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Weak trade persists in late afternoon session
May-11-2026

Benchmarks continued to trade lower in late afternoon session amid heightened tensions in West Asia after US President Donald Trump rejected the counter proposal made by the Iran to end the war. The tensions have spiked up the global energy prices with Brent crude surging above the $100 a barrel mark. Further, investors took cautious approach after Prime Minister Narendra Modi's message to prioritise work from home, avoid international travel for a year, and not purchase gold during this period as well. 

On the global front, Asian equity markets were trading mostly in green as strong gains in AI-related stocks in Seoul offset investors’ concerns over escalating Iran-US tensions. However, European equity markets were trading mostly in red amid failed peace efforts in the US-Iran conflict.

The BSE Sensex is currently trading at 76381.89, down by 946.30 points or 1.22% after trading in a range of 76165.57 and 76678.52. There were 10 stocks advancing against 20 stocks declining on the index.

The few gaining sectoral indices on the BSE were Healthcare up by 0.97%, Telecom up by 0.28%, IT up by 0.26% and FMCG up by 0.19%, while Consumer Durables down by 3.18%, Realty down by 2.16%, Capital Goods down by 1.71%, Consumer Discretionary down by 1.61% and PSU down by 1.60% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharmaceutical Industries up by 1.53%, Adani Ports & SEZ up by 0.96%, Hindustan Unilever up by 0.96%, Kotak Mahindra Bank up by 0.87% and Axis Bank up by 0.69%. On the flip side, Titan Company down by 5.95%, Interglobe Aviation down by 4.52%, SBI down by 3.91%, Bharti Airtel down by 3.82% and Eternal down by 3.65% were the top losers.

Meanwhile, BMI, a Fitch Group firm, has forecasted that India’s economic growth to slow to 6.7% in the current fiscal (FY27), from 7.7% growth in FY26 on account of waning momentum and oil price shock from Iran war, though tax reforms offer partial offset. It also said that the prospect of the Iran-US conflict escalating in scope presents downside risk to its growth outlook and India must balance spending needs on defence and fuel price stabilisation against fiscal consolidation agenda. It said the tax reforms in GST and income tax carried out in 2025 will partly offset effects of cost-push inflation, and added that looser monetary policy will support capital spending, as increased uncertainty amid the war and higher input prices hurt investment.

The agency estimates that India's economy grew 8% y-o-y in the January-March quarter of 2026, faster than its original 7.8% projection. It has revised its growth forecast for 2025-26 upwards by 0.1 percentage points to 7.7%. though, it maintained its forecast of 6.7% GDP growth during FY27 due to their belief that the effects of last year's tax reforms will fade as input costs increase in the new fiscal year. It said one factor behind the unchanged FY27 forecast is its assessment that the effects of last year's tax reforms will dissipate by April-June quarter of 2026.

It said such waning is already apparent in the vehicle registrations data, showing new registrations grew 9% y-o-y in April after rising 23% in January-March. Likewise, while electricity generation grew 2.7% y-o-y last quarter, the growth was driven by power demand in January-February. During March, electricity consumption rose by a mere 0.9% y-o-y. It also anticipates restricted supply of energy and food in FY27 to slow consumption growth while raising price inflation. It said that conflict in Iran has already curtailed supplies and that has already been factored in the 6.7% growth estimate for FY27. However, India's weather department is also predicting 'below normal' rainfall during this year's monsoon (June-September) due to El Nino. 

BMI said its models indicate that GDP growth will fall by up to 0.4-0.7percentage points if the price of Brent Crude rises to around $90/bbl. The size of this impact makes India's economy amongst the most sensitive to changes in energy prices within Asia. Crude prices have jumped to $105/barrel after the United States rejected Iran's peace proposal, rekindling fears that the blockade of the Strait of Hormuz will continue for a longer time. The prices have jumped from about $73/ barrel level prevailing before the war started on February 28. Crude prices touched a 4-year high of $126/barrel on April 30.

The CNX Nifty is currently trading at 23926.10, down by 250.05 points or 1.03% after trading in a range of 23845.30 and 23997.45. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Tata Consumer Products up by 7.53%, Max Healthcare Institute up by 2.39%, Coal India up by 1.88%, Sun Pharmaceutical Industries up by 1.35% and Grasim Industries up by 0.92%. On the flip side, Titan Company down by 6.00%, Interglobe Aviation down by 4.65%, SBI down by 3.97%, Eternal down by 3.81% and Bharti Airtel down by 3.77% were the top losers.

Asian equity markets were trading mostly in green; Taiwan Weighted added 186.12 points or 0.45% to 41,790.06, Hang Seng advanced 16.29 points or 0.06% to 26,410.00, KOSPI increased 324.24 points or 4.15% to 7,822.24, Straits Times rose 16.84 points or 0.34% to 4,938.74 and Shanghai Composite strengthened 45.07 points or 1.07% to 4,225.02, while Nikkei 225 slipped 234.65 points or 0.38% to 62,479.00 and Jakarta Composite plunged 63.74 points or 0.92% to 6,905.66.

European equity markets were trading mostly in red; France’s CAC fell 77.17 points or 0.95% to 8,035.40 and Germany’s DAX lost 114.43 points or 0.47% to 24,224.20, while UK’s FTSE 100 increased 15.43 points or 0.15% to 10,248.50.
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