11 May,2026 11:05 AM IST | Mumbai | mid-day online correspondent
Sensex, Nifty slip in early trade. Representational Image
Indian equity markets started the week on a negative note, with both major benchmarks falling sharply. The decline came as investors reacted to rising geopolitical tensions, increasing crude oil prices and concerns over foreign exchange outflows.
At the opening bell, the BSE Sensex stood at 76,378.03, down by 950.16 points (1.23 per cent). The NIFTY 50 also slipped to 23,900.25, falling 275.90 points (1.14 per cent), reported ANI.
Sectorally, all indices traded in the red, with Nifty Consumer Durables, Nifty Auto, Nifty PSU Bank, Nifty Private Bank, Nifty Oil and Gas and Nifty Chemicals falling up to nearly 3 per cent, as per IANS.
Among Nifty stocks, Titan, IndiGo, MandM, Shriram Finance, Eternal, Maruti Suzuki, Bajaj Auto, Bajaj Finserv, Bharti Airtel, HDFC Life, Eicher Motors and Dr Reddy's Laboratories were among the top laggards.
Investor sentiment was also affected after Prime Minister Narendra Modi urged citizens to reduce unnecessary foreign spending.
He asked people to avoid foreign travel, overseas weddings and non-essential gold purchases for one year to help conserve foreign exchange reserves. This appeal reflects a crisis-management response to rising pressure on the current account deficit due to elevated crude prices, said an expert as per IANS reports.
This also led to a sharp reaction in the jewellery sector.
The jewellery industry saw heavy selling pressure following the remarks:
-Senco Gold fell 8.98 per cent to Rs 332.60
-Titan Company dropped 5.34 per cent to Rs 4,268.10
-Kalyan Jewellers India declined 7.43 per cent to Rs 393.00
-PC Jeweller slipped 3.89 per cent to Rs 9.13
The sharp fall reflected concerns over reduced consumer demand in the near term, as per ANI reports.
Banking and market expert Ajay Bagga said geopolitical tensions and energy concerns are weighing heavily on markets.
He noted that energy and forex challenges are becoming increasingly important for India's economy. "India is a different story and the PM in a public gathering spoke of the energy supply and price challenges for the Indian economy and the need to take measures to reduce energy dependence and imports while conserving foreign exchange. Indian markets are pointing to a weak open.
Bagga also spoke about the cost of insulating oil prices in India."Expectations of petrol and diesel price hikes this week are high as OMC losses are running at Rs 30,000 crores per month," reported ANI.
Furthermore, US President Donald Trump's strong remarks calling Iran's response "totally unacceptable" have reduced hopes of easing the US-Iran conflict. This has also dimmed expectations of smoother oil flows through the Strait of Hormuz.
Sujan Hajra, Chief Economist at Anand Rathi, said the economy remains resilient but external pressures are building..
He said, "Growth is holding up, but global risks are beginning to make resilience more expensive." Higher crude prices and trade route disruptions are keeping inflation concerns alive, as per ANI.
While Indian markets have shown strength in recent months, analysts expect volatility to continue due to global uncertainty, oil price movements and geopolitical developments.
Asian markets were mixed, with Japan and Hong Kong lower while South Korea's KOSPI rose over 4 pc. Meanwhile, the India VIX rose nearly 2 pc, signalling increased market uncertainty.
(With ANI and IANS Inputs)
