SENSEX drops 252 points, NIFTY50 settles below 24,050 as tensions escalate in Middle East

The Indian equity benchmarks ended lower on Tuesday, May 5, as investor sentiment was dented after tensions in Middle East escalated after Iran attacked UAE with a barrage of missiles and drones, setting an oil refinery ablaze in the eastern emirate of Fujairah leading to surge in crude oil prices in global markets.

The SENSEX fell as much as 754 points and NIFTY50 index broke below its important psychological level of 23,900 dragged down by losses in index heavyweights like HDFC Bank, State Bank of India, ICICI Bank, Larsen & Toubro and Reliance Industries.

The SENSEX ended 252 points lower at 77,017 and NIFTY50 index declined 86 points to close at 24,033.

European markets were trading on a mixed note following spike in crude prices. Germany's DAX rose nearly 1%, French CAC40 index advanced 0.7% while England's FTSE100 index declined 1%.

Back home, eight of 15 major sector gauges compiled by the National Stock Exchange ended lower led by the NIFTY Realty index's 1.4% fall. NIFTY Consumer Durables, Private Bank, Bank, Financial Services, PSU Bank and Oil & Gas indices also declined between 0.3% and 0.7%.

On the flip side, auto, FMCG, pharma and healthcare shares witnessed buying interest.

Broader markets outperformed their larger peers as NIFTY Midcap 100 index rose 0.2% and NIFTY Smallcap 100 index gained 0.3%.

Aditya Birla Capital was top gainer in the NIFTY Midcap 100 index, the stock rose 4.24% to close at ₹360 after the firm posted a 30.6% year-on-year (YoY) increase in its consolidated net profit (attributable to the owners of the company) to ₹1,129.16 crore for the reporting quarter.

In the corresponding period of the 2024-25 fiscal year (Q4 FY25), it had clocked a profit of ₹864.60 crore, according to a regulatory filing.

ICICI Bank was top loser in the NIFTY50 index, the stock fell 1.6% to end at ₹1,251. Jio Financial Services, Coal India, Tech Mahindra, Axis Bank, Dr Reddy's Labs, JSW Steel and Eternal also fell between 1% and 1.5%.

On the other hand, Mahindra & Mahindra was top gainer in the NIFTY50 index, the stock advanced 3.7% after it reported a 53% jump in its standalone net profit at ₹3,737 crore for the quarter ended March 31, 2026, as compared to ₹2,437 crore in the same quarter of the financial year 2025-26.

UltraTech Cement, Hindalco, Bajaj Finserv, HDFC life, Nestle India, Bajaj Finance and Infosys also rose between 0.8% and 1.5%.

The overall market breadth was neutral as 1,680 shares ended lower while 1,604 closed higher on the NSE.