Indian shares extend fall, rupee at record low as Mideast deal optimism fades

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May 12, 2026, 11:51 GMT+7
By Bharath Rajeswaran
Reuters - Indian shares extended losses and the rupee slid to a record low on Tuesday, weighed down by elevated crude prices, as fragile negotiations to end the Iran war fuelled concerns over global supply and economic fallout.
The Nifty 50was down 0.69% at 23,652.4, as of 10:15 a.m. IST, while the BSE Sensexshed 0.82% to 75,386.61. Both benchmarks slumped about 1.5% and 1.7%, respectively, on Monday.
Sentiment was also hit after Prime Minister Narendra Modi over the weekend urged fuel conservation and restraint on gold purchases to help preserve foreign exchange reserves, with jewellers, oil firms and travel stocks down for a second session.
The rupee slipped to a record low , pressured by concerns over India's import bill as crude prices hovered near $105 a barrel and foreign outflows continued.
Asian market fell 0.7% on Tuesday after U.S. President Donald Trump said the ceasefire with Iran was "on life support" and dismissed Tehran's response to a U.S. peace proposal as "stupid", raising fears of a prolonged conflict.
Higher crude prices are a key risk for India, the world's third-largest oil importer, as they can stoke inflation, pressure the currency and weigh on growth and corporate earnings.
Investors awaited India's April retail inflation data, due later in the day, for clues on how far higher fuel costs have fed into domestic prices.
A Reuters poll showed annual inflation likely edged closer to the Reserve Bank of India's 4% target in April from 3.4% in March.
Eleven of the 16 major sectors logged losses. The broader small-capsand mid-capsdropped 1.1% and 0.7%, respectively.
"Lack of breakthrough in U.S.-Iran peace talks, weakness in rupee along with continued foreign selling pressure have weighed on market sentiment, with broad-based selling pressure across sectors," Bajaj Broking Research said.
Financialslost 1%, while ITsub-index tumbled 3.3% ahead of U.S. inflation data, with TCS, Infosys, HCLT echand Wiprodown between 2.5% and 4%.
In contrast, ONGC and Oil Indiaclimbed 6% and 6.6%, respectively, after brokerage CLSA termed the government's royalty cuts on crude oil and gas production as a significant positive for the two companies.

Sumber : Reuters