Equities Slip as Oil Surge and Rupee Weakness Weigh on Sentiment

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

May 5, 2026 at 11:40 AM IST

Indian equities ended lower on Tuesday as elevated crude oil prices and a record-low rupee dampened investor sentiment amid escalating tensions in West Asia. The Nifty50 declined 0.36% to 24,032.80, while the BSE Sensex fell 0.33% to 77,017.79. The rupee weakened to a fresh all-time low of 95.4325 per US dollar.

Investor concerns intensified after Brent Crude surged above $115 per barrel following renewed attacks in the Strait of Hormuz, before easing slightly to around $113. Elevated oil prices continued to raise fears of higher inflation, pressure on India’s external balances and slower economic growth. Escalating hostilities between the US and Iran, including attacks on ships and infrastructure, further added to market uncertainty.

Sectorally, banking, realty and oil & gas stocks led the decline, while auto and FMCG stocks showed relative resilience. Broader markets outperformed, with mid-cap and small-cap indices rising modestly. The overall tone remained cautious as investors tracked geopolitical developments and their potential impact on global growth and domestic macro stability.

Top Movers of the Day

Tata Technologies gained 6.1% to ₹627.50 after reporting steady Q4FY26 earnings, with investor sentiment supported by resilient deal wins and outlook commentary.

Wockhardt surged sharply 8.77% to ₹1,550 after positive developments around its drug pipeline and improving business outlook.

Tata Motors saw mixed moves and ended down 0.71% to ₹340.60 as elevated crude oil prices continued to cloud margin outlook despite steady demand trends.

Kotak Mahindra Bank ended 0.01%to ₹371.60 under pressure amid concerns over margins and asset quality following recent earnings.

Avenue Supermarts (DMart) remained weak to end at ₹4,340 down 0.83% after Q4 results as margin concerns and valuation pressures weighed on sentiment.

Navin Fluorine International gained over 3.04% to ₹7,003 after hitting a lifetime high of ₹7,200 in the previous session, extending its strong rally with over 51% gains since September 2025.

Omax Autos, Dynacons Systems & Solutions and HFCL surged up to 20% each, hitting their respective 52-week highs amid strong buying interest.

Emcure Pharmaceuticals fell 5.81% to ₹1,689 despite reporting a 36.0% YoY increase in Q4FY26 net profit to ₹2.79 billion, with revenue growing 16.7% YoY to ₹24.7 billion.

Anuh Pharma gained around 6.1% to ₹84.6 after receiving WHO prequalification for its anti-malarial API.

Titagarh Rail Systems jumped 13.0% to ₹870 on strong buying momentum

Quess Corp rose 8.1% to ₹228.65 after hitting an intraday high of ₹237.9, supported by investor interest in the staffing and services segment.

Ather Energy surged 5.2% to a 52-week high of ₹982.35 after reporting narrowing losses driven by improved unit economics and volume growth.

Ambuja Cements declined nearly 3% to ₹432.20 after reporting weaker-than-expected Q4FY26 results, which weighed on investor sentiment.

Futures & Options
Nifty May 2026 futures closed at 24,128, a premium of 95.20 points over the spot Nifty 50 close of 24,032.80, indicating continued positive positioning in the derivatives segment despite weakness in the cash market. The Nifty 50 declined 86.50 points or 0.36%. Volatility eased, with India VIX slipping 2.14% to 17.91. In the F&O segment, Mahindra & Mahindra, HDFC Bank and Reliance Industries were the most actively traded stock futures contracts. The May 2026 derivatives series will expire on 26 May 2026.

Bonds
India's government bond yields remained under pressure on Tuesday, with the benchmark 10-year yield marking its sixth consecutive session of losses amid escalating US-Iran tensions and rising crude oil prices. The benchmark 6.48% 2035 bond yield ended at 7.0184%, largely unchanged from 7.0194% in the previous session, but reflecting sustained bearish sentiment.

The sell-off was driven by a sharp rise in Brent Crude prices, which climbed around 6% to $114 per barrel before easing slightly. Renewed hostilities in the Strait of Hormuz heightened concerns over inflation and India’s macro stability. Meanwhile, higher US yields, with the 10-year Treasury rising nearly 7 basis points, added to pressure on domestic bonds as investors reassessed global interest rate and risk dynamics.

Forex
Indian rupee weakened to a new record low on Tuesday as renewed US-Iran hostilities around the Strait of Hormuz heightened concerns over global energy supplies and inflation. The currency touched an intraday low of 95.4325 per US dollar before recovering slightly to close at 95.28.

Pressure on the rupee was driven by rising geopolitical risks and elevated Brent Crude prices, which continue to threaten India’s inflation outlook and external balances. Traders also cited demand for dollars amid heightened uncertainty in global markets.

Intervention by state-run banks, likely on behalf of the Reserve Bank of India, helped limit further losses, with dollar sales seen near the 95.50 psychological level to stabilise the currency.

Crypto
Crypto markets showed a mixed trend as geopolitical tensions and rising oil prices weighed on broader risk sentiment, while select large-cap tokens displayed resilience. Bitcoin gained 0.58% to trade near $80,792, holding above the key $80,000 level with a market capitalisation exceeding $1.6 trillion and strong trading volumes of around $48 billion.

In contrast, Ethereum slipped 0.41% to $2,379 as most major altcoins traded in the red. Sentiment remained cautious as Brent Crude prices surged past $115 per barrel amid tensions near the Strait of Hormuz, triggering risk aversion and pressure across global financial markets, including cryptocurrencies.

US Stock Futures
US stock futures moved higher on Tuesday, recovering from the previous session’s declines as investors reassessed geopolitical risks linked to the Middle East conflict. Futures tied to the S&P 500 rose 0.4%, while Nasdaq-100 futures gained 0.6%. Futures linked to the Dow Jones Industrial Average advanced 132 points, or 0.3%.

The rebound reflects cautious bargain buying after recent weakness, although sentiment remains sensitive to developments in West Asia and their potential impact on energy prices, inflation and global growth.

US Treasury Notes
Yields on US Treasury remained elevated in early Tuesday trading as investors weighed persistent inflation concerns and rising geopolitical tensions in West Asia. The benchmark 10-year Treasury yield hovered around 4.434%, reflecting pressure from higher energy prices and cautious sentiment in global bond markets. The shorter-duration 2-year Treasury yield held near 3.94%, keeping the yield curve relatively flat as markets assessed expectations around future monetary policy. Recent weak demand at Treasury auctions and a growing consensus that the Federal Reserve may maintain a “higher-for-longer” rate stance continued to underpin yields.

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