Markets opened sharply lower on Friday morning, with both benchmark indices sliding nearly half a percent in early trading. Renewed military exchanges between the United States and Iran near the Strait of Hormuz impacted global sentiment, resulting in crude oil prices surging above $101 per barrel.
The Sensex, which closed at 77,844.52 on Thursday, opened at 77,631.94, slipping further to 77,472.60, down 371.92 points or 0.48 percent by 9:20 am. The Nifty 50 began the day at 24,233.65, down from its previous session close of 24,326.65 to 24,210.80, a decline of 115.85 points or 0.48 percent.
This sell-off followed a nearly flat session on Thursday, where the Nifty decreased by only 4.30 points or 0.02 percent and the Sensex fell by 114 points or 0.15 percent, indicating that overnight geopolitical developments quickly undermined the previous day’s cautious stability.
Brent crude futures were trading at $101.13 per barrel, reflecting an increase of 1.07 percent, while WTI crude rose by 0.82 percent to $95.59. On the domestic Multi Commodity Exchange, May crude oil futures traded at ₹9,032, down 0.36 percent from the previous close of ₹9,065.
“The ongoing US–Iran conflict remains a significant overhang for global markets, fuelling headline-driven volatility and keeping investor sentiment fragile,” said Ponmudi R, CEO of Enrich Money. “Any significant progress in diplomatic negotiations or a further easing in oil prices could trigger a relief rally, whereas an escalation in geopolitical tensions may amplify downside risks.”
Top Gainors and Losers
Among the top gainers in early trade on the Nifty 50, Tata Consumer Products rose 1.34 percent to ₹1,167.10, Asian Paints also increased by 1.34 percent to ₹2,564.50, Tech Mahindra advanced 1.13 percent to ₹1,464.60, Wipro gained 0.65 percent to ₹198.64, and Infosys edged up 0.60 percent to ₹1,169.70, reversing the previous session’s weakness in the IT sector.
On the decline side, Coal India was the top loser, falling 1.75 percent to ₹458.50. Mahindra & Mahindra decreased by 1.30 percent to ₹3,327, Axis Bank slipped 1.18 percent to ₹1,277.40, HDFC Bank fell 1.16 percent to ₹786.80, and Tata Motors (TMPV) dropped by 1.10 percent to ₹355.30.
“FIIs are net sellers, particularly in banking and IT heavyweights, and this contrast between broader market outperformance and Nifty underperformance will persist as long as FPIs remain net sellers,” stated Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Fund flow data corroborated this trend, showing that foreign institutional investors sold a net ₹340.89 crore on Thursday, leading to month-to-date outflows of ₹6,961.75 crore and year-to-date net selling totaling ₹2,47,713.62 crore. In contrast, domestic institutional investors purchased ₹441.07 crore on Thursday, with year-to-date inflows at a robust ₹3,16,312.81 crore.
Sector-wise, Thursday’s session saw Nifty Auto leading gains at 1.93 percent, followed by Nifty Energy at 0.82 percent and Nifty Realty at 0.63 percent. Nifty IT and Nifty FMCG emerged as the day’s poor performers, declining by 0.77 percent and 0.76 percent, respectively.
Technicals
Analysts indicated that 24,200 has now become a critical support level for the Nifty. “Falling below this could quickly push the index toward 24,000. Bulls need a daily close above 24,400 to regain upward momentum,” remarked Rajesh Palviya, Head of Research at Axis Direct.
The Nifty Put-Call Ratio stood at 1.08, easing from 1.19 in the previous session. The India VIX declined by 0.34 percent to 16.62, marking its fourth consecutive session of decline, although analysts cautioned that this did not reflect reduced geopolitical risk.
The key market event for Friday was the release of the US Nonfarm Payrolls data for April, which analysts noted could further shape global risk sentiment and influence the direction of the dollar and bond yields throughout the day.
Published on May 8, 2026
