Equities Hit Two-Month Lows as West Asia Tensions Trigger Risk-Off Selloff

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

June 8, 2026 at 11:56 AM IST

Indian equity benchmarks fell sharply on Monday, tracking weakness across Asian markets as escalating tensions in West Asia pushed oil prices higher and dampened investor sentiment. The Nifty50 declined 1.04% or 243.70 points to close at 23,123.00, while the BSE Sensex fell 719.08 points or 0.97% to settle at 73,524.26, with both indices ending at two-month lows.

Investor sentiment weakened after reports that Iran launched missiles toward Israel, raising fears of a wider regional conflict and undermining hopes of a peace agreement between Washington and Tehran. Brent Crude prices surged 4.3% toward $97 per barrel amid concerns over potential supply disruptions.

Selling pressure remained broad-based, with 15 of the 16 major sectors ending lower. Financial and IT stocks led the declines, while realty, metal and auto indices were among the worst-performing sectors. Defensive pockets such as healthcare and pharma showed relative resilience. Broader markets also witnessed heavy selling, with the Nifty MidCap and Nifty SmallCap indices falling 1.40% and 1.92%, respectively.

Market participants also tracked comments from Tuhin Kanta Pandey, who said the SEBI was working with the RBI to reduce registration and onboarding timelines for foreign portfolio investors.

Top Movers of the Day

Wipro closed around ₹181.6, down 8.4%, as weak global tech sentiment and profit‑taking in IT hammered the stock, making it the worst Nifty loser.

Jio Financial Services fell about 4% to ₹228.19 as risk‑off sentiment, FII selling and rate worries hit financials and broader markets.

Eternal dropped nearly 3.6% to ₹247.15 as investors exited high‑beta names amid global equity sell‑off and crude‑driven macro concerns.

Shriram Finance ended among the top Nifty laggards, down over 3% to ₹894.30, as rising bond yields and risk aversion pressured NBFCs and rate‑sensitive financials.

Hindalco Industries closed near ₹1,0653, down 3.6%, tracking weakness across metals as global growth worries and a sell‑off in cyclicals weighed on the Nifty Metal index.

National Aluminium Company finished around ₹376.3, down 4.9%, with metal stocks under broad pressure despite firmer aluminium futures, as risk‑off flows dominated sector positioning.

Muthoot Finance slid to about ₹2,953, down 6.35% and at an eight‑month low, as continued profit‑booking and a sharp correction from its 52‑week high hit sentiment in the gold‑loan lender.

Fineotex Chemical closed near ₹38.09, down 6.5%, despite announcing a major capacity expansion in its US unit, as the market used the news to book profits amid a weak tape.

Creative Newtech jumped to ₹722.30, up 14.5%, after winning a large ₹3,195‑crore BSNL BharatNet project in Odisha, sparking a volume surge over 60x its usual turnover.

EMS rallied to about ₹325, up 11.7%, after emerging L‑1 bidder for a ₹102.8‑crore UP Jal Nigam urban water project, triggering aggressive buying in the small-cap.

Max Healthcare gained around 2.9% to ₹1,006.05 as defensive healthcare stocks outperformed on a risk‑off day and investors rotated from cyclicals into hospitals and pharma.

Power Grid Corporation ended at ₹290, up 1.5% and was among Nifty’s top gainers, supported by its defensive, regulated business profile as markets sold off high‑beta and rate‑sensitive sectors.

Futures & Options
Nifty June 2026 futures closed at 23,147.10, a premium of 24.1 points over the spot Nifty 50 close of 23,123, indicating cautious positioning amid heightened geopolitical tensions. In the cash market, the Nifty 50 declined 243.70 points or 1.04%, while India VIX surged 7.85% to 17.03, reflecting a sharp rise in market volatility expectations.

Among stock futures, HDFC Bank, TCS and Reliance Industries were the most actively traded contracts in the NSE F&O segment. The June 2026 derivatives series will expire on 30 June 2026.

Bonds
India’s government bond benchmark yields ended marginally lower on Monday despite early pressure from rising oil prices and renewed geopolitical tensions in West Asia, as supportive RBI measures continued to underpin sentiment. The benchmark 6.48% 2035 government bond yield ended at 6.9558%, compared with 6.9772% after Friday’s RBI policy decision. The new benchmark 6.94% GS 2036 yield also eased to 6.9558% from 6.9651% previously.

Bond markets initially weakened after fresh escalation in the US-Iran conflict pushed Brent Crude prices higher, but sentiment remained supported by the RBI’s recent measures aimed at attracting foreign capital into government securities.

Forex
Indian rupee sharply reversed Friday’s rally on Monday as rising oil prices, fragile global risk sentiment and renewed expectations of a US Federal Reserve rate hike weighed on the domestic currency. The rupee ended 0.8% lower at 95.7075 against the US dollar, marking its steepest single-session decline in four weeks. The fall came after the currency had posted its strongest gain in two months during the previous session following the RBI’s measures to attract foreign capital and support the balance of payments.

Investor sentiment weakened again as Brent Crude prices moved higher amid escalating tensions in West Asia, while stronger US economic data increased expectations of another Federal Reserve rate hike later this year.

Crypto
Crypto markets staged a relief rebound on Monday after sharp weekend losses, although sentiment remained fragile amid continued macroeconomic and geopolitical uncertainty. Bitcoin reclaimed the $63,000 level after briefly slipping below $60,000 over the weekend. The cryptocurrency rose toward an intraday high of around $63,700 before trimming some gains, with traders continuing to monitor persistent spot Bitcoin ETF outflows and broader risk sentiment.

Ethereum also recovered sharply, rising around 5.6% to trade near $1,720 as major altcoins tracked Bitcoin’s rebound. The recovery was largely driven by oversold buying after recent heavy liquidation-driven declines, though volatility remained elevated due to concerns around global interest rates and escalating tensions in West Asia.

US Stock Futures
US stock futures traded higher early Monday as technology shares rebounded following Friday’s sharp selloff, while investors continued to monitor fragile ceasefire developments between Iran and Israel. Futures linked to the S&P 500 rose 0.40%, while Nasdaq-100 futures gained 0.75%. Futures tied to the Dow Jones Industrial Average were marginally lower.

Chip stocks led the recovery in premarket trade. Micron Technology rose more than 3% after plunging 13% in the previous session, while NVIDIA and Broadcom also traded higher as investors returned to AI-linked technology names.

US Treasury Notes
US Treasury yields rose sharply on Monday, extending last week’s selloff after strong US labour market data reinforced expectations that the Federal Reserve could keep interest rates elevated for longer. The benchmark 10-year Treasury yield climbed above 4.542%, while the policy-sensitive 2-year Treasury yield rose toward 4.156% as traders increased bets on a possible Fed rate hike later this year.

Bond markets continued to react to Friday’s stronger-than-expected nonfarm payrolls report, which showed the US economy added 172,000 jobs in May, strengthening confidence in economic resilience despite tighter financial conditions.

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