Sensex falls 1,313 points as Brent crude hits $105 again

What drove the sharp fall at the open

Indian benchmark indices started the week under pressure as investors reacted to renewed uncertainty around the West Asia conflict and a jump in crude oil prices. Selling was broad-based from the opening bell, with risk appetite weakening across sectors linked to consumption and imports.

At 9:27 am, the S&P BSE Sensex was down 847.62 points at 76,480.57, while the NSE Nifty50 fell 249.65 points to 23,926.50. Market participants linked the early weakness to crude moving higher after fresh diplomatic setbacks between the US and Iran.

Key index levels through the day

The selloff deepened as the session progressed. By around 3:20 pm, the Sensex was down 1,346.52 points at 75,981.67, while the Nifty50 traded 369.15 points lower at 23,807.00.

The Sensex eventually closed down 1,312.91 points, or 1.70%, at 76,015.28. In intraday trade, it fell as much as 1,370.79 points, or 1.77%, to 75,957.40.

The Nifty ended 360.30 points, or 1.49%, lower at 23,815.85. Over three sessions since Thursday, the Nifty has dropped over 2% or 515 points, while the Sensex has fallen by nearly 1,950 points or 2.5%.

Crude oil back above $105 and why it matters

Crude oil was a central driver of sentiment. Brent crude prices surged back above the $105-per-barrel mark after hopes of a near-term breakthrough in US-Iran peace talks weakened.

An expert cited in the report said US President Donald Trump dismissed Iran’s response to a peace proposal as “totally unacceptable,” which dampened expectations of immediate de-escalation. With India importing a majority of its crude needs, higher oil prices are closely watched for their potential impact on the current account deficit, the rupee, imported inflation, and corporate margins.

PM Modi’s austerity appeal adds a domestic trigger

Alongside geopolitical concerns, investors also reacted to Prime Minister Narendra Modi’s public appeal urging citizens to reduce consumption of imported items. The call included reducing petrol and diesel usage, postponing gold purchases, and avoiding foreign travel.

In a speech delivered on May 10 at a rally organised by the Telangana BJP in Hyderabad, Modi suggested steps such as using metro rail services in cities, carpooling, increased use of electric vehicles, using railways for parcel movement, and working from home. He also called for postponing gold purchases and foreign travel for one year, emphasising the need to conserve foreign exchange during the West Asia crisis.

What strategists said: two “headwinds” for markets

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said markets were facing two headwinds.

First, he pointed to the West Asia crisis, noting that an expected resolution had “slipped away” after President Trump rejected Iran’s letter, and that Brent crude had “spiked to $105,” potentially aggravating the current account deficit. Second, he said Modi’s appeal to curb consumption of petrol and diesel, gold, chemical fertilisers and edible oil, and to avoid foreign travel, was being read as crisis management aimed at the current account deficit problem driven by high crude prices.

Vijayakumar added that the austerity call could have slightly negative implications for economic growth in FY27 if consumption slows, and that sectors linked to the appeal such as petroleum, chemical fertilisers, gold, air travel, hotels and related segments could be sentimentally impacted. He also said sectors like pharmaceuticals that are not impacted in any manner could remain relatively resilient.

Stocks in focus: Titan, banks and aviation under pressure

Selling was visible across major names. After the opening bell, HCL Technologies and NTPC were the only gainers among Sensex stocks, rising 0.21% and 0.01% respectively.

Titan Company saw the sharpest early fall, down 6.37% at one point. In the Nifty50, Titan fell 5.6% to Rs 4,256.50 amid concerns around gold demand after the Prime Minister’s remarks, and later commentary in the report noted Titan was among the biggest losers, dropping by nearly 7%.

Banks and aviation stocks also stayed under pressure. State Bank of India declined 3% to Rs 988.70 in early trade, while IndiGo parent InterGlobe Aviation slipped 3.55% to Rs 4,362 as higher crude weighed on aviation costs and sentiment.

Market breadth and global cues

Broader market sentiment remained weak, with midcap and smallcap stocks also seeing selling as investors moved away from riskier assets. In other regions, Japan’s Nikkei ended lower, while South Korea’s Kospi and the Shanghai SSE Composite and Hong Kong’s Hang Seng settled higher. European markets were trading mostly lower, while US markets ended higher on Friday.

Snapshot table: the day’s key numbers

What investors will track next

Market participants are expected to keep a close watch on crude oil movements, developments in West Asia, and any further signals from the government on import management and consumption trends. Experts quoted in the report said volatility could remain elevated if crude stays above the psychologically important $100-per-barrel level.

Conclusion

Monday’s decline extended the market’s losing streak to a third session, with the Sensex closing down 1,312.91 points and the Nifty ending below 24,000 as Brent surged above $105. Near-term sentiment is likely to hinge on crude prices, diplomatic developments in West Asia, and how investors interpret the government’s messaging on conserving foreign exchange.