Sensex, Nifty drop as US‑Iran tensions and tech selloff hit risk assets

Benchmark indices Sensex and Nifty 50 fell in early trade on Wednesday, July 8, declining 538 points and 164 points respectively, as renewed U.S.-Iran tensions pushed Brent crude higher and a global selloff in technology stocks weighed on risk sentiment.

Market Overview

Index	8 Jul 2026 Early Trade Close	Move & % Change	Comments
Sensex (BSE)	77,642.89	-537.83 pts (-0.7% approx.)	Opened lower, pressured by energy and consumer names.
Nifty 50 (NSE)	24,235.15	-163.55 pts (-0.7% approx.)	Followed global risk-off, slipped from prior record zone.
Nikkei 225	67,763.91	-0.72%	Choppy trade, tech tracked Nasdaq losses.
Topix	4,037.16	-0.62%	Broad Japan decline led by chip-related stocks.
Kospi	Intraday down as much as 6.1%	Drop from peak near -20%	Entered technical bear territory after AI-led rally.
Hang Seng China Enterprises	Intraday up as much as 3.8%	+3.8% (intraday)	Biggest gain since April 2025, tech names rebounded.
Kosdaq	Early trade down 1.94%	-1.94%	Small caps underperform in Korea.

Note: figures are approximate; final exchange data not available at time of publication.

• Sensex decline followed a 104-point fall on Tuesday from record levels.
• Nifty 50 had slipped 32 points in the previous session after fag-end selling.
• Foreign Institutional Investors bought equities worth ₹393.19 crore on July 7, per exchange data.
• U.S. indices, including the Nasdaq, closed lower on July 7 as chip stocks fell.

Key Movers

Top Gainers	Sector	Notable Factor
Sun Pharma	Pharmaceuticals	Among few Sensex gainers despite global risk-off.
HCL Tech	IT Services	Resilient within tech, bucked broader chip weakness.
Tech Mahindra	IT Services	Benefited from rotation within Indian IT.
Power Grid	Utilities	Defensive buying supported stock.
ICICI Bank	Banking	Continued to attract flows despite index decline.

Top Losers	Sector	Notable Factor
Asian Paints	Consumer	Fell amid risk-off and crude-related input cost concerns.
InterGlobe Aviation	Aviation	Declined as higher oil prices raised fuel cost worries.
Reliance Industries	Energy & Telecom	Tracked crude volatility and broader index weakness.
ITC	FMCG	Dropped with consumer basket in early trade.
Bajaj Finance	NBFC	Corrected after recent strength, risk sentiment softer.
Mahindra & Mahindra	Auto	Auto stocks weakened on macro and cost concerns.

• Tech weakness in Asia focused on chipmakers and equipment suppliers.
• Tokyo Electron fell 2.4%, Advantest edged 0.38% lower.
• Taiyo Yuden dropped 6%, while Kioxia turned 2% higher after early losses.

Sectoral Action

Sector/Index	Direction (approx.)	Key Drivers
Indian financials	mixed	ICICI Bank gained, Bajaj Finance declined on risk-off mood.
Indian IT	mixed	HCL Tech, Tech Mahindra rose despite global chip weakness.
Indian energy	down	Reliance fell as crude spiked and geopolitical risk rose.
Indian consumer	down	Asian Paints, ITC declined on input and demand concerns.
Asian semiconductors	down	Samsung, SK Hynix slid after AI rally sustainability worries.
Hong Kong tech	up	Alibaba, Tencent rallied as investors rotated into China tech.

• Samsung Electronics dropped over 6% despite a 19-fold jump in quarterly profit.
• SK Hynix slipped 4.2%, coinciding with its planned U.S. listing marketing.
• Alibaba gained more than 10%, Tencent rose over 4% in Hong Kong.

Technical Outlook

• Kospi decline from last month’s peak extended to about 20%, meeting bear market definition.
• Kospi’s year-to-date gain reduced from 116% at peak to about 72%.
• Leveraged ETFs magnified Kospi volatility on both upside and downside.
• Nikkei traded between a 1.66% drop and 0.25% gain intraday, indicating choppiness.

• “A lot of this increase in volatility is driven by fundamental uncertainty.”

– Ian Samson, Portfolio Manager, Fidelity International.

• “Investors can not fully regain their confidence in AI shares.”

– Daisuke Hashizume, Senior Strategist, Daiwa Securities.

Global Cues

Market/Asset	Movement	Notes
S&P 500	-0.45%	Closed lower as chip stocks weighed on sentiment.
Nasdaq	-1.16%	Fell on semiconductor declines, Intel dropped 8.2%.
Dow Jones	-0.25%	Reversed intraday record to close in the red.
Brent crude	+2.55% to $76.05	Spiked on renewed U.S.-Iran tensions and tanker incident risk.
Brent crude (Asia hours)	+0.4% to $72.25	Traded higher after report of tanker hit in Strait of Hormuz.
USD/JPY	Around 162.15	Yen weakened, hedge funds most bearish since 2007.

Note: figures are approximate; final exchange data not available at time of publication.

• U.S. equity futures, including Nasdaq 100 futures, traded lower in early Asian hours.
• U.S. Treasuries were steady after gains on reduced expectations of a more hawkish Fed.
• Japanese government bond futures edged higher ahead of a 30-year auction.

Macro and Flows

Statistic	Value/Change	Context
FII cash equities (7 Jul)	₹393.19 crore net buying	Supported prior Indian market strength before latest risk-off.
Brent crude	$76.05 per barrel	Higher crude poses risk to India’s inflation and current account.

• Market participants reassessed AI-driven capex, estimated around $1 trillion, concentrated in large tech firms.
• Elevated semiconductor earnings are being weighed against sustainability of AI-related spending.

• “With the renewed U.S.-Iran tensions and the consequent spike in Brent crude to $76, the market is again back in uncertain territory.”

– V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments.

• “The renewed U.S.-Iran tensions have put a temporary question mark on this positive development.”

– V.K. Vijayakumar, on improving FII activity and macro fundamentals.

Frequently Asked Questions

Why did Sensex and Nifty fall in early trade on 8 July 2026?

Sensex and Nifty declined mainly due to renewed U.S.-Iran tensions that pushed Brent crude higher, combined with a global selloff in technology and semiconductor stocks that weakened risk sentiment across Asian and U.S. markets.

How are higher Brent crude prices affecting Indian equities?

Brent crude rising to around $76 per barrel raises concerns about imported inflation and higher input and fuel costs, pressuring sectors such as aviation, energy, and consumer stocks, and adding macro uncertainty for Indian markets.

What is driving volatility in Asian technology and chip stocks?

Volatility is being driven by doubts over the sustainability of the AI-led capex boom, profit-taking after strong semiconductor earnings, and leveraged products amplifying moves, which together have pushed indices like Korea’s Kospi into a technical bear market.