11 May,2026 05:30 PM IST | Mumbai | Tarun Verma
Representational image. File pic
Amid the tensions in the Gulf, Indian equity markets witnessed sharp selling pressure on Monday. The sudden dip in the market indices was also because of the growing concerns of rising crude oil prices.
Indian benchmark indices ended on a sharply negative note on Monday, May 11, amid rising crude oil prices following the lack of any breakthrough in the US-Iran peace talks.
Weakness in the Indian rupee, along with continued selling pressure from the FII desk, further weighed on overall market sentiment. At close, the Sensex declined 1,312.91 points, or 1.70 per cent, to settle at 76,015.28, while the Nifty fell 360.30 points, or 1.49 per cent, to close at 23,815.85.
While the index formed a sizeable bearish candlestick pattern with a lower high and a lower low and a bearish gap above its head (24,127-23,997), it signalled an extension of the corrective decline for the third session in a row.
Nifty on Monday during the closing hours was placed around the lower band of the last 3 weeks' consolidation range, 23,800-24,400. A breakdown below 23,800 will open further downside towards 23,550 levels in the coming sessions, being the previous major low of April 13, 2026, and the 38.2 per cent retracement of the previous pullback (22183-24601).
Holding above 23,800 on a closing basis will signal an extension of the recent consolidation. The higher immediate resistance is placed at Monday's gap-down area of 24,127-23,997. An index sustaining below the same level will keep the bias down.
Crude oil prices remained elevated amid the ongoing geopolitical tensions in West Asia. Brent crude prices were trading around USD 103 per barrel on Monday.
In Asian markets, most major indices also closed in positive territory except Japan. Japan's Nikkei 225 index ended lower by 0.38 per cent at 62,479. Singapore's Straits Times index gained 0.42 per cent to close at 4,942, while Hong Kong's Hang Seng index edged up 0.06 per cent to settle at 26,410. Taiwan's weighted index also rose 0.45 per cent to close at 41,790.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial, said, "Indian equities are expected to remain cautious in the near term amid escalating geopolitical tensions, with stock- and sector-specific action likely to continue alongside the final leg of the Q4FY26 earnings season. Elevated crude oil prices, rupee weakness, and sustained Foreign Institutional Investor (FII) selling are expected to keep overall market sentiment subdued."
Khemka, while stressing about escalating geopolitical tensions, said, "Indian equities are expected to remain cautious in the near term amid escalating geopolitical tensions, with stock- and sector-specific action likely to continue alongside the final leg of the Q4 FY26 earnings season. Elevated crude oil prices, rupee weakness, and sustained FIIs selling are expected to keep overall market sentiment subdued."
