SENSEX crashes 1,456 points, NIFTY50 ends below 23,400 after rupee hits record low, crude trades above $107

The Indian equity benchmarks nosedived and fell for a fourth straight session on Tuesday, May 12, as investors' sentiment soured after crude oil prices jumped and rupee hit a record low of 95.63 against the US dollar. The SENSEX fell as much as 1,566 points and NIFTY50 index touched an intraday low of 23,348 on the back of a broad-based selloff.

The SENSEX dropped 1,456 points to close at 74,559 and NIFTY50 index tumbled 436 points to 23,379.55.

Crude oil shock

Investors' sentiment took a knock after Brent Crude moved above $107 per barrel after concerns loomed over around a ‘weak’ ceasefire deal between the United States and Iran.

The latest media report suggests that US President Donald Trump, after rejecting Iran’s response to the US proposal for a peace deal, said that the ceasefire deal between the two nations at war is looking weak.

Rupee at record low against US dollar

The Indian rupee dropped to a fresh record low of 95.63 against the US dollar amid the higher demand for the greenback in the market and elevated oil prices.

Persistent selling by foreign institutional investors (FIIs) also added to investors pain. FIIs have so far this year sold shares worth ₹2,15,404 crore.

IT shares in freefall

Selling pressure was broad-based as all major sector gauges compiled by the National Stock Exchange (NSE) ended lower led by the NIFTY IT index's 3.73%. IT shares came under selling pressure with stocks like Infosys, HCL Technologies and Tata Consultancy Services (TCS) hitting new 52-week lows after OpenAI announced the launch of a new company, OpenAI Deployment Company, which will help organisations to build and deploy AI systems for everyday work.

NIFTY Bank, Auto, FMCG, Financial Services, Pharma, PSU Bank, Private Bank, Realty and Healthcare indices also dropped between 1.35% and 4.1%.

Broader markets also faced the heat of selling pressure as NIFTY Midcap 100 index declined 2.54% and NIFTY Smallcap 100 index fell 3.17%.

NIFTY50 top losers and gainers

Adani Ports was top loser in the NIFTY50 index, the stock fell 4.32% to close at ₹1,691. Shriram Finance, Tech Mahindra, HCL Technologies, Jio Financial Services, Adani Enterprises, TCS and Titan also fell between 3.5% and 4.3%.

On the other hand, ONGC, Hindalco, State Bank of India and Bharti Airtel were among the notable gainers in the NIFTY50 index.