Market Today: Sensex Plummets 1,000 Points, Nifty Slips Below 23,900 As Trump Rejects Iran Offer

Market Updates Today, May 11: Indian equity benchmarks extended losses in early trade on Monday, with the Sensex tumbling more than 1,000 points and the Nifty slipping below the 23,900 mark due to rising concerns over crude oil prices amid escalating Iran-US tensions.

At around 9:50 am, the BSE Sensex was down 1,047 points at 76,280, while the Nifty 50 declined 293 points to 23,882. Volatility surged sharply, with India VIX jumping nearly 12 per cent to 18.81, indicating heightened nervousness among traders.

The selloff remained broad-based with all key market segments trading in the red. Broader markets also witnessed sharp cuts as the Nifty Midcap 100, Smallcap 100 and Microcap 250 indices fell between 1.2 per cent and 1.8 per cent.

Financial

stocks emerged as one of the biggest drags on the market. Nifty Bank dropped over 1.5 per cent, while PSU Bank and Financial Services indices declined as much as 2.1 per cent and 1.5 per cent, respectively. Heavyweights such as SBI, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Bajaj Finance saw sustained selling pressure.

Consumer-facing sectors were among the worst hit after Prime Minister Narendra Modi’s appeal to curb consumption of fuel, gold, edible oils and avoid unnecessary foreign travel sparked concerns over FY27 demand growth. The Nifty Consumer Durables index plunged nearly 4 per cent, led by a sharp 7.7 per cent fall in Titan. Trent, Asian Paints and Bharti Airtel also traded sharply lower.

Auto stocks remained under pressure, with the Nifty Auto index falling over 1.5 per cent. Maruti Suzuki, M&M and Bajaj Auto witnessed notable losses amid fears that higher crude prices and austerity measures could weigh on consumption sentiment.

Oil-linked concerns also kept pressure on the market after Brent crude surged back near the $105-per-barrel mark following renewed geopolitical tensions in West Asia. Higher crude prices are seen worsening India’s current account deficit and inflation outlook.

V K Vijayakumar, chief investment strategist at Geojit Investments Ltd, said the market is facing twin headwinds — fading hopes of a resolution in the West Asia conflict after US President Donald Trump rejected Iran’s proposal, and concerns arising from the government’s austerity-like measures to manage the current account deficit.

He said sectors linked to fuel, fertilisers, gold consumption, aviation and hotels could remain under sentimental pressure, while defensive sectors like pharmaceuticals may show resilience.

Defensive buying was visible in a few pharma and IT names. HCLTech and NTPC were among the limited gainers on the Sensex, while Sun Pharma remained relatively stable. The Nifty IT index traded nearly flat, outperforming the broader market.

Asian cues, however, remained mixed. South Korea’s Kospi surged nearly 4 per cent led by gains in SK Hynix, while Japan’s Nikkei traded firm. In contrast, Hang Seng futures and US index futures indicated weakness, limiting risk appetite across emerging markets.

Nifty Technical View

Anand James, chief market strategist at Geojit Investments Ltd, said, “VIX not being far from 17 is suggestive that traders continue to harbour volatility expectations. This prompts us to look at 24120 region with caution, even though it allowed a regrouping of bulls on Friday on anticipated lines. Inability to float above the same could expose 23750-23540-23400, but a vertical fall is less expected today.”