HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key gauges fall for 4th straight session amid rising geopolitical tensions
May-12-2026

Indian equity benchmarks ended lower for the fourth consecutive session on Tuesday, with the Sensex and Nifty tumbling nearly 2 per cent, as elevated crude oil prices and uncertainty surrounding the West Asia conflict clouded markets' confidence. Unabated foreign fund outflows and the rupee depreciating to a lifetime low also hit investor sentiment.

Some of the important factors in trade:

Crisil cuts India’s FY27 GDP forecast to 6.6%, flags rising inflation: Ratings agency - Crisil has projected that India’s real gross domestic product (GDP) growth to slow to 6.6% in fiscal year 2026-27 (FY27), down from 7.6% in FY26, citing high crude and commodity prices, weaker global growth, and a below-normal monsoon. 

Unemployment rate in urban India declines to 6.6% in January-March 2026: Ministry of Statistics and Programme Implementation (MoSPI) in its Periodic Labour Force Survey (PLFS) has showed the unemployment rate among people aged 15 and above has declined marginally to 6.6% in January-March 2026 from 6.7% in October-December 2025. 

Indian industry needs to leverage, utilise India's newly finalised FTAs: Commerce Secretary Rajesh Agrawal has urged Indian industry to leverage and utilise India's newly finalised free trade agreements (FTAs), as these pacts offer trade and investment opportunities. He said that the country's track record in FTA utilisation is not great. 

States’ average PCI likely to attain high-income thresholds by 2047 if growth persists: Reserve Bank of India (RBI) Deputy Governor Poonam Gupta has said that by 2046-47, the average per capita income (PCI) of states could reach high-income thresholds if the country's two-decade-long growth trajectory persists. 

Global front: European markets were trading lower as hopes for a U.S.-Iran peace deal diminished and data showed German inflation increased for the second consecutive month as a result of another rise in energy prices due to the Iran war. Asian markets settled mixed as a recent tech-led rally lost steam and oil prices extended their surge amid fresh doubts over the U.S.-Iran ceasefire.

Finally, the BSE Sensex fell 1456.04 points or 1.92% to 74,559.24 and the CNX Nifty was down by 436.30 points or 1.83% to 23,379.55. 

The BSE Sensex touched high and low of 75,741.96 and 74,449.50, respectively. There was 1 stock advancing against 29 stocks declining on the index.

The top losing sectoral indices on the BSE were Realty down by 4.22%, IT down by 3.67%, Consumer Durables down by 3.35%, Industrials down by 3.00% and Utilities down by 2.94%, while there were no gaining sectoral indices on the BSE.

The lone gainer on the Sensex was SBI up by 0.12%. On the flip side, Tech Mahindra down by 4.44%, Adani Ports &SEZ down by 4.39%, HCL Technologies down by 4.11%, TCS down by 3.84% and Titan Company down by 3.60% were the top losers.

Meanwhile, Reserve Bank of India (RBI) Deputy Governor Poonam Gupta has said that by 2046-47, the average per capita income (PCI) of states could reach high-income thresholds if the country's two-decade-long growth trajectory persists. Gupta noted that states falling below the median are projected to drive a significant portion of this expansion, reinforcing the broad-based nature of India's growth story.

She stated ‘Realising and accelerating the path to this potential, however, would require moving towards state-specific growth strategies that are anchored in local strengths, structural realities, and their respective stages of development.’ India's economic growth has consistently accelerated since the early 1980s. Average real gross domestic product (GDP) growth has increased from 5.7% in the 1980s to 5.8% in the 1990s, 6.3% in the 2000s, 6.6% in the 2010s, and reaching 7.7% in the most recent four-year period. The pace of growth is even more pronounced in per capita income.

Per capita income has grown from about $274 in 1981 and $306 in 1991 to nearly $2,700 in 2024, marking almost a 10-fold increase. She mentioned ‘Importantly, while it took over two decades for per capita income to double initially, it has expanded by almost five-fold in the subsequent two decades, indicating a clear structural shift in growth momentum.’

CNX Nifty touched high and low of 23,757.55 and 23,348.40, respectively. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.70%, Hindalco up by 1.86%, SBI up by 0.26% and Bharti Airtel up by 0.17%. On the flip side, Adani Ports &SEZ down by 4.32%, Shriram Finance down by 4.31%, Tech Mahindra down by 4.21%, HCL Technologies down by 4.01% and JIO Financial Servies down by 3.99% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 36.72 points or 0.36% to 10,232.71, France’s CAC fell 50.18 points or 0.63% to 8,006.20 and Germany’s DAX lost 328.78 points or 1.37% to 24,021.50.

Asian markets settled mixed on Tuesday as a recent tech-led rally lost steam and Brent crude surged above $107 per barrel amid heightened tensions in West Asia. US President Donald Trump said the ceasefire with Iran was at its weakest and on massive life support, a day after he rejected Tehran’s proposal to end the months-long war as totally unacceptable. Reports indicated that the Trump administration is considering renewed military action against Iran as negotiations remain deadlocked and tensions continue to rise over the closure of the Strait of Hormuz. Investors also awaited cues from the release of US CPI data for April and a crucial meeting between US President Donald Trump and his counterpart Xi Jinping in Beijing from May 13-15. Japanese shares gained tracking Wall Street’s gains overnight and as investors shrugged off data that showed Japanese household spending fell more than expected in March from a year earlier. Meanwhile, Seoul shares ended sharply down due to profit taking after a record-breaking run. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,214.49

-10.53

-0.25

Hang Seng

26,347.91

-58.93

-0.22

Jakarta Composite

6,858.90

-46.72

-0.68

KLSE Composite

1,750.56

5.25

0.30

Nikkei 225

62,742.57

324.69

0.52

Straits Times

4,946.00

3.23

0.07

KOSPI Composite

7,643.15

-179.09

-2.29

Taiwan Weighted

41,898.32

108.26

0.26
  RELATED NEWS >>
Most Viewed >>
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.