Iran-Israel Tensions Weigh on Sentiment, Nifty Ends Deep in the Red - Paper by Pocketful

Jun 08, 2026

HG Infra Engineering (+2.84%): Stock gained after the company received the provisional completion certificate for its ₹4,970.99 crore Ganga Expressway project in Uttar Pradesh. The EPC-based infrastructure project marks a key milestone and is expected to strengthen the company’s execution track record in large-scale road construction projects.
Creative Newtech (+14.04%): Stock hit the upper circuit at opening and remained in the green throughout the session after securing a ₹3,194.83 crore BSNL BharatNet project order, boosting investor confidence and growth expectations.
EMS (+10.35%): Stock advanced after the company emerged as the lowest bidder (L-1) for a ₹102.8 crore project awarded by UP Jal Nigam (Urban), Varanasi. The order is expected to strengthen its municipal infrastructure project portfolio and support future revenue growth.
Hindustan Zinc (-1.91%): Stock declined despite signing an MoU with TERI for a 250-hectare ecological restoration project in Rajasthan, as investor sentiment remained muted.

Healthcare | Nifty Healthcare (+0.09%): The index remained in positive territory for the fifth consecutive session, emerging as the only sectoral gainer. Despite 11 stocks declining and 9 advancing, strength in select heavyweight pharma counters and defensive buying supported the index.
Realty | Nifty Realty (-2.56%): The Nifty Realty Index was among the Worst -performing sectoral indices, with all Stocks traded in red, Profit booking and cautious investor sentiment weighed on the sector, despite continued optimism around long-term housing demand and stable interest rates.
Metal | Nifty Metal (-2.33%): The Nifty Metal Index emerged as the worst-performing sectoral index, dragged down by sharp declines in Hindalco Industries, Tata Steel, and Adani Enterprises. The weakness was driven by broad-based selling across metal stocks amid concerns over softer commodity prices, demand uncertainty, and profit-booking following recent gains.
Auto | Nifty Auto (-1.91%): The Nifty Auto Index emerged among the weakest sectoral performers, with all constituents trading in the red. The decline followed FADA’s report of a month-on-month drop in May vehicle retail sales, raising concerns over near-term demand and sector growth momentum.

Technical Level: Nifty opened with a sharp gap-down, reflecting negative sentiment at the start of the session. The index found initial support near 23,070 and recovered steadily through the first half. However, it faced resistance near 23,270 and witnessed selling pressure in the second half, gradually slipping lower to end the session near its opening levels.
Advance-Decline Ratio: Market breadth remained sharply negative, with 757 advances against 2,541 declines, indicating broad-based selling pressure and weakness across the broader market.
The Big Picture: Investor sentiment remained cautious after fresh military exchanges between Iran and Israel raised concerns over the stability of the fragile ceasefire. Iran launched missile strikes in response to Israeli operations in Lebanon, while Israel retaliated with attacks on Iranian military and strategic infrastructure. The renewed tensions heightened fears of broader regional instability, potential disruptions to energy supplies, and increased volatility in global markets.
FII/DII Activity (June 08, 2026): DII bought ₹5,165 crore, while FII sold ₹5,555.67 crore, reflecting continued foreign outflows despite strong domestic support.

IPO Corner: Hexagon Nutrition IPO will close for subscription tomorrow and continues to attract investor attention amid sustained activity in the primary market segment.
Macro: China Balance of Trade (May) & USA Existing Home Sales (May) Investors will track the data for signals on global demand, economic momentum, and potential market direction next week.
Index Watch: Nifty opened on a negative note and witnessed heavy selling pressure throughout the session amid weak market sentiment following renewed concerns over the Iran-Israel ceasefire situation. Persistent selling in metal stocks further weighed on the index. Nifty breached the crucial 23,270 support level during the day, indicating weakness in the near term. Immediate support is now seen around 22,950, while resistance is placed near 23,270. A sustained move above resistance could help improve market sentiment.

Dead Cat Bounce - A temporary recovery in stock prices after a significant decline, often followed by a continuation of the downtrend. Investors should be cautious not to mistake it for a sustained market reversal.

👀 Stay tuned. Stay diversified.
Until next time,
Team Pocketful.

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