The Indian stock market witnessed a sharp selloff on May 11, with both benchmark indices recording their biggest single-day decline since April 24. According to latest reports, the Nifty ended the session with a steep 1.51% decline at 23,815.85, while the Sensex settled at 76,015.28, down 1.73% from the previous close. The broader markets also faced significant pressure, with both the Nifty Midcap 100 and Nifty Smallcap indices losing nearly 1% each. The Sensex tumbled as much as 1.77% to hit an intraday low of 75,957.40, while the NIFTY50 declined as much as 1.56% to reach the session's low of 23,799.10.
The market decline was primarily driven by a sharp rebound in crude oil prices after hopes of a near-term peace deal in West Asia faded. As reported by Live Mint, Brent crude rebounded to $105 a barrel following President Trump's rejection of Iran's latest proposal to end the war. Iran had reportedly released a proposal on Sunday that included demands for compensation for war damages and emphasised Iranian sovereignty over the Strait of Hormuz, but the U.S. had proposed ending the fighting first before initiating talks on contentious issues including Iran's nuclear programme.
Adding to the market pressure, real estate, consumer durables, jewellery, and travel-linked stocks witnessed sharp selling pressure after Prime Minister Narendra Modi made seven key appeals to the public. According to Live Mint, these appeals included working from home, reducing petrol and diesel consumption, conducting online meetings, limiting travel, and refraining from non-essential gold purchases for a year. Hotel stocks like Chalet Hotels and Lemon Tree dropped up to 3% following PM Modi's appeal to limit overseas travel and prioritize domestic tourism. Kalyan Jewellers India lost 9.10% as PM Modi urged citizens to avoid non-essential gold purchases for one year to reduce foreign exchange pressure.
Titan Company dragged the NIFTY50 index as it closed 6.85% lower, despite reporting a 35% jump in consolidated net profit at ₹1,179 crore for Q4 FY26 compared to ₹871 crore in the same period last year. InterGlobe Aviation declined 4.73% as tourism-related stocks came under pressure following PM Modi's appeal to curb non-essential foreign travel. State Bank of India tumbled 4.36% after its March quarter earnings failed to impress investors, with domestic net interest margin falling 21 basis points YoY to 2.93%. On the positive side, Tata Consumer Products gained 8.05%, while Vodafone Idea surged 8.45% and Affle 3i closed 9.01% higher after reporting strong quarterly results.
The market sentiment was further impacted by geopolitical tensions between the U.S. and Iran, with hopes of a quick resolution being clouded after President Trump described Iran's response to his peace proposal as 'totally unacceptable'. As reported by Live Mint, the Strait of Hormuz remains effectively closed as Washington and Tehran continue to struggle toward a diplomatic resolution, keeping energy prices elevated and fuelling concerns over inflation. Urban Company shares tumbled 11% to touch an intraday low of ₹124.40 as the company's consolidated net loss widened to ₹161 crore for Q3 FY26, mainly due to investment in new service InstaHelp.
