Indian equity markets dropped sharply in early trade on Friday, May 8, 2026, with the BSE Sensex (India's primary 30-stock benchmark index) falling over 530 points to 77,331.75 and the NSE Nifty shedding nearly 167 points to 24,170.80, as escalating geopolitical tensions in West Asia and climbing oil prices dampened investor confidence. A recent exchange of fire between the United States and Iran near the Strait of Hormuz — a critical global oil chokepoint — pushed Brent crude above $101 per barrel, while foreign institutional investors pulled out roughly ₹340 crore from Indian equities the previous session. The sell-off mirrored broader weakness across Asian and U.S. markets, with analysts warning that Indian markets will remain highly sensitive to developments in the region until there are clearer signs of de-escalation.