Indian Stock Market Opens Lower Amid Currency Decline
Market Overview
Following a day of gains, the Indian Stock Market experienced a downturn on Tuesday, coinciding with the Indian Rupee hitting a record low. At the market's opening, the Sensex dropped by 320.20 points, or 0.41%, settling at 76,949.20. Similarly, the Nifty index fell by 98.30 points, also a 0.41% decrease, to reach 24,021.00. Among the stocks that gained were Shriram Finance, Bajaj Finance, HDFC Bank, Maruti Suzuki, and Asian Paints, while ONGC, Adani Ports, Max Healthcare, ITC, and Hindalco faced losses. The rupee ended the day at a historic low of 95.09 against the US dollar, down 18 paise from the previous close. The GIFT Nifty showed a slight increase of 37 points, or 0.15%, at 24,082 in early trading, reflecting mixed global cues. Brent crude oil prices were recorded at $113.85 per barrel, down approximately 0.5%, following a significant rise in the previous session due to renewed tensions in the Strait of Hormuz. Meanwhile, US WTI crude saw a decline of 1.3%, priced at $105.03.
Expert Insights
What Experts Say?
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented, "The positive sentiment from the BJP’s electoral win in West Bengal is unlikely to sustain. Market trends will largely depend on developments in West Asia, especially in the Strait of Hormuz. The resurgence of conflicts in this region and the spike in Brent crude prices to around $113 pose challenges for the market. Additionally, the US 10-year bond yield rising to 4.44% and the rupee's decline to 95.23 are unfavorable for foreign portfolio investment flows. The recent cash market purchases by foreign institutional investors (FIIs) may not indicate a lasting trend. In the short term, market reactions will be influenced by Q4 earnings reports and management insights."
Aakash Shah, a Technical Research Analyst at Choice Equity Broking Private Limited, noted, "Indian equity markets are anticipated to open flat to slightly positive, following the GIFT Nifty at 24,082, which is up by 37 points. Market sentiment remains cautious due to ongoing developments in the Middle East and fluctuations in crude oil prices." He added, "FIIs were net buyers of approximately ₹2,835 crore, while domestic institutional investors (DIIs) showed strong buying interest with inflows of around ₹4,764 crore on May 4, 2026, indicating robust support from domestic institutions alongside selective foreign participation. The India VIX remains elevated yet stable at around 18.3, suggesting a cautious market atmosphere with potential for intraday volatility."