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The Indian stock market witnessed a sharp selloff in Monday’s trade on 11 May. as investor sentiment weakened amid a sharp rebound in crude oil prices after hopes of a near-term peace deal in West Asia faded. Adding to the pressure, realty and consumer durable stocks came under heavy selling after Prime Minister Narendra Modi urged a spate of measures.
The Nifty ended the session with a steep 1.51% decline at 23,811, while the Sensex settled at 76,072, down 1.73% from previous close. Both benchmark indices recorded their biggest single day drop since April 24.
The broader markets also witnessed heavy selling pressure, with both the Nifty Midcap 100 and Nifty Smallcap indices losing nearly 1% each. Hopes of a quick resolution between the U.S. and Iran were clouded after U.S. President Donald Trump described Iran’s response to his peace proposal as “totally unacceptable.”
The Indian stock market saw a sharp selloff on May 11 due to weakened investor sentiment. This was influenced by a rebound in crude oil prices after hopes for a peace deal in West Asia faded, and selling pressure on realty and consumer durable stocks following Prime Minister Modi's appeals for specific measures.
Prime Minister Modi's appeal to limit overseas travel and prioritize domestic tourism led to a drop of up to 3% in hotel stocks like Chalet Hotels and Lemon Tree. This suggests a potential shift in consumer behavior towards domestic travel, impacting the hospitality sector.
Geopolitical tensions between the US and Iran, particularly after President Trump described Iran's response to a peace proposal as 'unacceptable,' led to crude oil prices rebounding. The Strait of Hormuz remaining largely closed also contributed to elevated energy prices.
For Nifty, 24,000 or the 50-day SMA is a crucial support zone, with resistance at 24,400. For Sensex, 76,500 acts as a support zone, and 78,000 is the immediate resistance. Trading below these support levels could accelerate selling pressure.
On May 11, market experts recommended buying Carborundum Universal, UNO Minda, PNB, LIC, Lodha Developers, Bharat Wire, and M&M Financial Services for intraday trading, providing specific target prices and stop loss levels for each.
Iran on Sunday reportedly released a proposal to end the war on all fronts, which included a demand for compensation for war damages and emphasised Iranian sovereignty over the Strait of Hormuz. The U.S., however, had proposed ending the fighting first before initiating talks on more contentious issues, including Iran’s nuclear programme.
Markets initially viewed the development as a possible off-ramp to the conflict before Trump rejected the terms outright. Following his rejection of Iran’s latest proposal, crude oil prices regained strength, with Brent crude rebounding to $105 a barrel.
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.
Meanwhile, real estate, consumer durables, jewellery, and travel-linked stocks witnessed sharp selling pressure after PM Modi made seven key appeals, including working from home, reducing petrol and diesel consumption, conducting online meetings, limiting travel, and refraining from non-essential gold purchases for a year.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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