Stock Markets Today: Markets Open Lower as Trump Says Iran Ceasefire 'On Life Support'; Sensex down 490 pts

Mumbai, May 12: Domestic equity markets opened in negative territory on Tuesday, weighed down by a fresh flare-up in geopolitical anxiety after US President Donald Trump declared that the ceasefire with Iran was “on life support,” rattling investor sentiment across global markets and amplifying concerns over sustained crude oil supply disruptions.

The Sensex fell 491.50 points or 0.65% to 75,523.78, while the Nifty 50 slipped 163.10 points or 0.68% to 23,652.75 at 9:25 am, extending Monday’s steep losses as technology stocks led the decline. Asian markets offered little comfort, trading in a mixed fashion, while elevated oil prices above $100 per barrel continued to add to the pressure on India’s import-heavy economy.

Gainers & Losers

Among Nifty 50 constituents, the top five gainers in early trade were ONGC, which surged 3.70% to ₹291.40 on rising crude prices, Hindalco which climbed 1.50% to ₹1,038.90, State Bank of India which rose 0.61% to ₹979.50, Bajaj Auto which added 0.50% to ₹10,648.50, and Tata Steel which edged up 0.41% to ₹212.96. On the losing side, Infosys led the declines with a fall of 2.80% to ₹1,144, followed by Tech Mahindra which dropped 2.43% to ₹1,422, TCS which fell 2.26% to ₹2,338.90, HCL Technologies which shed 1.76% to ₹1,173.90, and SBI Life Insurance which declined 1.60% to ₹1,854.30, reflecting broad-based selling in the technology and financial services space.

Broader Markets & Sectoral Indices

In the broader markets, the Nifty Midcap 100 fell 0.14% to 61,170.95 while the Nifty Smallcap 100 declined 0.21% to 18,486.60, suggesting the selling pressure extended beyond large-caps. Among sectoral indices, Nifty IT was the sharpest decliner, tumbling 2.29% to 28,658.85, while Nifty Financial Services fell 0.48% to 25,531.10. On the gaining side, Nifty Metal advanced 0.70% to 13,016.50 and Nifty Oil & Gas rose 0.55% to 11,401.70, both benefiting from elevated commodity prices linked to the Middle East conflict.

Iran War Update

Trump’s blunt assessment came after Tehran’s response to a US peace proposal laid bare deep disagreements on several fronts, including Iran’s demand for an end to the US naval blockade, resumption of Iranian oil sales, cessation of hostilities across all theatres including Lebanon, and compensation for war damage. Tehran also firmly reiterated its sovereignty over the Strait of Hormuz, through which roughly one-fifth of global oil and liquefied natural gas flows, keeping supply disruption fears at the fore. Iran’s parliament speaker Mohammad Baqer Qalibaf further hardened the rhetoric, warning that Iran’s armed forces stood ready to respond decisively to any act of aggression.

PM Modi on Fuel Usage

At home, Prime Minister Narendra Modi on Sunday urged citizens to adopt energy conservation measures as surging global crude prices put mounting pressure on India’s foreign exchange reserves, calling for a revival of work-from-home and online meeting practices widely used during the COVID-19 pandemic. Modi asked people to use public transport, carpool where possible, avoid buying gold and cut non-essential overseas travel for at least a year to conserve foreign exchange. He also urged farmers to reduce fertiliser use by as much as half and called on families to cut cooking oil consumption, describing it as both healthy and patriotic.

Rupee Vs Dollar

The Indian rupee fell to a fresh record low of 95.55 per dollar on Tuesday, down 0.2% from its previous close, eclipsing its previous all-time low of 95.4325 hit last week. The slide reflected investor anxiety over the fraying ceasefire in the Middle East, which triggered a fresh rise in oil prices and deepened concerns over the economic toll on a net energy-importing economy like India.

Asian Markets

Asian markets were mixed in early trade, with Japan’s Nikkei 225 gaining 0.50% and Hong Kong’s Hang Seng adding 0.49%, while Indonesia’s JSX Composite fell 0.92% and Australia’s ASX All Ordinaries slipped 0.43%. US markets had closed on a note of cautious optimism on Monday, with investors drawing some comfort from the continued diplomatic engagement between Washington and Tehran despite Trump’s hardening public stance on the ceasefire.

Oil Prices

Oil prices held firm in early Asian trade, with Brent crude futures up 0.29% at $104.51 per barrel and US West Texas Intermediate rising 0.32% to $98.38, extending Monday’s near 2.8% rally driven by Strait of Hormuz supply fears. Analysts at KCM Trade noted that as long as US-Iran negotiations remain inconclusive and physical flows through the strait stay restricted, prices are likely to hold above the $100 mark. Global gold prices also remained elevated as investors sought safe-haven assets amid the geopolitical uncertainty.

Monday Closing 

Indian equities had closed sharply lower on Monday, with the Sensex tumbling 1,312.91 points or 1.70% to 76,015.28 and the Nifty declining 360.30 points or 1.49% to 23,815.85, as broad-based selling intensified in the final hour despite a brief mid-session recovery. Market breadth was deeply negative, with 2,779 shares declining against just 1,390 advances, while India VIX surged over 10%, signalling heightened trader anxiety heading into Tuesday’s session.

Sources:

• bseindia.com
• https://www.nseindia.com/market-data/top-gainers-losers
• https://www.nseindia.com/market-data/live-market-indices
• https://www.reuters.com/world/china/trump-rejects-irans-response-us-peace-proposal-unacceptable-2026-05-11/
• https://www.reuters.com/business/energy/oil-prices-rise-fragile-us-iran-talks-sustain-supply-worries-2026-05-12/
• https://www.reuters.com/world/india/rupee-hits-record-low-fraying-us-iran-ceasefire-keeps-oil-prices-boil-2026-05-12/