Sensex drops 474 points, Nifty at 23,689 as crude spike fuels sell-off
Synopsis
Indian markets fell for a second straight session on 12 May as Brent crude surged past $105 a barrel and geopolitical tensions weighed on sentiment. IT, chemicals, and realty bore the brunt, while metal and oil & gas stocks bucked the trend — a split that underscores how commodity-driven the current market stress really is.
Key Takeaways
Sensex fell 474 points to an intraday low of 75,541 on 12 May , declining 0.62% .
Nifty50 slipped 126 points to 23,689 , down 0.53% — the second consecutive session of losses.
IT , chemicals , realty , cement , and financial indices each fell over 2% ; Infosys , TCS , and Wipro among top laggards.
Brent crude rose 1.09% to $105.35 per barrel ; WTI gained 1.23% to $99.28 per barrel .
Nifty Metal , Nifty Oil & Gas , and Nifty PSU Bank were the only sectors in the green.
Analysts flagged pharmaceuticals , FMCG , and capital goods as relatively resilient amid the broader sell-off.
Indian equity benchmarks extended their losing streak on Tuesday, 12 May, with the BSE Sensex falling as much as 474 points to an intraday low of 75,541 and the Nifty50 slipping 126 points to 23,689 in morning trade. Both indices declined roughly 0.5% for the second consecutive session, pressured by rising crude oil prices and persistent geopolitical tensions.
How the Indices Opened
The Sensex began the session at 75,688.39, down 326 points or 0.43% from the previous close, before extending losses to a 0.62% decline. The Nifty50 opened at 23,722.60, lower by 93 points or 0.4%, and subsequently touched 23,689 — a drop of 0.53%.
Sectors in the Red
IT, chemicals, realty, cement, and financial indices were among the top losers, each declining over 2%. Notable laggards included Infosys, Tech Mahindra, TCS, HCL Tech, Wipro, SBI Life, HDFC Life, Maruti Suzuki, ICICI Bank, Asian Paints, Dr Reddy's Laboratories, and Bajaj Finance.
In contrast, Nifty Metal, Nifty Oil & Gas, and Nifty PSU Bank were the only sectoral indices trading in positive territory, likely benefiting from elevated commodity prices and public-sector resilience.
What Market Experts Said
According to a market analyst, sectors unlikely to be affected by Prime Minister Narendra Modi's austerity appeal are expected to remain resilient. Pharmaceuticals was cited as one such segment, given its inelastic demand and additional tailwind from rupee depreciation.
FMCG was also expected to remain largely unaffected. The analyst highlighted capital goods as a sector to watch, pointing to a 67% surge in private capital expenditure in September last year as a sign of recovery in capital formation. The expert noted that demand in automobiles and renewable energy continues to remain buoyant, supporting capex growth in these segments.
Crude Oil and Global Cues
Commodity markets added to the pressure, with international benchmark Brent crude rising 1.09% to $105.35 per barrel and US West Texas Intermediate (WTI) crude gaining 1.23% to $99.28 per barrel. Elevated crude prices raise import costs for India and stoke inflation concerns, compounding investor anxiety.
Asian markets showed a mixed trend. Japan's Nikkei traded 0.48% higher and Hong Kong's Hang Seng gained 0.31%, while South Korea's KOSPI declined more than 2%. Overnight on Wall Street, the S&P 500 closed 0.19% higher and the Nasdaq settled 0.10% up, offering only limited comfort to domestic investors.
With crude above $100 per barrel and geopolitical headwinds unresolved, the trajectory of Indian equities in the near term will hinge on how quickly global risk sentiment stabilises and whether the private capex cycle can sustain its momentum.
Point of View
India's import bill widens, the rupee softens, and rate-sensitive sectors — IT, realty, financials — reprice risk simultaneously. What is underreported is the sectoral divergence: metal and PSU bank indices holding green signals that the sell-off is not indiscriminate panic but a calculated rotation away from rate-exposed names. The 67% private capex surge cited by analysts is a genuine bright spot, but it risks being buried under geopolitical noise. If crude stabilises and the capex cycle holds, the current dip could look like an overreaction in hindsight — but that is a large conditional.
NationPress
12 May 2026
Frequently Asked Questions
Why did the Sensex fall on 12 May?
The Sensex dropped 474 points to an intraday low of 75,541 on 12 May due to a combination of rising crude oil prices — Brent surged to $105.35 per barrel — and ongoing geopolitical tensions. IT and financial stocks led the decline, marking the second consecutive session of losses.
Which sectors were worst hit in today's market fall?
IT, chemicals, realty, cement, and financial indices were the top losers, each falling over 2%. Key stocks including Infosys, TCS, Wipro, HCL Tech, HDFC Life, and Bajaj Finance were among the biggest laggards.
Which sectors held up amid the broader market decline?
Nifty Metal, Nifty Oil & Gas, and Nifty PSU Bank were the only sectoral indices trading in positive territory, benefiting from elevated commodity prices and public-sector resilience.
How did global markets perform alongside Indian equities?
Asian markets were mixed — Japan's Nikkei rose 0.48% and Hong Kong's Hang Seng gained 0.31%, while South Korea's KOSPI fell more than 2%. On Wall Street, the S&P 500 closed 0.19% higher and the Nasdaq ended up 0.10%, offering limited support to Indian sentiment.
What sectors do analysts consider resilient in the current environment?
Market analysts identified pharmaceuticals — citing inelastic demand and rupee depreciation benefits — and FMCG as sectors largely insulated from the current pressures. Capital goods was flagged as a sector to watch, supported by a 67% surge in private capex recorded in September last year.
