Indian Markets Slip as West Asia Tensions Shake Investor Confidence

Mumbai, May 8 (BNP): Indian equity markets opened lower on Friday as rising tensions between the United States and Iran unsettled global investors and pushed crude oil prices sharply higher. The cautious mood across international markets weighed on domestic sentiment, dragging benchmark indices into the red during early trade.

The BSE Sensex declined more than 500 points in the morning session, touching an intraday low of 77,291.72, while the NSE Nifty50 dropped nearly 170 points to trade around 24,158.

Selling pressure was visible across banking, automobile, and oil-linked stocks. Private and PSU banking counters were among the biggest drags, alongside auto majors such as Mahindra & Mahindra, Tata Motors, Maruti Suzuki, and Eicher Motors. Financial stocks including HDFC Bank, ICICI Bank, Axis Bank, and Shriram Finance also traded lower.

Despite the weak broader sentiment, defensive sectors offered some support to the market. IT, pharmaceutical, healthcare, and chemical stocks managed to stay in positive territory as investors looked for relatively safer bets amid rising uncertainty.

Market analysts said investors remain nervous due to the continuing “escalation-de-escalation” cycle in West Asia, which has kept oil prices volatile and global markets on edge.

Experts also pointed out that India’s broader market continues to show resilience despite geopolitical worries. The Nifty Midcap index recently touched record highs, reflecting sustained investor interest in mid-sized companies even as valuations remain elevated.

The latest round of tensions emerged after Iran accused the United States of breaching a month-long ceasefire agreement. Tehran claimed that American forces targeted oil tankers and civilian locations near the Strait region following naval confrontations on Thursday. Washington, however, described the military action as retaliatory after alleged attacks on US naval vessels.

US President Donald Trump said the ceasefire was still in place and added that Washington was waiting for Iran’s response to a fresh peace proposal.

The geopolitical uncertainty triggered a fresh rally in oil prices. Brent crude climbed nearly 3 per cent to trade above $102 per barrel, while US West Texas Intermediate (WTI) crude surged around 4 per cent to nearly $99 per barrel.

Asian markets also reflected the cautious sentiment, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI trading lower during the session.

On Wall Street overnight, US markets ended modestly weaker, with the S&P 500 slipping 0.38 per cent and the Nasdaq closing 0.13 per cent lower.