Markets

Market bloodbath as Sensex dives 900 points and jewellery stocks crash

Sensex plunges 900 points while the Rupee hits 94.91 against the Dollar, triggered by rising crude oil prices and fresh concerns over Middle East instability

PGurus Newsdesk

May 11, 2026

Sensex crashes; investors lose ₹5 lakh crore

Geopolitical tensions and PM Modi’s call for gold restraint trigger massive sell-off

Indian equity benchmarks witnessed a sharp correction on Monday morning as the Nifty slipped below the mark of 23,900. The Sensex plummeted over 1.2%—shedding more than 940 points—to trade at 76,384.65, reflecting deep investor anxiety over rising energy costs and regional instability.

Jewellery Sector Hammered by Policy Outlook

The jewellery sector bore the brunt of the market’s opening bell volatility. Stocks crashed following Prime Minister Narendra Modi’s weekend appeal to citizens to defer non-essential gold purchases to protect the nation’s foreign exchange reserves.

Major industry players saw significant double-digit or near-double-digit declines:

Senco Gold: Dropped 10.7% to Rs 326.1.
Kalyan Jewellers: Tumbled 8.37% to Rs 389.
P N Gadgil: Dipped 7.25% to Rs 675.1.
Titan Company: Slid 6.32% to Rs 4,223.9.
Indian markets face a sharp sell-off as geopolitical tensions

Global Headwinds and Oil Surge

The domestic downturn is closely tied to escalating friction in the Persian Gulf. After US President Donald Trump rejected Iran’s latest peace proposal, crude oil prices surged. Brent crude futures gained over 3% to cross $104 per barrel, a move that severely impacts India’s trade deficit and puts the rupee under immense pressure. The Indian rupee reacted by weakening 43 paise to trade at 94.91 against the US dollar in early sessions.

Divergence in Asian Markets

While India and Australia (S&P/ASX 200 down 0.71%) struggled, other parts of Asia showed resilience. South Korea’s Kospi defied the trend to hit a record high, climbing over 3.6%, while Japan’s Nikkei 225 also managed modest gains of 0.81%.

Corporate Earnings on the Horizon

Despite the broader market gloom, investors are keeping a close watch on high-profile earnings reports due later today. Companies including Canara Bank, JSW Energy, Indian Hotels Company, and PVR Inox are scheduled to release their quarterly results, which may provide some stock-specific triggers amidst the general volatility.

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