Sensex drops over 894 pts in early trade; breadth weak

The key equity benchmarks traded with major cuts in early trade. Nifty traded below the 23,950 mark. All sectoral indices on the NSE were traded in the red, with consumer durables, media and realty shares declining the most.

At 09:30 IST, the barometer index, the S&P BSE Sensex, tanked 893.99 points or 1.16% to 76,434.20. The Nifty 50 index fell 230.60 points or 0.98% to 23,940.45.

In the broader market, the BSE 150 MidCap Index slipped 0.99% and the BSE 250 SmallCap Index declined 0.73%.

The market breadth was weak. On the BSE, 1,124 shares rose and 2,218 shares fell. A total of 184 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,110.60 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,748.13 crore in the Indian equity market on 08 May 2026, provisional data showed.

Stocks in Spotlight:

Shipping Corporation of India jumped 7.73% after the company reported a 118.5% YoY rise in consolidated net profit to Rs 404.60 crore in Q4 FY26, compared with Rs 185.14 crore in Q4 FY25. Revenue from operations increased 14.2% year-on-year to Rs 1,513.21 crore for the quarter ended 31 March 2026.

Multi Commodity Exchange of India (MCX) rose 0.12%. The company reported a 291% year-on-year (YoY) surge in consolidated net profit to Rs 530 crore in Q4 FY26, compared with Rs 135 crore in Q4 FY25. Revenue from operations jumped 205% YoY to Rs 889 crore for the quarter ended 31 March 2026.

Kalyani Steels declined 2.72% after the company reported a 10.51% year-on-year fall in consolidated net profit to Rs 71.77 crore on a 11% decline in revenue from operations to Rs 484.39 crore in Q4 FY26 over Q4 FY25.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.70% to 7.033 compared with the previous session close of 6.984.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 94.9150 compared with its close of 93.5100 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement shed 0.31% to Rs 152,050.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.20% to 98.10.

The United States 10-year bond yield rose 0.66% to 4.393.

In the commodities market, Brent crude for July 2026 settlement fell $4.18 or 4.13% to $105.47 a barrel.

Global Markets:

Asian markets traded mixed on Monday as rising oil prices and escalating tensions between the U.S. and Iran weighed on investor sentiment.

China?s annual inflation rose to 1.2% in April 2026 from 1% in March, surpassing market estimates of 0.8%, driven by higher transport, healthcare and education costs amid elevated energy prices and Middle East-led supply chain disruptions. Food prices declined 1.6%, weighed by weak pork, vegetable and fruit prices. On a monthly basis, CPI rose 0.3% in April, reversing a 0.7% decline in March.

President Donald Trump?s rejection of Tehran?s latest proposal to end the war, however, stoked worries over an elongated Middle East conflict.

Iran submitted a new proposal to U.S. negotiators focused on ending the Middle East conflict. Iran?s semi-official media agency said that the counteroffer called for an end to the war on all fronts and the lifting of sanctions on Tehran, citing an informed source.

However, Trump said he did not like Iran?s response and called it ?TOTALLY UNACCEPTABLE!? in a social media post.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu reportedly said on Sunday that the war with Iran was ?not over,? as the U.S. and Israel still aim to curb Tehran?s nuclear ambitions.

Netanyahu?s comments come ahead of Trump?s trip to China later this week, where he?s expected to meet with Chinese President Xi Jinping. The war and the subsequent closure of the Strait of Hormuz by Iran have spiked global energy costs and sharply raised gas prices in the U.S.

Last week, U.S. equities rose on Friday following a better-than-expected April?s jobs report and as traders eyed developments between the U.S. and Iran.

The S&P 500 advanced 0.84% to end at 7,398.93, while the Nasdaq Composite climbed 1.71% to 26,247.08. Both indexes hit new all-time intraday highs in the session and closed at records. The Dow Jones Industrial Average inched up 12.19 points, or 0.02%, to settle at 49,609.16.

Sentiment was bolstered by the Bureau of Labor Statistics reporting that nonfarm payrolls rose by 115,000 last month, more than the 55,000 that media reports had suggested. The U.S. jobless rate also held steady at 4.3%, in line with widely reported numbers.

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