Equity benchmarks opened lower on Tuesday as rising crude oil prices and renewed geopolitical tensions around the Strait of Hormuz influenced investor sentiment, thereby reversing early hopes for a continuation of gains from April.
The Sensex, which closed at 77,269.40 on Monday, opened at 77,103.72 and was trading at 76,995.51, down 273.89 points or 0.35 percent by 9:16 a.m. The Nifty 50, which had closed at 24,119.30, opened at 24,052.60 and further declined to 24,017.90, down 101.40 points or 0.42 percent at the same time.
Brent crude futures surged to a high of $115 during intraday trading before settling at $113.24, down 1.05 percent. Meanwhile, WTI crude was reported at $104.41, down 1.89 percent. On the Multi Commodity Exchange (MCX), May crude oil futures traded at ₹9,987, a decrease of 0.70 percent from the previous close of ₹10,057, while June futures were at ₹9,616, down 0.73 percent from ₹9,687. The surge in prices followed reports of missile and drone strikes near the UAE, alongside allegations of a US warship being targeted, with the Strait of Hormuz—responsible for approximately 20 percent of global oil supply—being central to the escalation.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that “the resumption of hostilities in the Hormuz region and Brent crude again spiking to around $113 are headwinds for the market. Moreover, the US 10-year bond yield rising to 4.44 percent and the rupee slipping to 95.23 present unfavorable conditions from the Foreign Portfolio Investment (FPI) flows perspective.”
The rupee fell for the fourth consecutive session, depreciating 18 paise to close at a record low on Monday, influenced by strong dollar strength and high crude prices. The yield on the 10-year US Treasury jumped to 4.44 percent, while the 30-year yield surpassed 5 percent for the first time in months, as traders abandoned hopes of a Federal Reserve rate cut in 2026.
On Wall Street, the Dow Jones dropped more than 550 points, while the S&P 500 and Nasdaq fell by 0.4 percent and 0.2 percent, respectively. Domestically, Foreign Institutional Investors (FIIs) were net buyers of approximately ₹2,835 crore on Monday, and Domestic Institutional Investors (DIIs) purchased ₹4,764 crore, providing a partial cushion amid the downturn.
Among Nifty50 gainers, energy major ONGC led, trading at ₹294.30, up 0.48 percent from its previous close of ₹292.90. Adani Ports increased by 0.42 percent to ₹1,749.90 from ₹1,742.60, while TCS gained 0.24 percent to ₹2,437.10. ITC edged up 0.23 percent to ₹311.80, and Reliance Industries rose 0.23 percent to ₹1,466.50.
On the losing side, Shriram Finance registered the largest drop, down 1.59 percent to ₹945.20 from ₹960.45. Bajaj Finance fell 1.42 percent to ₹936.70, while Maruti Suzuki decreased by 1.22 percent to ₹13,414. HDFC Bank slid 1.08 percent to ₹771, and Bajaj Finserv fell 1.07 percent to ₹1,751.40. The IT sector faced pressure, while the Auto sector displayed mixed trends, with Maruti being one of the sharpest decliners.
Gaurav Udani, Founder of Thincredblu Securities, observed, “23,900–24,000 remains immediate support, and holding this range is crucial to avoid further downside pressure. The upside has 24,300–24,400 acting as key resistance, likely attracting selling pressure.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, pointed to the 24,000/77,000 mark as a pivotal zone: “If these levels are exceeded, the market could maintain its positive momentum toward 24,300–24,400/77,700–78,000. Conversely, falling below the 20-day Simple Moving Average (SMA) or 24,000/77,000 may prompt the market to retest 23,800.”
The earnings season is now in focus, with results expected from Ambuja Cements, BHEL, Aditya Birla Capital, Godrej Properties, Larsen & Toubro, and Mahindra & Mahindra. Dr. Ravi Singh, Chief Research Officer at Master Capital Services, commented that “stocks that rallied in April for genuine reasons will maintain their positions, while those that capitalized on broader optimism without substantial backing will face challenges in justifying their valuations once earnings are reported.”
Globally, central banks from the Eurozone to Japan are exercising caution. The European Central Bank held rates steady amid war-related energy uncertainties, the Bank of England is likely to follow suit, and the Bank of Japan is becoming slightly hawkish as rising imported energy costs elevate inflation expectations. Meanwhile, China is experiencing slower industrial momentum, while stagflation risks are increasing throughout developing Asia-Pacific economies, which are grappling with fuel shortages.
Singh added a note of caution for retail investors: “Waiting for a significant drop before investing seems logical but rarely works. Time in the market is more important than timing the market.”
Additionally, today marks an F&O expiry session, which analysts predict will contribute to intraday volatility. India VIX remains elevated at approximately 18.3, indicating a reactive session ahead.
Published on May 5, 2026.
