Although the benchmark indices opened lower, they traded negatively throughout the session and ultimately closed red.
Indian equity benchmarks, Sensex and Nifty50, snapped a two-day gaining streak and ended sharply down as mixed signals from the US and Iran about the ongoing talks unnerved investors.
At the closing bell, the BSE Sensex closed lower by 1,690 points (down 2.2.%)
Meanwhile, the NSE Nifty closed 486 points lower (down 2.1%)
Bharti Airtel, TCS, and Sun Pharma are among the top gainers today.
SBI, Bajaj Finance, and HDFC Bank, on the other hand, were among the top losers today.
The GIFT Nifty was trading at 22,81, higher by 459 points at the time of writing.
The BSE 150 Midcap index is trading 2.1% lower, and the SE 250 SmallCap index is trading 1.7% lower.
Sectoral indices are trading negatively today, with stocks in the auto sector and realty sector witnessing selling pressure.
The rupee is trading at Rs 94.7 against the US$.
Gold prices for the latest contract on MCX are trading 1.5% higher at Rs 144,660 per gram.
Meanwhile, silver prices were trading 1.8 % higher at 2,24,003 per 1 kg.
Four reasons why Indian share markets are falling:
#1 Profit Booking
After a strong 3.5% rally in the last two sessions, investors began selling stocks to secure profits. This led to a broad market decline, with most sectors ending in losses. Small-cap and mid-cap stocks also dropped by around 1.7%.
#2 Geopolitical Concerns
Global markets are under pressure due to uncertainty surrounding the US-Iran conflict. While talks are ongoing, there is still no clear resolution in sight. This uncertainty has made investors cautious and triggered selling worldwide.
#3 Crude Oil Prices Above $100
Oil prices remain high, staying above $100 per barrel despite some minor dips. The ongoing conflict has raised fears of supply disruptions, keeping prices volatile. Prices may ease only if the geopolitical situation improves.
#4 Weak Rupee
The Indian rupee has fallen to a record low near 94.7 against the US dollar. Rising crude oil prices are increasing India's import costs and putting pressure on the currency. Continued selling by foreign investors is further weakening the rupee.
OFSS Spikes After Signing Key Agreement
Shares of Oracle Financial Services Software (OFSS) came into focus on Friday after the company entered into a definitive agreement with an existing customer.
Oracle Financial Services Software Ltd has entered into an agreement with a global bank based in the United States. Under this deal, the company will provide certain software products on a permanent basis along with related transition services and support.
The agreement is international in nature and involves commercial terms. The completion of the transaction depends on meeting certain conditions by 29 May 2026, some of which may be outside the company's control.
The total value of the deal is estimated at around USD 100 million (approximately Rs 9.4 billion depending on exchange rates). After completion, the company is expected to provide transition services to the customer for about 6 to 9 months on mutually agreed terms.
HFCL Gains After Defence Expansion Announcement
Shares of HFCL came into focus after the announcement of board approval for a significant expansion in its defence operations via its subsidiary, HFCL Advance Systems Private Ltd (HASPL).
The expansion includes an investment of Rs 1.75 bn across multiple acquisitions, such as Spiral EHL Engineering, a stake in Raddef, and a thermal weapon sight business.
Following this consolidation, the company now has a confirmed order book of Rs 16.8 bn, including Rs 15.7 bn from exports and Rs 1.1 bn from domestic contracts in aeronautics, aerostructures, and defence manufacturing. The transactions are expected to be completed within the current calendar year.
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