Benchmark indices BSE Sensex and NSE Nifty 50 ended in the red on May 5, 2026, as escalating tensions in the Strait of Hormuz and renewed strain in the US-Iran conflict weighed on investor sentiment.

Adding to concerns, the Indian rupee plunged to a record low against the US dollar amid rising crude oil prices, prompting caution among market participants.

Key Highlights

• Sensex, Nifty fall amid Middle East tensions, rupee hits record low and oil prices surge.
• Banking stocks drag markets while midcaps outperform, supported by strong earnings and selective buying.

In a volatile trading session, the 30-share Sensex declined 251.61 points, or 0.33%, to settle at 77,017.79 after falling as much as 754 points intraday. Meanwhile, the Nifty 50 slipped 86.50 points, or 0.36%, to close at 24,032.80.

Banking and IT stocks were among the key drags, with major laggards including ICICI Bank, Axis Bank, Tech Mahindra, Bharti Airtel, and Larsen & Toubro. On the other hand, gains in Mahindra & Mahindra, UltraTech Cement, Bajaj Finance, and Bajaj Finserv helped limit losses.

The Indian currency weakened sharply to touch a record low of 95.43 against the US dollar, driven by elevated crude oil prices and geopolitical uncertainty. Rising energy costs and concerns over global trade routes further dampened investor confidence.

Also Read: NSE Launches Electronic Gold Receipts to Boost Gold Trading in India

Despite broader market weakness, midcap stocks outperformed, supported by strong quarterly earnings from companies such as Tata Technologies and Aurobindo Pharma. Select stocks also saw sharp movements on the back of Q4 results, reflecting stock-specific momentum.

Market experts indicate that near-term volatility is likely to persist, with global geopolitical developments, crude oil price trends, and currency movements remaining key triggers.