share market
The Indian stock market closed with a decline for the third consecutive session on Monday, May 11. Amid weak global signals, selling was seen everywhere in the market. The 30-share Sensex fell 1,313 points or 1.70 per cent to close at 76,015.28, while the NSE Nifty 50 fell 1.50 per cent to 23,815.85. BSE 150 Midcap and 250 Smallcap indices fell by 1.26 per cent and 0.96 per cent respectively.
The total market capitalization of companies listed on BSE fell to about Rs 467.5 lakh crore from Rs 473.5 lakh crore in the previous session, causing investors a loss of Rs 6 lakh crore in a single session. In just three sessions, the Sensex has fallen 1,973 points or 2.5 per cent, while the Nifty 50 has declined 2.1 per cent. On a monthly basis, after a spectacular gain of 7 percent in April, these indices have gone into negative territory this month.
However, many reasons are believed to be behind this decline. The biggest reason is the prices of crude oil. There is a continuous increase in this. On Monday, an increase of more than 5 percent was seen in the prices of crude oil. On the other hand, a big decline has also been seen in the rupee. The rupee has closed down by 85 paise against the dollar. On the other hand, no solution to the Iran war has been found yet. Trump has refused to accept Iran's proposal. Let us also tell you what are the main reasons for the decline in the stock market…
Increase in crude oil prices
Brent crude, the global oil benchmark, was trading 4.32 percent higher at USD 105.7 per barrel. Ponmudi R, CEO of Enrich Money, said new concerns emerged after Donald Trump reportedly dismissed Iran's response to the US's fresh peace proposal as 'completely unacceptable', dashing hopes of an immediate diplomatic breakthrough. This development has once again brought into focus the broader risks of supply disruptions in the Strait of Hormuz and global energy markets.
weak foreign stock market
Japan's Nikkei 225 and Hong Kong's Hang Seng indices were trading lower, while US market futures signals were pointing to a weak start for Wall Street. The effect of which was also visible in the major indices of India's stock market, Sensex and Nifty.
huge fall in rupee
The rupee came under pressure and fell by 139 paise to 94.90 against the US dollar in early trade. Forex traders said rising crude oil prices, strong US dollar and continuous outflow of foreign funds weighed heavily on the domestic currency. At the interbank foreign exchange market, the rupee opened at 94.97 against the dollar and later recovered marginally to 94.90 against its previous close. However, according to the latest information, there has been a decline of 85 paise in the rupee against the dollar.
Continuous selling by FII
Foreign institutional investors (FIIs) sold shares worth Rs 4,110.60 crore on Friday. Continuous selling by FIIs impacts the domestic markets as it leads to capital outflow and weakens investor confidence. VK Vijayakumar, chief investment strategist, Geojit Investments, said that the trend of FPI outflows continues this month also. Till May 8, FPIs have sold shares worth Rs 14,232 crore through secondary markets. With this, the total selling figure of FPI through exchanges so far in 2026 has increased to Rs 2,18,540 crore. He further said that currency depreciation and concerns related to earnings growth in India have been the main factors for FPI exit from India this year.
Prime Minister Narendra Modi's appeal for savings
Some experts believe that Prime Minister Narendra Modi's appeal for savings has also affected the market mood. Amid the ongoing crisis in West Asia, the PM on Sunday appealed to Indians to use petrol, gas, diesel and similar things very judiciously and not to buy gold for a year. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that I think the market today has been more affected by Prime Minister Narendra Modi's appeal for savings rather than the non-resolution of the Iran crisis. The Prime Minister appealed to the people to reduce expenditure on petrol, diesel, gold and even on foreign travel. In short, this is an appeal for savings.
US-Iran talks stalled
Hopes of US-Iran talks were dashed after US President Donald Trump rejected Iran's peace proposal and termed it 'unacceptable'. According to Fox News, analysts believe that Washington could rapidly weaken Tehran's military capabilities if US-Iran talks fail. Meanwhile, according to reports, Trump has said that the US remains steadfast in its intention to seize Tehran's remaining enriched uranium. Israeli Prime Minister Benjamin Netanyahu said that despite recent military operations, Iran's nuclear program still remains an unresolved threat.
India VIX surge
India VIX, considered the market's 'fear gauge', rose 12 percent to 18.82. This surge in the volatility index shows that uncertainty among investors has increased and expectations of major fluctuations in the market have increased.
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