Market Desk: The beginning of the week was very bad for the Indian stock market. As soon as the market opened on Monday, May 11, 2026, heavy selling pressure was seen, due to which the Sensex and Nifty crashed. BSE Sensex fell by almost 1100 points and reached near 76,200 level, while NSE Nifty also fell by more than 300 points and slipped below 23,900. Due to this huge fall, investors’ wealth worth Rs 5 lakh crore was destroyed in just a few hours. Many major global and domestic reasons are being held responsible for this uproar in the market.
1. US-Iran peace talks fail: increased risk of war
The biggest reason for the decline in the market is the increasing tension in West Asia. The fear of war in the Gulf region has deepened after US President Donald Trump rejected Iran’s peace proposal as ‘unacceptable’. Failure of peace talks has increased nervousness among investors, whose direct impact is visible on the global and Indian markets.
2. Impact of PM Modi’s ‘austerity’ appeal
Prime Minister Narendra Modi has recently appealed to the countrymen to save fuel, avoid unnecessary purchase of gold and avoid non-essential foreign trips. Investors have taken this PM’s ‘Austerity’ advice as a sign of slowing down of consumption and economic growth in the future. According to experts, this appeal has shaken the confidence of investors.
3. Crude oil prices on fire: crosses $105
Due to the fear of disruption in crude oil supply due to the Iran-US dispute, Brent Crude prices have crossed $ 105 per barrel. India imports more than 85% of its oil requirement, hence the increase in oil prices poses a threat to the country’s current account deficit (CAD) and inflation, which is a negative sign for the stock market.
4. Rupee at record low: near 95 per dollar
The Indian Rupee has fallen to its historical low due to rising crude oil prices and huge demand for the dollar. Rupee fell by 40 paise on Monday 94.88 per dollar Open at level. The weakness of the rupee has led to increased selling among foreign portfolio investors (FPIs) as they fear the value of their investments falling.
5. Heavy selling in banking and auto stocks
Banking and auto sectors had the biggest role in bringing the market down. Heavy losses were recorded in big stocks like HDFC Bank and SBI. At the same time, after PM Modi’s appeal to save fuel, huge selling was seen in auto stocks (like Tata Motors and Mahindra). According to experts, until global tension does not subside, market instability may persist.
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