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Markets end in green; weekly gains restricted amid fresh Strait of Hormuz tensions
May-08-2026

Indian equity benchmarks ended the volatile week of trade in positive terrain on reports of US nearing to end war with Iran. However, gains remained capped as fresh tensions flared in the Strait of Hormuz region and the ceasefire between the US and Iran came under strain. The rupee hitting a record low against the US dollar also made investors cautious. 

Some of the major developments during the week are:

Govt’s net direct tax collection rises 5.12% in FY26: Data released by the Central Board of Direct Taxes (CBDT) showed that the government's net direct tax collections grew 5.12 per cent to over Rs 23.40 lakh crore in 2025-26, but missed the revised target set for the fiscal year that ended March 2026.

India manufacturing growth picks up in April: India’s manufacturing sector growth improved in the month of April 2026, but still marking the second-slowest improvement in operating conditions in nearly four years. The seasonally adjusted HSBC India Manufacturing PMI rose to 54.7 in April from 53.9 in March.

S&P Global lowers India's FY27 GDP growth estimates to 6.6%: S&P Global in its latest ‘India Forward’ report, jointly done with Crisil, has lowered India's Gross Domestic Product (GDP) growth estimates for the current financial year (FY27) to 6.6 per cent from 7.1 per cent projected earlier.

India, Canada begin next round of FTA talks: The report said that India and Canada started second round of negotiations for a free trade agreement aimed at boosting two-way commerce and investments.

FTAs to help boost exports, generate jobs: Commerce and Industry Minister Piyush Goyal said the free trade agreements (FTAs) finalised by India in the last three and a half years will help provide duty-free access to domestic goods, boost the country's exports and generate lakhs of jobs for people.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 414.69 points or 0.54% to 77,328.19 during the week ended May 08, 2026. On the sectoral front, S&P BSE Auto was up by 2,792.45 points or 4.88% to 59,963.44, S&P BSE Realty was up by 282.76 points or 4.61% to 6,410.43, and S&P BSE Healthcare was up by 1,920.11 points or 4.30% to 46,534.89 were the top gainers, while S&P BSE Oil & Gas was down by 269.68 points or 0.97% to 27,413.86, S&P BSE TECK was down by 86.21 points or 0.57% to 14,937.28, and S&P BSE PSU was down by 40.93 points or 0.19% to 21,838.29 were the few losers on the BSE.

NSE movement for the week

The Nifty surged 178.60 points or 0.74% to 24,176.15. On the National Stock Exchange (NSE), Nifty Mid Cap 100 increased 2126.05 points or 3.56% to 61,910.90, Nifty Next 50 gained 1851.70 points or 2.66% to 71,495.60, Bank Nifty was up by 447.20 points or 0.82% to 55,310.55, and Nifty IT was up by 40.30 points or 0.14% to 29,394.20.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 79,541.33 crore and gross sales of Rs 93,772.57 crore, leading to a net outflow of Rs 14,231.24 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 14,072.23 crore against gross sales of Rs 9,688.44 crore, resulting in a net inflow of Rs 4,383.79 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 97.51 crore and gross sales of Rs 209.79 crore, leading to a net outflow of Rs 112.28 crore.

Industry and Economy

S&P Global in its latest ‘India Forward’ report, jointly done with Crisil, has lowered India's Gross Domestic Product (GDP) growth estimates for the current financial year (FY27) to 6.6 per cent from 7.1 per cent projected earlier. It noted that structural reforms in energy and food security would be essential to achieve the vision of Viksit Bharat by 2047. It said India is facing significant economic pressure due to West Asia conflicts, disrupting energy supplies, elevating oil and gas prices and currency volatility. It added that India must develop comprehensive energy storage policy to create strategic buffers. Crisil Chief Economist Dharmakirti Joshi said ‘as the duration of the West Asia crisis rises, we see newer stress points emerge.

Outlook for the coming week

In the passing week, Indian equity markets ended higher supported by a better-than-expected Q4 earnings and softer crude oil prices.

On the economy front, market-participants would be eyeing the Consumer Price Index (CPI) and Wholesale Price Index (WPI), scheduled to be release in coming week. Passenger Vehicles Sales data, Bank Loan Growth data, Deposit Growth data, Exports & Imports data and Foreign Exchange Reserves data are scheduled to be release on May 15.

In the ongoing result season, traders will be eyeing earnings of prominent companies, including Canara Bank, Indian Hotels Company, UPL, Shyam Metalics & Energy, Syrma SGS Technology, The Tata Power Company, Bharat Petroleum Corporation, Dr Reddys Laboratories, Dixon Technologies, Bharti Airtel and TVS Motor Company etc.

On the global front, traders will be eyeing various U.S. economic data i.e. existing home sales on May 11 followed by Consumer price index, Monthly U.S. federal budget on May 12, Producer price index on May 13, U.S. retail sales, Initial jobless claims, Import price index, Business inventories and Federal Reserve Governor Michael Barr speech on May 14, Industrial production and Home builder confidence index on May 15.

Top Gainers 

  • Mahindra & Mahindra up by 7.52% was the top gainer on Nifty for the week - M&M caught investors’ attention on reporting 41.65% rise in its consolidated net profit at Rs 4,667.57 crore for Q4FY26 as compared to Rs 3,295.17 crore for the same quarter in the previous year. Total income of the company increased by 29.27% at Rs 55,976.75 crore for Q4FY26 as compared to Rs 43,301.04 crore for the corresponding quarter previous year.
  • Shriram Finance up by 7.51% was another top gainer on Nifty for the week - Shriram Finance continued trade higher post its Q4 numbers. The company the company has reported 40.92% jump in its consolidated net profit at Rs 3,020.94 crore for Q4FY26 as compared to Rs 2,143.77 crore for the same quarter in the previous year.

Top Losers 

  • Oil & Natural Gas Corporation down by 6.79% was the top loser of the week on Nifty - ONGC came under pressure along with other oil exploration and production (E&P) companies after prices Brent crude oil retreated to trade near $100 a barrel mark. The global crude oil prices have declined amid hopes of peace deal between US and Iran to end the war in West Asia.
  • Coal India down by 5.20% was another top loser of the week on Nifty - Coal India traded lower as investors turned cautious amid reports suggesting that Government may divest its 3 to 4% stake, worth Rs around Rs 10,000 crore, in the company through an offer for sale (OFS).

Technical viewpoints

During the week, CNX Nifty touched the highest level of 24,482.10 on May 7 and lowest level of 23,796.85 on May 5. On the last trading day, the Nifty closed at 24,176.15 with weekly gain of 178.60 points or 0.74 percent. For the coming week, 23,821.30 followed by 23,466.45 are likely to be good support levels for the Nifty, while the index may face resistance at 24,506.55 and further at 24,836.95 levels.

US Market

The U.S. markets traded higher during the week following private report said that the United States and Iran are moving closer to an agreement on a short memorandum ⁠to end the Iran war.

Some of the major developments during the week are:  

U.S. construction spending climbs in March: Construction spending climbed by 0.6 percent to an annual rate of $2.185 trillion in March after slipping by 0.2 percent to an annual rate of $2.173 trillion in February.

Weekly jobless claims in U.S. rise in week ended May 2: The Labor Department said initial jobless claims rose to 200,000, an increase of 10,000 from the previous week's revised level of 190,000.

Labor productivity in U.S. climbs in Q1: Labor productivity climbed by 0.8 percent in the first quarter of 2026 after jumping by a downwardly revised 1.6 percent in the fourth quarter of 2025.

U.S. services index indicates slightly slower growth in April: The Institute for Supply Management (ISM) said its services PMI slipped to 53.6 in April after falling to 54.0 in March, although a reading above 50 still indicates growth. 

Private sector employment in U.S. jumps in April: Private sector employment shot up by 109,000 jobs in April after climbing by a downwardly revised 61,000 jobs in March.

European Market

European markets exhibited mixed trend during the passing week, as escalating U.S.-Iran tensions curbed investors' appetite for riskier assets.

Some of the major developments during the week are:

French trade gap widens in March: The data from the customs office revealed that the trade gap widened to EUR 6.9 billion in March from EUR 5.5 billion in February. The expected deficit was EUR 5.6 billion.

Eurozone retail sales fall slightly: Eurostat reported that retail sales dropped 0.1 percent on a monthly basis in March, marking the third consecutive fall. However, this was slower than the 0.3 percent decrease posted in February. 

Eurozone private sector shrinks for first time since 2024: The composite output index fell to 48.8 in April from 50.7 in the previous month. The reading was moderately above the flash estimate of 48.6.

Italy retail sales rebound 0.8% in March: The sales value rose 0.8 percent on a monthly basis in March, reversing a revised 0.1 percent drop in February. Moreover, the latest growth was the fastest since April 2025.

Eurozone investor confidence improves unexpectedly: A survey conducted by the behavioral research institute Sentix showed that the investor sentiment index rose to -16.4 in May from -19.2 in April. The score was forecast to fall to -20.9.

Asian Market

Asian markets traded in green during the passing week, even as renewed hostilities between the U.S. and Iran lifted crude oil prices and revived inflation worries.

Some of the major developments during the week are:

Japan Service Sector growth slows in April: Japan’s S&P Global Services PMI was revised slightly lower to 51.0 in April 2026 from 51.2 in the flash reading and down from March’s final 53.4, signalling a thirteenth successive month of expansion.

Japan monetary base shrinks in April: The monetary base in Japan was down 11.3 percent on year in April- coming in at 570.787 trillion yen.

Hong Kong retail sales growth eases in March: Hong Kong's retail sales grew 12.8 percent year-on-year in March, slower than the 19.3 percent surge in February, which was the strongest growth since June 2023.

China service sector expands at faster pace: The RatingDog China General Services PMI increased to 52.6 in April 2026 from March’s three-month low of 52.1, surpassing market forecasts of 52.

South Korea logs record current account surplus in March: South Korea’s current account surplus widened to $37.33 billion in March 2026, marking the largest monthly surplus ever and surpassing the previous peak set in February at $23.19 billion.
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