The Indian stock market witnessed a severe selloff on Tuesday, with Sensex crashing over 900 points to close at 75,215.02 and Nifty declining 223.30 points to 23,592.55. According to latest market reports, the benchmark indices extended losses for the fourth consecutive session amid sharp selling in IT, financial and broader market stocks. Market breadth remained weak with 2,653 shares declining against 1,006 advances, while India VIX traded near 18.9 indicating heightened volatility. The crash was primarily driven by elevated crude oil prices and persistent foreign institutional investor outflows, with ₹8,438 crore worth of FII selling on May 11 marking the highest daily outflow since April 24.
Oil India emerged as the top Nifty gainer, surging 39.00 points or 8.55% to ₹495.00 as elevated crude oil prices boosted sentiment around oil-linked stocks. According to latest market data, Paradeep Phosphates followed closely with a 9.56 point gain or 7.80% to ₹132.15, while Lloyds Engineering Works posted strong gains of 4.19 points or 6.33% to ₹70.35. Jana Small Finance Bank also showed strong performance with a 28.60 point rise or 6.28% to ₹483.70, recording significant trading volumes. Other notable gainers included Oil & Natural Gas Corporation rising 15.45 points or 5.50% to ₹296.45, Black Box gaining 41.40 points or 5.25% to ₹829.50, and Atlanta Electricals surging 86.40 points or 5.00% to ₹1,814.80. Sterlite Technologies, Refex Industries, and CMS Info Systems also featured among the top gainers.
IT stocks remained under heavy selling pressure, with the Nifty IT index falling 3.55% to its lowest level since May 2023. Infosys led the declines with shares falling 3.02% to ₹1,141.40, recording the highest trading volume of 15.92 lakh shares. As reported by multiple market sources, TCS, Tech Mahindra, HCL Technologies and Wipro were among the major drags, with the top five Nifty losers all coming from the IT sector. The sector decline was attributed to weak earnings outlook, concerns over slowing demand for traditional IT services and uncertainty over the U.S. interest rate trajectory ahead of key inflation data. Persistent Systems declined 4.81% to emerge as the top loser on the BSE Midcap index, while Mphasis, Hexaware Tech, HPCL, JSW Infrastructure and Coforge were also among the major losers.
Broader markets remained weak with the Nifty Midcap 100 index falling 1.19% and Smallcap 100 index declining 1.59%. Realty, media, private bank and pharma indices also traded lower, while metal, oil & gas and energy stocks showed gains. UPL fell 2.86% to emerge as the top loser on the BSE Midcap index, with Persistent Systems declining 4.81% and JSW Infrastructure, Kaynes Technology, UPL, Relaxo Footwear and KPIT Technologies among major losers. Oil India surged 6.77% to emerge as the top gainer on the BSE Midcap index, while Biocon, Oberoi Realty, Blue Star and NMDC were among the key gainers. Market breadth remained weak with 2,653 shares declining against 1,006 advances.
According to market analysts, the 23,800 level is likely to act as immediate support for Nifty 50, as a decisive break below it can open the door for a move toward 23,700 and then 23,500. On the upside, 24,000 will be the key resistance level to watch. The ongoing US-Iran conflict continues to keep global risk appetite subdued, with Brent crude trading above $104-105 per barrel after US President Donald Trump said the ceasefire with Iran was "on life support." Enrich Money expects Indian markets to remain cautious and volatile amid elevated crude prices, weakness in the rupee and continued FII selling, with the rupee sinking to a new low of 95.50 against the dollar after Trump's comments on Iran.
