Dalal Street witnessed a tug-of-war on Thursday, May 7, 2026, as early gains evaporated and indices closed near the day’s lows. Optimism over a potential US-Iran peace deal kept sentiment supported, but late selling in heavyweights dragged benchmarks.
The BSE Sensex ended at 77,886.09, down 72.43 points or 0.09%, after swinging 671 points intraday. The index opened firm at 78,339.24, rallied to a day’s high of 78,384.70 by noon, then slid to 77,713.21 before a marginal recovery into the close. Previous close stood at 77,958.52.
The NSE Nifty 50 managed to stay afloat, finishing at 24,335.10, up 4.15 points or 0.02%. It opened at 24,398.50, hit an intraday high of 24,482.10, and tested 24,284.00 at the low. The index gave up most of its early gains, closing just above Wednesday’s 24,330.95 finish.
Both charts show a mid-session spike around 12:00 PM IST followed by steady profit booking into the 3:30 PM close.
Sector Shuffle: Banks Defend, Oil Majors Drag
Headline: PSU BANKS SHINE, RELIANCE & ONGC UNDER PRESSURE AS BRENT SLIDES
Market breadth was even. Banking and financials provided the cushion. HDFC Bank, ICICI Bank, and SBI saw buying interest after the government cleared a $1.9 billion MSME credit guarantee scheme to offset Iran-war disruptions.
Oil & gas stocks bore the brunt as Brent crude fell 1.5% to $99.82/bbl, extending Wednesday’s 8% crash on reports of a draft US-Iran peace framework. Reliance Industries and ONGC ended in the red, capping Sensex upside.
IT and pharma traded mixed ahead of Friday’s US non-farm payrolls data. Autos held firm on strong April sales numbers. Broader markets mirrored benchmarks: Midcap100 and Smallcap100 closed flat to marginally lower.
Geopolitical Check: Oil Cools, But Strait Of Hormuz Still In Focus
Headline: TRUMP EYES ‘SWIFT END’ TO IRAN WAR, MARKETS AWAIT HORMUZ CLARITY
The global mood improved as US President Donald Trump predicted a swift end to the war with Iran. Tehran is weighing a US peace proposal that would formally end hostilities but leaves Iran’s nuclear programme and the Strait of Hormuz status unresolved.
The truce buzz sent Brent tumbling nearly 8% Wednesday and another 1.5% Thursday. Even after the slide, Brent remains 40% above late-February levels when the conflict began.
For India, the world’s third-largest crude importer, cheaper oil is a relief. The rupee strengthened 0.7% to 94.61/$ on Thursday after hitting a record low of 95.43 Tuesday. Yet S&P Global cut India’s FY27 GDP forecast to 6.6% from 7.1%, citing energy and currency risks.
Business Headlines: Earnings Hold Up, EV Shift Accelerates
Headline: Q4 REPORT CARD BEATS FEARS; E-TRUCK SALES JUMP 45% ON DIESEL SPIKE
Corporate earnings continue to surprise positively. S&P 500 companies are on track for their strongest profit growth in over four years. Back home, Q4 has thrown “no major negative surprises” so far, with banks and autos leading.
The Iran conflict is reshaping India’s logistics. Diesel’s spike is accelerating electrification of heavy trucks. New-energy truck sales grew 45% YoY to 44,000 units in early 2026, now accounting for nearly a third of heavy truck purchases.
Globally, Tesla’s China-made EV sales jumped 36% in April to 79,478 units, supported by stronger battery-EV demand as oil prices spiked.
Global Cues: Asia At Records, Europe Pauses
Headline: NIKKEI CROSSES 62,000, MSCI ASIA EX-JAPAN HITS ALL-TIME HIGH
Risk assets rallied across Asia. Japan’s Nikkei crossed 62,000 for the first time after a long weekend. MSCI Asia ex-Japan rose 1.82% to a fresh record. Europe’s STOXX 600 was flat after Wednesday’s 2.2% surge.
US 10-year yields eased 2 bps to 4.334%, helping equity valuations. The dollar index slipped to 97.892 while the euro firmed to $1.1765.
Street View: 24,300 Holds, But Breakout Awaits Catalyst
Headline: NIFTY NEEDS 24,500 FOR UPSIDE; SENSEX STUCK BELOW 78,000
Technically, Nifty’s ability to hold 24,300 is a positive, but a close above 24,500 is needed to resume the uptrend. Support is seen at 24,200-24,000. For Sensex, 78,400 is immediate resistance, while 77,700 remains a crucial support.
Analysts say markets need confirmation of a durable US-Iran deal and stability in the Strait of Hormuz for the next leg up. Until then, expect choppy trade with sector rotation.
Bottomline: May 7 was a pause, not a panic. Cooling oil and peace hopes limited the downside, but lack of follow-up buying kept gains in check. Friday’s US jobs data and any Iran headlines will set the tone next.
