Nexus News Alert | New Delhi, May 12, 2026 — The Indian stock market witnessed a sharp Stock Market Crash for the second consecutive day on Tuesday. Both BSE Sensex and NSE Nifty opened deep in the red, with Sensex plunging more than 700 points in early trade amid growing concerns over global oil prices and Prime Minister Narendra Modi’s appeal to stop buying gold.
The Stock Market Crash was triggered by multiple factors, including escalating tensions in the Middle East, rising crude oil prices, and PM Modi’s call to citizens to avoid gold purchases for one year and conserve fuel.
Market Performance on Tuesday
At the opening bell, the Sensex dropped over 700 points from its previous close of 76,015 to trade below 75,300 levels. Similarly, the Nifty fell more than 160 points and was trading below 23,650.
IT stocks were among the worst hit. Major companies like TCS, Infosys, and Tech Mahindra saw sharp declines of 2.5% to 3.6% in early trading.
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PM Modi’s Appeal Adds to Market Jitters
Prime Minister Narendra Modi’s appeal asking people not to buy gold for at least one year and to reduce consumption of petrol and diesel has created significant concern in the market. The appeal was made to protect foreign exchange reserves amid the ongoing West Asia conflict and disruptions in the Strait of Hormuz.
The government has reiterated that there is no fuel crisis in the country and supplies remain adequate. However, the message has led investors to worry about possible slowdown in consumer spending, especially in the jewellery sector.
Why the Stock Market Crash is Happening
- Rising global crude oil prices due to Middle East tensions
- PM Modi’s appeal to stop buying gold and save fuel
- Heavy selling in IT and banking stocks
- Fears of higher inflation and slower economic growth
Brent crude was trading above $104 per barrel, adding pressure on oil-importing nations like India.
Government’s Assurance Amid Stock Market Crash
Officials have clarified that refineries are operating at full capacity and there are no shortages of petrol, diesel, or LPG. Despite this, oil marketing companies are facing daily under-recoveries of ₹1,600–1,700 crore.
Impact on Different Sectors
| Sector | Performance in Early Trade |
|---|---|
| IT Stocks | Down 2.5% to 3.6% |
| Jewellery Stocks | Sharp decline expected |
| Oil & Gas | Mixed, pressure from crude prices |
| Banking | Moderate selling |
What Should Investors Do?
Market experts advise caution during this Stock Market Crash. They recommend focusing on fundamentally strong companies and avoiding panic selling. Long-term investors may look for buying opportunities once the market stabilises.
The government has assured that all necessary steps are being taken to maintain economic stability. PM Modi’s appeal is being seen as a patriotic call to reduce unnecessary imports and support the national economy during challenging times.
Nexus News Alert is closely tracking the Stock Market Crash, global oil prices, and government measures. We will bring you the latest updates on market movements, sectoral performance, and expert analysis.
