against the dollar, with the onshore spot rate finishing at approximately 95.34. This depreciation occurred amid intensified Iranian attacks on vital energy infrastructure in the UAE, which jeopardized a fragile four-week truce and raised concerns over potential supply disruptions through the Strait of Hormuz.
Brent crude prices surged to an intraday high of $115 per barrel, while domestic crude futures remained between ₹9,800 and ₹10,000. U.S. President Donald Trump announced “Project Freedom,” aimed at reopening the strategic waterway, though energy markets continued to exhibit high prices.
Anindya Banerjee, the Head of Commodity and Currency Research at Kotak Securities, remarked that the rupee’s record low reflects “unrelenting pressure from West Asia.” He noted that India’s monthly energy import bill has risen by 70–80% since the conflict began, and foreign portfolio investor outflows have totaled around $21 billion. Banerjee cautioned that if Brent crude prices rise towards $125–130, the dollar-rupee exchange rate could approach the 97.00–97.50 range, emphasizing that “the path of least resistance for spot remains higher” until crude prices fall below $100.
The Nifty opened lower at 24,052.60 and experienced a sharp decline in the first half, dipping to an intraday low of 23,882. However, it recovered nearly 200 points in the latter part of the session, closing above its earlier lows. The index formed a Dragonfly Doji on the daily chart, indicating buying interest at lower levels.
For eight consecutive sessions, the Nifty has ranged between 23,796 and 24,335, with a noticeable Bollinger Band squeeze on lower timeframes suggesting an impending increase in volatility and a potential directional movement in the next two to three trading sessions.
The Bank Nifty underperformed, dropping 331.45 points or 0.60% to close at 54,547.05. Sectoral performance was mixed, with Auto, FMCG, Pharma, IT, and Metals moving higher, while Realty, Private Banks, PSU Banks, Consumer Durables, and Oil & Gas saw declines.
On an individual stock basis, M&M and UltraTech Cement were among the gainers in the Nifty, while ICICI Bank, Jio Financial, and Coal India underwent the most significant sell-offs. M&M reported strong quarterly results, and Marico achieved double-digit growth guidance for FY27.
Broader markets outperformed benchmarks, with the Nifty Midcap 100 rising by 0.17% and the Nifty Smallcap 100 by 0.28%. Market breadth was relatively stable, with 240 stocks from the Nifty 500 universe closing in positive territory.
Gold was priced near ₹1,49,650 per 10 grams, up approximately 0.20%, with COMEX gold maintaining support near $4,510. Domestic gold support is identified at ₹1,49,000, with resistance at ₹1,51,500.
On the earnings front, among 109 companies tracked by Motilal Oswal Financial Services, sales surpassed estimates by 1.6%, and profit after tax (PAT) exceeded expectations by 2.6%. Notable performance came from banks, consumer, healthcare, metals, and retail sectors, while autos, NBFCs, and Oil & Gas reported misses. Siddhartha Khemka, Head of Research at Motilal Oswal, stated that once the election outcomes are digested, market attention will return to near-term drivers, including developments in West Asia.
Looking ahead, markets are closely watching U.S. April unemployment data and non-farm payrolls, which will influence interest rate expectations and impact gold and currency markets. Domestically, geopolitical developments, the trajectory of the rupee, and ongoing Q4 earnings will be critical variables. A decisive movement above 24,335 or below 23,800 will be significant in determining the Nifty’s next trend.
Published on May 5, 2026.
