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Markets extend losses in late trade amid West Asia tensions
May-12-2026

Indian equity markets extended their losses in late afternoon session amid heightened tensions in the West Asia after US President Donald Trump rejected Iran’s counter offer and said that fragile ceasefire was on ‘life support’. Besides, Iran has warned that it could consider 90% uranium enrichment if it faces another attack from the US and Israel. The tensions have pushed up the Brent crude oil prices near $107 a barrel. Moreover, a cut in India’s GDP forecast by Moody's Ratings kept investors on edge. Moody's Ratings, in its Global Macro Outlook May update, has cut India’s Gross Domestic Product (GDP) growth forecast for 2026 by 0.8 percentage points to 6%, following growth of 7.5% in 2025. The downgrade reflects subdued private consumption, weaker capital formation, and slowing industrial activity amid rising energy costs. Further, traders were waiting for release of India’s consumer price inflation data for April 2026.

On the global front, Asian equity markets were trading mixed as a recent tech-led rally lost steam and oil prices extended their surge. European equity markets were trading lower as German inflation increased for the second consecutive month as a result of another rise in energy prices due to the West Asia war.

Back home, IT sector stocks came under pressure as OpenAI announced launch of OpenAI Deployment Company, aimed at helping organisations deploy AI systems across critical business operations. Markets participants worry that the move may affect Indian IT services companies in upcoming time. 

The BSE Sensex is currently trading at 74820.46, down by 1194.82 points or 1.57% after trading in a range of 74727.30 and 75741.96. There were 4 stocks advancing against 26 stocks declining on the index.

The alone gaining sectoral index on the BSE was Oil & Gas up by 0.47%, while Realty down by 3.82%, IT down by 3.55%, Consumer Durables down by 2.91%, Industrials down by 2.48% and Capital Goods down by 2.39% were the top losing indices on BSE.

The few gainers on the Sensex were NTPC up by 0.69%, SBI up by 0.37%, Bharti Airtel up by 0.22% and Tata Steel up by 0.17%. On the flip side, Tech Mahindra down by 4.12%, TCS down by 3.94%, Adani Ports & SEZ down by 3.84%, HCL Technologies down by 3.82% and Infosys down by 3.13% were the top losers.

Meanwhile, in increasing efforts towards rural development in the country, the Government of India is all set to implement the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin)(VB-G RAM G) Act, 2025, nationwide from July 1, 2026, replacing the two-decade-old the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. This move ushers in a new era of integrated, future-ready and productivity-oriented rural transformation aligned with the national vision of Viksit Bharat @2047.

Under the new legislation, every rural household whose adult members volunteer to undertake unskilled manual work shall be entitled to a statutory guarantee of 125 days of wage employment in every financial year. The enhanced guarantee is intended to strengthen livelihood security, improve rural incomes and support sustainable village-level development.

The new Act places strong emphasis on timely and transparent wage payments. Wages shall continue to be transferred directly into workers’ bank or post office accounts through Direct Benefit Transfer (DBT). Wages are to be paid on a weekly basis or within fifteen days from the closure of the muster roll, failing which workers shall be entitled to delay compensation in accordance with the provisions of the Act.

The CNX Nifty is currently trading at 23463.60, down by 352.25 points or 1.48% after trading in a range of 23434.45 and 23757.55. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were ONGC up by 5.55%, Hindalco up by 1.80%, NTPC up by 0.67%, SBI up by 0.30% and Tata Steel up by 0.14%. On the flip side, Tech Mahindra down by 4.19%, TCS down by 3.99%, Shriram Finance down by 3.92%, Adani Ports & SEZ down by 3.89% and HCL Technologies down by 3.83% were the top losers.

Asian equity markets were trading mixed; Nikkei 225 surged 265.12 points or 0.42% to 62,683.00, Taiwan Weighted added 108.26 points or 0.26% to 41,898.32 and Straits Times rose 0.61 points or 0.01% to 4,943.38, while Hang Seng declined 53.84 points or 0.2% to 26,353.00, KOSPI dropped 179.09 points or 2.34% to 7,643.15, Shanghai Composite weakened 10.53 points or 0.25% to 4,214.49 and Jakarta Composite plunged 52.95 points or 0.77% to 6,852.67.

European equity markets were trading lower; UK’s FTSE 100 decreased 59.12 points or 0.58% to 10,210.31, France’s CAC fell 54.28 points or 0.67% to 8,002.10 and Germany’s DAX lost 273.78 points or 1.12% to 24,076.50.
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