Indian Markets Open Sharply Lower Amid Global Headwinds
Indian equity benchmarks experienced a significant downturn at the start of trading on Monday, May 18, 2026. The Sensex plummeted 865 points to 74,372, while the Nifty slipped 257 points to 23,379 in early deals. This broad-market weakness was largely attributed to prevailing weak global cues and a spike in Brent crude oil prices.
Key Factors Driving the Downturn
Investor sentiment was negatively impacted by several factors. Brent crude oil prices surged to $111 per barrel, fueled by an absence of initiatives to open the Strait of Hormuz, raising concerns about energy costs and inflation. Concurrently, the Indian rupee depreciated further, slipping past the Rs 96-per-dollar mark, which typically exacerbates inflation worries and can lead to foreign portfolio investor (FPI) selling.
Adding to the pressure, the US 10-year bond yield climbed to 4.62%, a development that often draws capital away from emerging markets like India, impacting equity valuations.
Sectoral Performance: IT Bucks the Trend
Across the Sensex constituents, most stocks traded in the red. Major losers included PowerGrid, Tata Steel, Titan, HDFC Bank, IndiGo, Maruti, Bajaj Finance, and Adani Ports, all seeing declines of up to 4% in early trade. These losses reflected broad-based selling pressure across various sectors.
However, the Information Technology (IT) sector showed notable resilience amidst the market turmoil. Companies like Infosys, HCL Tech, TCS, and Tech Mahindra emerged as the only gainers on the Sensex, posting rises of up to 1.35%, indicating a defensive play by investors in export-oriented sectors.
Expert Outlook on Market Volatility
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the elevated crude oil prices could necessitate another round of petrol and diesel price hikes, which would have negative implications for inflation. He noted that the spike in US bond yields is another adverse factor for emerging market equities.
"Rupee may further depreciate aggravating the vicious cycle of rupee depreciation and FPI selling," Vijayakumar stated. He also suggested that "export-oriented sectors like pharmaceuticals will continue to be resilient." For long-term investors, he advised accumulating fundamentally strong private sector banks, which are currently attractively valued despite pressure from FPI selling.
Previous Session's Close
The cautious market sentiment extended from the previous trading session. On Friday, the Sensex had declined 160.73 points, or 0.21%, to close at 75,237.99, while the Nifty slipped 46.10 points, or 0.19%, to settle at 23,643.50. This preceding weakness was also influenced by a weakening rupee, rising crude oil prices, persistent inflation concerns, and ongoing geopolitical uncertainties.