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Indian benchmark indices tumbled sharply on May 11-12, 2026, with the BSE Sensex crashing 1,313 points (1.70%) to close at 76,015, while the Nifty 50 dropped 360 points to 23,816. The sharp decline happened a day after the prime minister of India, Narendra Modi, called for mitigation of fuel usage by the citizens, deferment of buying gold for a year, and limiting unnecessary foreign travel to conserve foreign exchanges as the West Asia situation spirals out of control.

Pressures were also being applied by rising crude oil prices that have climbed to more than $105-106 per barrel since the US-Iran tensions resurfaced. Shares of jewelry, aviation, auto, and hospitality companies were sold by investors. This is what is being expressed on the market today—concerns on inflation, current account deficits, and pressure on forex reserves.

In the short term, Modi's appeal to collective responsibility, which he said was to safeguard the economy, had bypassed the markets, according to analysts. This was one of the biggest one-day percentage drops this year, with global geopolitical uncertainty afoot.