Indian Markets Bleed ₹11 Lakh Crore In 4 Days Amid Oil Shock, FII Selloff
New Delhi, May 12: Indian stock markets continued their sharp decline as investors lost nearly ₹11 lakh crore in wealth over the last four trading sessions. Benchmark indices Sensex and Nifty slipped further amid rising crude oil prices, a weakening rupee, and growing concerns over escalating tensions between the US and Iran.
While markets in the US and several Asian countries have rallied on optimism surrounding artificial intelligence and semiconductor stocks, Indian equities have struggled under pressure from foreign investor selling and fears of imported inflation.
The Sensex has fallen nearly 2,500 points over the last five sessions, while the Nifty dropped below the 23,500 mark. Analysts say India’s heavy dependence on imported crude oil has made domestic markets more vulnerable during the current geopolitical crisis in West Asia.
Experts believe the spike in oil prices could widen India’s current account deficit and increase inflationary pressure across sectors dependent on fuel and raw materials. The falling rupee has also added to investor concerns, reducing returns for foreign institutional investors and triggering sustained outflows from Indian equities.
Unlike markets such as the US, Japan, South Korea, and Taiwan — which are benefiting from the global AI and semiconductor boom — India lacks major exposure to those sectors, limiting support for domestic equities during the current uncertainty.
Market analysts also pointed out that Indian stocks were already trading at premium valuations before the recent geopolitical tensions intensified. As a result, investors are now reassessing growth expectations amid rising global risks.
Despite the ongoing correction, experts maintain that India’s long-term economic fundamentals remain intact. They believe markets could recover if geopolitical tensions ease and crude oil prices stabilise in the coming weeks.
