Indian Markets Face Steep Decline
India's benchmark stock indices, the Sensex and Nifty, opened with a significant gap-down on Tuesday, May 12, 2026, reflecting cautious investor sentiment. The downturn was primarily attributed to ongoing geopolitical tensions between the US and Iran, which have kept crude oil prices high and dampened risk appetite across global markets.
In early trade, the BSE Sensex plummeted as much as 474 points. By 9:18 am, it was down 418.82 points, or 0.55%, trading at 75,596.46. Similarly, the NSE Nifty dropped 102.50 points, or 0.43%, to 23,713.35, after briefly touching an intraday low of 23,689.10.
IT Sector Leads Losses
The information technology sector bore the brunt of the selling pressure. Among the Sensex constituents, Infosys saw a notable decline of 2.57%, trading at Rs 1146.55. Tech Mahindra followed, dropping 2.08%, while Tata Consultancy Services (TCS) and HCL Tech were down 1.94% and 1.70%, respectively. ICICI Bank also recorded a decrease of 0.88%.
Geopolitical Tensions and Austerity Measures Weigh Heavily
The prevailing uncertainty surrounding the US-Iran conflict and the resultant spike in crude oil prices were key drivers of market volatility. Investors remained wary, pulling back from riskier assets.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., highlighted an additional factor impacting specific sectors. "The austerity call by the prime minister impacted the stock prices of sectors which are expected to be negatively affected by reduced consumption. Stocks of sectors like jewellery, travel and hotels bore the brunt of selling yesterday," Vijayakumar stated. He further advised monitoring the West Asia geopolitical situation and crude prices, noting that these sectors could rebound sharply if crude oil prices fall and austerity measures become less relevant.
Nifty's Support and Resistance Levels
Technical analysts offered insights into potential market movements. Vatsal Bhuva, Technical Analyst at LKP Securities, suggested that the Nifty 50 index might find immediate support near the 23550–23600 range, where some buying interest could emerge. However, any recovery rally is expected to encounter selling pressure around the 23800 mark, which has now become a crucial resistance level.
Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Ltd., added that if the index sustains above the 23,555 support zone, a technical rebound towards 24,000–24,100 remains possible in the near term. Conversely, a decisive breakdown below 23,555 could intensify selling pressure, pushing the index towards the 23,350 support level.
Global Markets Mixed
Broader Asian markets displayed mixed performance on Tuesday. Japan’s Nikkei 225 registered a gain of 0.62%, while South Korea’s Kospi declined by 1.52%. Hong Kong’s Hang Seng index saw an increase of 0.65%. Overnight, Wall Street ended positively, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closing in the green.
Previous Session's Performance
The current downturn followed a significant fall in the previous trading session. On Monday, the Sensex plunged 1312.91 points, or 1.70%, to settle at 76,015.28. The Nifty also edged down 360.30 points, or 1.49%, closing at 23,815.85.