The Indian stock market continued its decline in afternoon trade, with benchmark indices extending their weakness for a third consecutive session. According to latest reports, the S&P BSE Sensex declined 532.72 points or 0.68% to 77,311.80, while the Nifty 50 index fell 149.35 points or 0.62% to 24,177.60 as of 13:25 IST. Banking and oil & gas shares faced significant selling pressure, while IT, media and FMCG sectors showed resilience with gains. However, broader markets maintained strength with the BSE 150 MidCap Index shedding just 0.09% and the BSE 250 SmallCap Index rising 0.38%. Market breadth remained positive with 2,033 shares rising and 2,047 shares falling on the BSE, while the NSE's India VIX rallied 3.27% to 17.17, indicating heightened volatility expectations. Technical analysts note that the Nifty has moved below the 50 EMA on the intraday timeframe with the RSI re-entering a bearish crossover, suggesting further correction potential if the index sustains below 24,200 levels.
The Strait of Hormuz crisis escalated further after President Donald Trump threatened 'much higher' tariffs against the European Union (EU) and reportedly claimed the U.S. "completely destroyed" Iranians involved in recent exchanges. According to latest reports, Trump has reiterated that Iran will face further attacks if they do not agree to a nuclear deal, while maintaining that the ceasefire remains in effect despite the escalation. The past few days witnessed some of the most intense clashes in and around the Strait of Hormuz since the ceasefire took effect last month, with the United Arab Emirates again targeted in fresh attacks on Friday. Meanwhile, Washington is still waiting for Tehran's response to a U.S.-backed framework aimed at formally ending the conflict before broader negotiations begin on contentious issues such as Iran's nuclear ambitions. Speaking in Rome on Friday, Secretary of State Marco Rubio said the U.S. expected Iran's reply later that day, though an Iranian foreign ministry spokesperson indicated Tehran was continuing to evaluate the proposal.
Brent crude for June 2026 settlement added 0.19% or $0.19 per barrel to $101.29, showing continued volatility amid geopolitical tensions. The commodities market remains sensitive to developments in the US-Iran conflict, with oil prices recovering from earlier losses as traders monitor for further escalation. US WTI crude oil futures ended at $94.68 per barrel on Friday, dropping $0.13 or 0.14% in a single session. Despite Friday's rebound, both Brent crude and US West Texas Intermediate crude posted weekly losses of over 6%. According to Enrich Money, Brent crude oil trading in the $94–99 per barrel range will remain a critical macro variable for market direction. The ongoing West Asia crisis has pushed crude oil prices above $100 per barrel, a critical threshold that adds approximately $13-14 billion to India's annual import bill for every $10 increase in oil prices, directly impacting inflation and external balances.
April witnessed record retail participation in Indian equities, with 20% year-on-year growth in client numbers and a 35.8% surge in margin funding utilization. This substantial retail investor participation, bolstered by consistent Systematic Investment Plan (SIP) inflows often exceeding ₹30,000 crore monthly, highlights a structural shift in the investor base. Younger demographics and increased female participation are reshaping the market. However, this domestic strength contrasts sharply with persistent foreign portfolio investor (FPI) outflows, with FPIs divesting equities worth approximately ₹60,847 crore in April alone, contributing to cumulative outflows exceeding ₹1.92 lakh crore in the first four months of 2026. On Friday specifically, FIIs sold domestic shares to the tune of ₹4,110.60 crore while domestic institutional investors (DIIs) were net buyers at ₹6,748.13 crore. This trend far surpasses the ₹1.66 lakh crore exit recorded for the entirety of 2025. Domestic Institutional Investors (DIIs) have actively absorbed foreign selling, investing over ₹3 lakh crore in equities year-to-date in 2026, helping cushion market volatility.
As the earnings season enters the fifth week, India Inc. demonstrated resilience with aggregate net profit surging 14% year-on-year in Q4 FY26, supported by revenue growth of about 17% when excluding the Banking, Financial Services, and Insurance (BFSI) sector. The BFSI sector itself reported 14% revenue growth and 18% adjusted net profit growth. However, underlying cost pressures emerged with gross margins across the ex-BFSI universe contracting by 68 basis points year-on-year to 57.2%, indicating supply chain challenges from the Middle East conflict. Companies managed to keep operating profit margins steady by spreading fixed costs over higher volumes, though this strategy may prove less effective if cost pressures escalate further. Thermax surged 12.51% after reporting consolidated profit after tax of ₹244.28 crore in Q4 FY26, up 18.74% from ₹205.73 crore in Q4 FY25, while Thyrocare Technologies rallied 5.82% with consolidated net profit surging 117.14% to ₹47.12 crore on 19.66% revenue growth to ₹223.95 crore. This week's earnings focus includes major companies like Tata Motors, PVR Inox, Tata Power, Nazara Technologies, SAIL, MTAR Technologies, Canara Bank, Fractal Analytics and Indian Hotels Company (IHCL).
