The Indian stock market witnessed a severe selloff on May 12, with both benchmark indices experiencing significant declines. According to reports from The Hindu BusinessLine, BSE Sensex tumbled 1,456.04 points or 1.92% to close at ₹74,559.24, while NSE Nifty tanked 436.30 points or 1.83% to end at 23,379.55. The sharp decline marked a continuation of the bearish sentiment that has gripped the markets in recent sessions, with investors adopting a cautious approach amid prevailing market conditions. As per The Economic Times, the selloff was part of a fourth straight session of losses, with the market rout wiping out almost ₹12 lakh crore in investor wealth.
The market decline was broad-based, affecting both major indices significantly. As reported by The Hindu BusinessLine, Sensex dropped 1,456.04 points to close at ₹74,559.24, representing a 1.92% decline. Similarly, Nifty fell 436.30 points to end at 23,379.55, marking a 1.83% decrease. The sharp fall pushed Nifty below the 23,400 mark, indicating the severity of the selloff and the sustained pressure on the market throughout the trading session. According to The Economic Times, market breadth remained firmly negative with 47 Nifty stocks ending in the red and the NSE advance-decline ratio standing at 1:6.
The selloff was led by IT stocks and financial heavyweights, with all sectoral indices ending lower. As reported by The Hindu BusinessLine, Nifty Realty declined by more than 4%, while Nifty IT fell by over 3%. Nifty Consumer Durables dropped 3.59%, Nifty Auto declined 2.28% and Nifty Media slipped 2.77%. Shares of TCS, Infosys and HCLTech hit fresh 52-week lows after concerns mounted over rising competition in AI-led technology services following OpenAI's latest entry into the segment. The Nifty Bank index declined 885 points to 53,555, while the Nifty Midcap index dropped 1,554 points to close at 59,705. Among individual stocks, Shriram Finance, Tech Mahindra and Adani Ports were among the top losers on the Nifty, while JSW Infrastructure, UPL, NLC India, Kalyan Jewellers and L&T Finance Holdings led declines in the midcap space.
The current market decline reflects multiple external pressures that have intensified bearish sentiment. According to The Hindu BusinessLine, one of the key triggers behind the sharp decline was the spike in crude oil prices amid escalating tensions in West Asia. Brent crude surged past $107 per barrel after concerns loomed over a 'weak' ceasefire deal between the United States and Iran, with US President Donald Trump rejecting Iran's response to the US proposal for a peace deal. Markets also remained cautious after Prime Minister Narendra Modi's recent remarks urging citizens to prioritise work from home, avoid international travel for a year and curb gold purchases amid the fuel crisis linked to the West Asia conflict. Further pressure came from persistent foreign institutional investor selling, with FIIs offloading equities worth ₹2,15,404 crore this year. The rupee also weakened to a record closing low of 95.63 against the US dollar amid higher demand for the greenback and elevated oil prices, while India VIX — the market's fear gauge — rose 2% to 18.87, reflecting heightened volatility and investor anxiety.
The selloff extended beyond major indices to affect broader market segments. As reported by The Hindu BusinessLine, NIFTY Midcap 100 index declined 2.54% and NIFTY Smallcap 100 index fell 3.17%, indicating that the selling pressure was widespread across market capitalizations. Adani Ports was the top loser in NIFTY50, falling 4.32% to close at ₹1,691, while Shriram Finance, Tech Mahindra, HCL Technologies, Jio Financial Services, Adani Enterprises, TCS and Titan also fell between 3.5% and 4.3%. On the positive side, ONGC, Hindalco, State Bank of India and Bharti Airtel were among the notable gainers in the NIFTY50 index, providing some relief amid the broader market decline.
