Closing Bell : Sensex Drops 516 Points as US-Iran Tensions Flare Up and Banking Stocks Drag Markets Lower

8 May 2026 , 06:22 PM

The Indian benchmark indices ended lower on May 8, 2026, with Nifty slipping to 24,176 and Sensex shedding over 516 points to close at 77,328. Renewed US-Iran hostilities near the Strait of Hormuz dashed hopes of a ceasefire, sending fresh shockwaves through global markets and reviving crude oil price concerns. Heavy selling in banking stocks, led by SBI’s sharp 6.74% post-results decline, kept markets under pressure through the session. 

Market Overview: Nifty, Sensex, and Bank Nifty Performance

• Nifty 50 closed at 24,176.15 down 150.50 points (0.62%) 

• Sensex ended at 77,328.19, down 516.34 points (0.66%) 

• Nifty Bank settled at 55,310.55, down 736.85 points (1.31%) 

Top Gainers 

1. Apollo Hospitals Enterprise Limited– closing at 8,105.00 up by 3.42% 
2. Tata Consumer Products Limited– closing at 1,176.60 up by 2.16% 
3. Adani Ports and Special Economic Zone Ltd– closing at 1,760.00 up by 1.57% 

Top Losers  

1. HDFC Bank Limited – closing at781.00 down by 89% 
2. Bajaj Finance Limited– closing at 954.50 down by 1.88% 
3. Axis Bank Limited– closing at 1,270.00 down by 1.76% 

Trending stocks  

1. Titan Company Limited–  

• Closed at ₹4,517.00, up 4.68%  

• Shares of Titan Company surged over 5%, hitting a 52-week high after strong Q4 FY26 results.  

• Strong Earnings Growth: Net profit jumped 35% YoY to ₹1,179 crore, while revenue surged 46% to ₹20,300 crore.  

• Jewellery Demand Remained Strong: Robust performance in the jewellery business despite high gold prices boosted investor confidence.  

• Expansion Momentum: Titan added new Tanishq, Mia, and Carat Lane stores, while acquisition of 67% stake in Damas Jewellery strengthened its GCC presence.  

• Dividend Boost: Company announced a ₹15 per share dividend, supporting positive market sentiment. 

 

     2. Asian Paints Limited–  

• Closed at ₹2,600.00, up 2.74%  

• Shares of Asian Paints rose around 2–3%.  

• Brokerage Upgrade Boost: Rally followed a positive sector outlook from Investec, which upgraded its stance on paint companies.  

• Margin Recovery Hopes: Expectations of better pricing power and reduced promotional spending improved profitability outlook.  

• Sector-Wide Rally: Other paint stocks like Berger Paints India and Kansai Nerolac Paints also gained, reflecting positive sentiment across the sector. 

 

3. State Bank of India–

• Closed at ₹1,018.40, down 6.74%  

• Shares of State Bank of India fell over 6% after weaker-than-expected Q4 FY26 results.  

• Earnings Miss: Net profit rose only 5.5% YoY to ₹19,684 crore, missing Street estimates and disappointing investors.  

• Margin Pressure: Domestic Net Interest Margins (NIMs) contracted, reflecting higher funding costs.  

• Weak Operating Performance: Operating profit declined 11–16% YoY, while treasury income dropped sharply due to rising bond yields.  

• Asset Quality Concerns: Higher sequential slippages (fresh bad loans) and weaker sequential NII growth weighed on sentiment. 

 

4. Coal India Limited–

• Closed at ₹457.00, down 2.07%  

• Shares of Coal India Limited fell around 2% amid reports of a possible government stake sale.  

• OFS Concerns: Investor sentiment weakened after reports that the government may launch an Offer for Sale (OFS) of 3–4% stake worth nearly ₹10,000 crore.  

• Discount Fears: Market reacted negatively to expectations that shares could be offered at a discount to current market price.  

• Despite Strong Results: The decline came even after Coal India reported 11% YoY rise in Q4 profit to ₹10,839 crore and announced a ₹5.25 dividend. 

 

Sectoral Indices Performance

Indices	Change
Nifty PSU Bank	-3.06%
Nifty Oil & Gas	-0.94%
Nifty Metal	-0.87%
Nifty Energy	-0.84%
Nifty Private	-0.82%
Nifty Financial Services Ex-Bank	-0.60%
Nifty IT	1.21%
Nifty Consumer durables	0.69%
Nifty FMCG	0.19%

 

Banking and financial stocks were the biggest drag on the market, with Nifty PSU Bank falling 3.06% and Nifty Private Bank declining 0.82% amid rising global uncertainty and FII outflows. Oil-linked sectors such as Nifty Oil & Gas (-0.94%) and Nifty Energy (-0.84%) also remained under pressure due to rising crude oil prices. Metal stocks weakened, with Nifty Metal down 0.87%, reflecting cautious global sentiment. However, export-oriented sectors like Nifty IT (+1.21%) outperformed as investors preferred defensive technology stocks amid market volatility. FMCG and Consumer Durables also showed relative resilience due to defensive buying interest. 

• Rising US-Iran Geopolitical Tensions –
  Renewed hostilities between the US and Iran shattered hopes of an imminent ceasefire. Fresh conflict escalation between the US and Iran near the Strait of Hormuz increased global uncertainty and weakened investor sentiment across markets.
• Crude Oil Prices Moved Higher –
  Oil prices rose over 1% amid fears of supply disruptions in the Middle East, rising oil prices directly impact India’s import bill, fuel inflation concerns, and squeeze corporate margins across sectors.
• Continued FII Selling Pressure –
  Foreign Institutional Investors (FIIs) continued to sell Indian equities, putting pressure on large-cap banking and financial stocks.
• Banking Stocks Dragged the Market Lower –
  Heavy selling in PSU and private banking stocks weighed on the indices, making financials one of the weakest sectors of the session. 

 

Summary-

May 8, 2026, reflected a weak and risk-off market trend: 

• Banking and financial stocks led the decline, impacted by FII selling and weak earnings sentiment
• Oil & Gas and Metal sectors remained under pressure, as rising crude oil prices and geopolitical tensions hurt investor confidence
• IT, FMCG, and Consumer Durable stocks showed resilience, supported by defensive buying and export-oriented strength 

With Nifty falling 150.50 points (-0.62%) and Sensex declining 516.34 points (-0.66%), market sentiment weakened amid escalating US-Iran tensions, rising crude oil prices, continued foreign outflows, and pressure on banking stocks.