MUMBAI, May 11, 2026, 13:45 IST
Indian shares fell sharply on Monday, with the Sensex down more than 900 points in afternoon trade and the Nifty 50 slipping below 23,950, as a surge in crude oil and Prime Minister Narendra Modi’s call to conserve fuel and foreign exchange hit risk appetite. Earlier in the session, the Sensex had dropped more than 1,100 points.
The selloff matters now because India is heavily exposed to oil imports, and Brent crude’s move back above $105 a barrel has revived worries over inflation, the rupee and the trade bill. A current account deficit means a country spends more foreign currency than it earns; higher oil and gold imports can widen that gap fast.
Modi on Sunday urged Indians to cut fuel use, revive work-from-home practices where possible, use public transport and avoid non-essential gold purchases and overseas travel for at least a year, saying foreign exchange must be saved. Reuters reported that India, the world’s third-biggest oil importer and consumer, has not raised diesel and gasoline pump prices despite the global energy surge.
The rupee also weakened past 95 to the dollar, and traders pointed to dollar sales by state-run banks, likely on behalf of the Reserve Bank of India, to slow the fall. Reuters reported the rupee was down 0.75% at 95.1850 per dollar, while the Nifty 50 was off more than 1% and India’s 10-year benchmark bond yield rose 5 basis points to 7.03%.
“The market will face pressure from two headwinds today,” VK Vijayakumar, chief investment strategist at Geojit Investments, told The Economic Times, pointing to faded hopes for a West Asia settlement and Modi’s conservation appeal. He said the appeal had “slightly negative implications” for growth in fiscal 2027. The Economic Times
Selling was broad. The Economic Times said all sectoral indices were in the red, led by consumer durables, realty, media, PSU banks and autos, while IT, healthcare and FMCG showed some relative resilience. India VIX, the market’s volatility gauge, rose 10% to 18.50 in early trade.
The hit was sharp in stocks tied to discretionary spending and imports. Titan, IndiGo, SBI, Bharti Airtel and Eternal were among the major Sensex losers, while Sun Pharma, TCS, Infosys and ICICI Bank were among the few gainers in late morning trade, according to Times of India market updates.
Jewellery shares took a direct blow from Modi’s gold appeal. Times of India reported Senco Gold fell 8.98%, Titan dropped 5.34%, Kalyan Jewellers lost 7.43% and PC Jeweller slipped 3.89% after the prime minister urged citizens to avoid non-essential gold buying for a year.
Travel and oil-linked stocks were also hit. Reuters said oil marketing companies Indian Oil, BPCL and HPCL fell about 2.6%, while Indian Hotels, Lemon Tree, Chalet Hotels, Thomas Cook and Yatra Online dropped between 1.2% and 5.3%; IndiGo lost 4%.
There were pockets of resistance. Hyundai Motor India rose nearly 5% after brokerages kept “buy” calls on the stock even as the company reported a 22% drop in quarterly net profit, The Economic Times reported. Tata Consumer and MCX also gained despite the broader market weakness. The Economic Times
Foreign investor flows remain another drag. Times of India reported foreign investors had pulled out Rs 14,231 crore from Indian equities so far this month, with Santosh Meena, head of research at Swastika Investmart, saying markets would stay focused on “geopolitical tensions, crude oil prices and rupee movement.” The Times of India
But the direction is not fixed. A retreat in crude or signs of renewed U.S.-Iran talks could ease pressure on equities and the rupee; a longer disruption around the Strait of Hormuz would do the opposite, keeping fuel, inflation and currency risks high. ANZ analysts wrote that even if the acute oil shock fades later in 2026, a geopolitical risk premium is likely to remain in prices.
