Market drops in early trade; breadth positive

The key domestic indices traded with significant losses in early trade as investor sentiment remained cautious amid uncertainty over the reopening of the Strait of Hormuz and a sharp surge in crude oil prices above the $100-per-barrel mark. Investors are also closely monitoring Q4 earnings for further cues. Market can be volatile amid NSE's weekly derivatives contract expiry. The Nifty traded near the 24,200 level.

Barring Pharma all the sectoral indices on the NSE were traded in red with consumer durables, auto and private bank shares declining the most.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 601.78 points or 0.76% to 77,912.47. The Nifty 50 index fell 177.25 points or 0.72% to 24,202.90.

In the broader market, the BSE 150 MidCap Index dropped 0.15% and the BSE 250 SmallCap Index rose 0.09%.

The market breadth was positive. On the BSE, 1,542 shares rose and 1,434 shares fell. A total of 166 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.14% to 18.88.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,078.36 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,048.17 crore in the Indian equity market on 22 April 2026, provisional data showed.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.39% to 6.950 compared with previous session close of 6.923.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 94.1450 compared with its close of 93.7850 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement declined 0.31% to Rs 152,182.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.10% to 98.68.

The United States 10-year bond yield advanced 0.58% to 4.319.

In the commodities market, Brent crude for June 2026 settlement jumped $1.58 or 1.55% to $103.49 a barrel.

Stocks in Spotlight:

Havells India declined 4.58%. The company reported standalone net profit jumped 40.58% to Rs 734.24 crore on a 2.38% rise in revenue to Rs 6,687.68 crore in Q4 FY26 compared with Q4 FY25.

SBI Life Insurance Company fell 2.74%. The company standalone net profit for Q4 stood at Rs 804.6 crore, down 1.1% year-on-year from Rs 813.5 crore. Net premium income rose 16% on-year to Rs 27,683.8 crore, compared with Rs 23,860.7 crore in the same period last year, indicating healthy traction in business volumes.

L&T Technology Services (LTTS) dropped 1.93%. The company reported a 6.8% jump in consolidated net profit to Rs 332.1 crore on an 8.3% increase in revenue from operations to Rs 2,857.9 crore in Q4 FY26 over Q4 FY25.

Global Market:

Asian market traded with some losses on Thursday, even after President Donald Trump extended the ceasefire with Iran.

Trump extended a two-week U.S. ceasefire on Tuesday, saying it was warranted due to Tehran?s ?seriously fractured? government.

The ceasefire will remain in place until Iran submits a proposal or talks conclude, while the U.S. military continues its blockade of Iranian ports, Trump said.

However, the timeline remains uncertain. Iranian state media reported Wednesday that Tehran?s negotiators would not attend talks with the U.S., calling them a waste of time.?

A lack of commitment from Iran reportedly prompted Vice President JD Vance to pause his trip to join peace talks.

Meanwhile, Iran?s navy also said that it had seized two container ships in the Strait of Hormuz.

On the data front, Japan?s manufacturing activity expanded at its fastest pace in four years in April, according to the S&P Global flash Purchasing Managers? Index, as firms boosted output amid supply concerns linked to Middle East tensions.

The S&P Global flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to 54.9 in April, the highest since January 2022, from 51.6 in March. The 50-mark separates growth from contraction.

South Korea?s economy grew more than expected in the first three months of the year, recording the fastest growth since the third quarter of 2020. The 1.7% growth in January to March from the previous quarter exceeded the widely reported estimate of 1.0% and reflects a rebound from the 0.2% contraction in the prior quarter.

Overnight on Wall Street, the S&P 500 and Nasdaq Composite finished at record levels on Wednesday after President Donald Trump extended the U.S. ceasefire with Iran, while upbeat earnings reports also lifted sentiment.

The broad market index added 1.05% to finish at 7,137.90, while the tech-heavy Nasdaq added 1.64% to settle at 24,657.57. Meanwhile, the Dow Jones Industrial Average advanced 340.65 points, or 0.69%, to end the day at 49,490.03.