Stock Market crash: Extending the losses for the fourth consecutive session, Indian equity benchmark indices Sensex and Nifty 50 were trading sharply lower on Tuesday, May 12, amid weakness in IT stocks, elevated crude oil prices, and persistent global uncertainty.
At 10:40 AM, the BSE Sensex benchmark was down 853.17 points, or 1.12 per cent, at 75,162.11. The NSE Nifty50 slipped 208.20 points, or 0.87 per cent, to 23,607.65
The Sensex touched a low of 75,121.66, down 893 points, or 1.17 per cent. Likewise, the Nifty 50 hit an intraday low of 23,577.85, down 238 points, or 1 per cent.
On the sectoral front, the majority of the indices were trading in the red. The Nifty IT was the top laggard down over 3.5 per cent, followed by Nifty Realty, Consumer Durables, Media, and Financial Services falling over 1 per cent each. Among others, Nifty Auto, Bank, FMCG, Pharma, Healthcare and Chemicals slipped up to 1 per cent. On the contrary, Nifty Metal, PSU Bank, and Oil & Gas were trading higher.
In the broader markets, Nifty Midcap 100 fell 0.77 per cent, and Nifty Smallcap 100 was down by 1.35 per cent.
However, India VIX was almost flat at 18.68 levels, up by 0.7 per cent.
In today’s sell-off, investors lost around ₹3.6 trillion, as the total market capitalisation of all BSE-listed companies slipped to ₹462.98 trillion, compared with the previous session’s all-India market capitalisation of ₹466.68 trillion.
Stock Market Crash Today: Here’s why the Sensex and Nifty are falling today:
IT stocks drag markets lower: IT stocks came under sharp selling pressure after OpenAI’s announcement to launch the OpenAI Deployment Company – a new entity to help organisations build and deploy AI systems for critical operations.
Nifty IT index tanked nearly 4 per cent as heavyweights like Persistent Systems, TCS, Infosys, LTIMindtree, Tech Mahindra, HCL Technologies, and Wipro fell in the range of 3 to 5 per cent. Coforge, Mphasis, and Oracle Finance Services slipped up to 3 per cent.
“The IT sector witnessed sharp weakness, declining more than 3%, amid continued pressure from weak global technology cues and cautious investor positioning,” said Ponmudi R, chief executive officer at Enrich Money.
Crude oil remains above $100/barrel: Brent crude is trading at the $105 per barrel level, supported by persistent supply concerns amid escalating US–Iran tensions around the Strait of Hormuz. Last checked, Brent crude rose 0.66 per cent to $104.90 per barrel, while US West Texas Intermediate (WTI) crude was up 0.92 per cent at $99.97.
Ponmudi said the US Oil is trading near the $99 zone, expecting appreciation and approaching the key $100 psychological level. “Immediate resistance stands at $102–$104; a sustained move above this band could extend the rally toward $105-$107. On the downside, $96 acts as immediate support, with $94 as a stronger base should selling pressure resurface. The near-term bias remains cautiously bullish, with direction contingent on ongoing geopolitical developments,” he said.
Concerns around US-Iran war: On Monday, US President Donald Trump said the ceasefire with Iran is “on life support” after dismissing Tehran’s latest offer to end the conflict, calling it “totally unacceptable.”
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Washington has been putting forward “unreasonable demands” to halt the war, while parliament speaker Mohammad Bagher Ghalibaf warned that Tehran is prepared to respond to any aggression, which he said would leave the US “surprised.”
“There is no clarity on peace talks between the US & Iran, which has led to a renewed uptick in global crude prices. With the rupee on the boil, breaching the 94 per dollar mark and the continuing FII fund outflows from the domestic equities, there will be a lot of pessimism in the near term,” said Ankur Punj, managing director and business head at Equirus Wealth. Additionally, according to JM Financial, equity markets turned negative after the Prime Minister’s address calling for conservation of foreign exchange reserves through lower gold imports, reduced fuel and fertiliser usage, and moderation in overseas travel.
JM Financial believes the speech appears targeted and could signal gradual austerity measures if tensions in West Asia persist. It further cautioned that a prolonged conflict may slow GDP growth to 6-6.5 per cent and widen the current account deficit to around 1.9 per cent of GDP, as remittance inflows could also come under pressure. It added that expanding strategic petroleum reserves should be a key policy focus. ========================== Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.