Indian stock markets took a sharp hit on Monday morning, with the Sensex shedding over 1,000 points and the Nifty50 tumbling below 23,900. The immediate trigger was US President Donald Trump’s blunt rejection of Iran’s latest peace proposal over the weekend, which sent crude oil prices roaring past $105 a barrel overnight.
This is the kind of Monday no investor wants. Geopolitical shock, surging oil, relentless foreign selling, and a top bank’s earnings miss all landing at the same time.
Indian Markets Open Deep in Red on Monday
GIFT Nifty futures had already set the alarm bells ringing early morning. The futures contract dropped 167 points to 24,067, pointing to a heavy gap-down opening for Indian benchmarks.
The BSE Sensex started Monday’s session at 76,638, shedding 690 points (0.89%) in the pre-opening itself. The NSE Nifty50 opened with a loss of 206 points at 23,970.
By 10:00 AM, losses had widened to a full-blown selloff. The Sensex was trading 1,047 points (1.35%) lower at 76,280. The Nifty50 slid 301 points (1.25%) to 23,874, well below the psychologically important 24,000 mark.
The broader markets bled too. The Nifty MidCap index fell 1.15% and Nifty SmallCap declined 1.40%. The pain was widespread, not selective.
This followed an already painful Friday session. On May 8, the Sensex had shed 516 points to close at 77,328. The Nifty50 had dropped 150 points to close at 24,176, marking the second straight session of losses. Monday made it three.
Titan Company, InterGlobe Aviation, and State Bank of India were the top Nifty50 losers. Swiggy shares also slipped 7% after quarterly results disappointed.
| Indicator | Level | Change |
|---|---|---|
| BSE Sensex (10 AM) | 76,280 | Down 1,047 pts (1.35%) |
| NSE Nifty50 (10 AM) | 23,874 | Down 301 pts (1.25%) |
| Nifty MidCap | Trading lower | Down 1.15% |
| Nifty SmallCap | Trading lower | Down 1.40% |
| GIFT Nifty (Pre-market) | 24,067 | Down 167 pts (0.69%) |
Trump Kills Iran Talks, Crude Oil Surges Past $105
Sunday changed everything. After Iranian officials submitted a counter-proposal to end the 10-week conflict through Pakistani mediators, Trump posted on Truth Social: “I have just read the response… TOTALLY UNACCEPTABLE!”
Tehran had reportedly offered to relocate enriched uranium to a third country. But it flatly refused to dismantle its nuclear facilities, a non-negotiable red line for Washington.
The energy markets responded with fury. Brent crude futures surged 4.11% to $105.45 a barrel on Monday morning. WTI jumped 4.59% to $99.80, once again threatening the $100 mark.
The Strait of Hormuz, which carries roughly 20% of the world’s traded oil, remained largely blocked. Iran continued drone attacks on Gulf neighbors over the weekend. The UAE intercepted two Iranian drones, Qatar condemned a strike on a cargo ship in its waters, and Kuwait reported hostile drones entering its airspace.
For India, a major crude oil importer, the timing could not be worse. Rising oil pushes up the trade deficit, fans domestic inflation, and hammers the Indian rupee. The dollar index strengthened to 98.001 on Monday, adding more pressure on the currency.
In a striking domestic signal, Prime Minister Modi on Sunday urged citizens to work from home to reduce fuel consumption and advised postponing gold purchases for a year, signaling official anxiety about energy costs and the current account.
Citi analysts have warned that oil price risks remain skewed to the upside. They expect Brent to stay above $90 a barrel through 2026 as long as Hormuz transit remains disrupted.
FII Selloff in 2026 Now Crosses Rs 2 Lakh Crore
The foreign investor exit from India in 2026 has been historic in scale. On Friday alone, FIIs net sold Indian equities worth Rs 4,110.60 crore, as per NSE data.
The cumulative FII outflow in 2026 has now crossed Rs 2.06 lakh crore, already surpassing the total FII selling for the entire year of 2025, which stood at Rs 1.66 lakh crore.
Here is how the FII selling has piled up so far this year:
- January 2026: Net selling of Rs 41,435 crore
- February 2026: Brief relief as FIIs turned net buyers, purchasing Rs 22,615 crore
- March 2026: Heaviest outflow month at Rs 1,17,775 crore
- April 2026: Rs 60,847 crore sold
- May 2026 (so far): Rs 14,275 crore sold
The saving grace has been steady domestic buying. On Friday, DIIs stepped up to buy Rs 6,748.13 crore worth of equities. In total, domestic institutional investors have infused over Rs 3 lakh crore into the market in the first four months of 2026.
Monthly SIP inflows averaging around Rs 32,000 crore continue to feed domestic liquidity. Without this consistent domestic support, the market would have fallen far deeper.
Wall Street Hit Records, But Sunday Ruined the Party
Ironically, Wall Street delivered a strong finish to the trading week on Friday. The S&P 500 climbed 0.84% to close at a record 7,398.93. The Nasdaq surged 1.71% to a record 26,247. Both indices completed their sixth straight winning week, their longest winning streak since 2024.
A better-than-expected US jobs report fuelled the optimism. Nonfarm payrolls rose by 115,000 in April, beating forecasts, while the unemployment rate held steady at 4.3%.
AI stocks piled on the momentum. Nvidia, Sandisk, and other tech names surged, sending the Nasdaq to a fresh all-time high. The Dow Jones added a modest 12.19 points to 49,609.
But Sunday’s developments flipped sentiment overnight. US stock futures fell after Trump’s rejection, with Dow futures dropping 168 points and S&P 500 futures slipping. Asian markets opened weaker, with Japan’s Nikkei and Hong Kong’s Hang Seng shedding up to half a percent in early Monday trade. Only South Korea’s KOSPI bucked the trend.
SBI Q4 Miss Added to Friday’s Selloff Pain
State Bank of India’s March quarter results added another blow to Friday’s session. The bank posted a net profit of Rs 19,684 crore for Q4FY26, up 5.58% year-on-year. But the headline masked some uncomfortable details.
SBI’s net interest income came in at Rs 44,380 crore, rising just 4.1% year-on-year. Analysts had pencilled in 6% to 10% growth. Operating profit fell 11.45% year-on-year and 15.7% sequentially. Total income also slid to Rs 1,40,412 crore from Rs 1,43,876 crore a year ago.
Investors voted with their feet. SBI shares crashed over 7% on Friday, hitting a low of Rs 1,010 on the NSE from a previous close of Rs 1,092.
The full-year story was much better. SBI crossed the Rs 80,000 crore net profit mark for the first time in its history, reporting FY26 profit of Rs 80,032 crore, up 12.88% year-on-year. Asset quality improved too, with gross NPA falling to 1.49% from 1.82% a year ago.
The bank also declared a dividend of Rs 17.35 per equity share for FY26, with a record date of May 16. But in a risk-off session, even good news struggles to matter.
The Nifty50’s 24,000 support zone will be the most watched number this week. Ajit Mishra of Religare Broking advised investors to stay selective, focus on fundamentally strong large-cap stocks with clear earnings visibility, and avoid excessive leverage given the elevated geopolitical sensitivity and currency volatility. As the Iran crisis deepens with no diplomatic resolution in sight, the Indian market finds itself caught between resilient domestic buying and relentless global headwinds. The Nifty has already shed nearly 10% from its January 2026 high of 26,373. How much longer domestic money can hold the line is the only question that matters right now. Whether you are a long-term investor watching your portfolio shrink or a trader navigating these brutal swings, this week demands caution above everything else. What is your outlook on Nifty50 from here? Will domestic buying defend 24,000? Drop your views in the comments below.
