Market slides for third session; Sensex tumbles 1,313 pts amid Iran tensions, oil spike

The headline equity indices tumbled sharply on Monday, extending losses for a third consecutive session. Investor sentiment weakened after U.S. President Donald Trump rejected Iran's response to a U.S. peace proposal, fuelling fears of a prolonged and destabilising conflict in the Persian Gulf. Brent crude surged above $100 a barrel, while the rupee slid close to the 95-per-dollar level. Domestic sentiment also remained under pressure after Prime Minister Narendra Modi urged citizens to conserve fuel and curb non-essential imports such as gold. The Nifty slipped below the 23,850 mark, dragged down by steep losses in consumer durables and PSU bank stocks. However, healthcare and pharma shares bucked the broader selloff and attracted buying interest.

The S&P BSE Sensex, tanked 1,312.91 points or 1.70% to 76,015.28. The Nifty 50 index fell 360.30 points or 1.49% to 23,815.85. In three consecutive trading sessions, the Sensex tanked 2.5%, while the Nifty 50 fell 2.1%.

Bharti Airtel (down 4.18%), Reliance Industries (down 3.31%) and HDFC Bank (down 2.13%) were major index drags today.

In the broader market, the BSE 150 MidCap Index slipped 1.26% and the BSE 250 SmallCap Index declined 0.96%.

The market breadth was weak. On the BSE, 1,358 shares rose and 3,000 shares fell. A total of 192 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 10.16% to 18.55.

PM Modi Urges Austerity Amid Energy Crisis:

Amid elevated crude oil prices and the ongoing U.S.-Iran conflict, Prime Minister Narendra Modi urged citizens to adopt austerity measures, including reducing petrol and diesel consumption, avoiding non-essential gold purchases and foreign travel, and promoting the use of locally manufactured products. He also advocated greater use of public transport, EVs, work-from-home practices, and domestic tourism to conserve foreign exchange reserves and strengthen India's economic resilience.

The Prime Minister also called for reduced edible oil consumption and lower dependence on chemical fertilizers, while encouraging natural farming and wider adoption of solar-powered irrigation systems. Stressing the importance of the 'Vocal for Local' initiative, Modi said increasing the use of indigenous products was essential to reduce import dependence and safeguard national interests amid global economic disruptions.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 0.70% to 7.033 compared with the previous session close of 6.984.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 95.3100 compared with its close of 94.4900 during the previous trading session.

MCX Gold futures for the 5 June 2026 settlement shed 0.36% to Rs 151,975.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.10% to 97.88.

The United States 10-year bond yield added 0.57% to 4.389.

In the commodities market, Brent crude for July 2026 settlement jumped $2.25 or 2.22% to $103.54 a barrel.

Global Markets:

European stocks traded mixed on Monday as investors assessed the latest developments in the stalled peace negotiations between the U.S. and Iran.

Asian indices ended mixed as rising crude oil prices and escalating geopolitical tensions between the U.S. and Iran weighed on investor sentiment.

China's annual inflation rose to 1.2% in April 2026 from 1% in March, exceeding market expectations of 0.8%. The increase was driven by higher transport, healthcare and education costs amid elevated energy prices and supply chain disruptions linked to the Middle East conflict. Food prices declined 1.6%, pressured by weaker pork, vegetable and fruit prices. On a monthly basis, China's consumer price index rose 0.3% in April after falling 0.7% in March.

Investor concerns intensified after U.S. President Donald Trump rejected Tehran's latest proposal aimed at ending the conflict.

Iran submitted a fresh proposal to U.S. negotiators seeking an end to hostilities and the removal of sanctions, according to Iran's semi-official media agency, which cited an informed source.

Trump, however, criticised Iran's response and described it as 'totally unacceptable' in a social media post.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu reportedly said on Sunday that the conflict with Iran was 'not over,' adding that the U.S. and Israel remained committed to curbing Tehran's nuclear ambitions.

Netanyahu's comments came ahead of Trump's planned visit to China later this week, where he is expected to meet Chinese President Xi Jinping.

The conflict and Iran's closure of the Strait of Hormuz have pushed global energy prices higher and increased fuel costs in several economies, including the United States.

On Wall Street, U.S. equities ended higher on Friday after stronger-than-expected April jobs data and optimism around diplomatic developments in the Middle East.

The S&P 500 rose 0.84% to close at 7,398.93, while the Nasdaq Composite climbed 1.71% to 26,247.08. Both indices touched fresh intraday record highs and ended at record closing levels. The Dow Jones Industrial Average added 12.19 points, or 0.02%, to settle at 49,609.16.

Market sentiment was supported after the Bureau of Labor Statistics reported that nonfarm payrolls increased by 115,000 in April, above expectations of 55,000. The U.S. unemployment rate remained steady at 4.3%.

Stocks in Spotlight:

Jewellery stocks fell sharply on Monday after Prime Minister Narendra Modi urged citizens to avoid buying gold for the next one year. The appeal was part of a broader push to conserve fuel and foreign exchange reserves.

The remarks weighed on sentiment across the sector. Kalyan Jewellers India fell 9.23%. Senco Gold dropped 8.61%. Titan Company slipped 6.83%. Sky Gold and Diamonds declined 6.63%. Thangamayil Jewellery lost 5.69%. PC Jeweller was down 4.94%.

Airline stocks tumbled on Monday after Prime Minister Narendra Modi urged citizens to postpone non-essential foreign travel amid rising global tensions and pressure on foreign exchange reserves. InterGlobe Aviation, the parent company of IndiGo, fell 4.94%. SpiceJet declined 4.72%.

Multi Commodity Exchange of India (MCX) added 2.92% after it reported a 291% year-on-year (YoY) surge in consolidated net profit to Rs 530 crore in Q4 FY26, compared with Rs 135 crore in Q4 FY25. Revenue from operations jumped 205% YoY to Rs 889 crore for the quarter ended 31 March 2026.

Tata Consumer Products surged 8.32% after the company reported a 21.53% jump in consolidated net profit to Rs 419.08 crore on a 17.91% increase in revenue from operations to Rs 5,433.62 crore in Q4 March 2026 over Q4 March 2025.

Birla Corporation surged 7.15% after the company reported strong Q4 FY26 results. Consolidated profit after tax stood at Rs 294.78 crore in Q4 FY26, up 14.87% from Rs 256.61 crore in Q4 FY25. Revenue from operations increased 0.75% YoY to Rs 2,836.12 crore in Q4 FY26 from Rs 2,814.91 crore in the corresponding quarter last year.

Grindwell Norton surged 6.61% after the company reported healthy earnings growth for the quarter ended 31 March 2026. Consolidated profit after tax stood at Rs 118.74 crore in Q4 FY26, up 28.31% from Rs 92.54 crore in Q4 FY25. Revenue from operations increased 18.82% YoY to Rs 838.77 crore in Q4 FY26 from Rs 705.90 crore in the corresponding quarter last year.

Canara Bank declined 3.72% after its standalone net profit declined 9.93% to Rs 5,002.66 crore on a 1.84% decrease in total income to Rs 36,662.21 crore in Q4 FY26 over Q4 FY25.

Utkarsh Small Finance Bank tanked 8.38% after it reported a standalone net loss of Rs 188.01 crore in Q4 FY26, compared with a net profit of Rs 2.96 crore posted in Q4 FY25. Total income tanked 18.39% YoY to Rs 952.07 crore in the quarter ended 31 March 2026.

Blue Dart Express dropped 7.40% after the company's consolidated net profit fell 11.42% to Rs 48.85 crore in Q4 FY26 as against Rs 55.15 crore in Q4 FY25. However, revenue from operations rose 8.19% YoY to Rs 1,533.47 crore in the quarter ended 31 March 2026.

Aarti Surfactants dropped 10.82% after the company's consolidated net profit tumbled 56.89% to Rs 4.19 crore in Q4 FY26 from Rs 9.72 crore in Q4 FY25. Revenue from operations jumped 26.83% YoY to Rs 256.28 crore in the quarter ended 31 March 2026.

Grindwell Norton surged 6.61% after the company's consolidated profit after tax stood at Rs 118.74 crore in Q4 FY26, up 28.31% from Rs 92.54 crore in Q4 FY25 and rose 24.77% from Rs 95.17 crore in Q3 FY26. Revenue from operations increased 18.82% YoY to Rs 838.77 crore in Q4 FY26 from Rs 705.90 crore in the corresponding quarter last year. Revenue rose 11.86% sequentially from Rs 749.83 crore in Q3 FY26.

Balkrishna Industries declined 2.97% after the company's standalone net profit fell 18.5% to Rs 295.09 crore despite a 7.08% increase in revenue from operations to Rs 2,941.15 crore in Q4 FY26 over Q4 FY25.

Northern Arc Capital jumped 8.20% after the company's consolidated net profit surged 250.9% to Rs 132.50 crore on a 23.09% increase in revenue from operations to Rs 741.65 crore in Q4 FY26 over Q4 FY25.

Bank of India added 2.97% after the bank reported a 14.85% increase in standalone net profit to Rs 3,015.79 crore on a 4.3% increase in total income to Rs 22,685.38 crore in Q4 FY26 over Q4 FY25.

Windsor Machines fell 4.76%. The company reported a consolidated net profit of Rs 7.24 crore in Q4 FY26 as against a net loss of Rs 4.14 crore recorded in Q4 FY25. Net sales for the period under review were Rs 184.64 crore, up 52.8% YoY.

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