Indian equity markets extended their losing streak for the fourth straight session on Tuesday, with benchmark indices plunging sharply amid weak sentiment triggered by Prime Minister Narendra Modi’s austerity appeal, elevated crude oil prices, foreign fund outflows and uncertainty surrounding the US-Iran conflict.
The Sensex ended 1,456 points, or 1.92 percent, lower at 74,559.24 after touching an intraday low of 74,449. The NSE Nifty 50 closed at 23,379.55, down 436 points, or 1.83 percent.
Broader markets witnessed steeper losses. The Nifty Midcap 150 index tumbled 2.53 percent, while the Nifty Smallcap 250 index fell 3 percent.
Over the past four trading sessions, the Sensex has plunged nearly 3,400 points, or 4.4 percent, while the Nifty has declined about 4 percent.
Investor wealth eroded sharply as the market capitalisation of BSE-listed companies dropped by more than ₹11 lakh-crore in a single session.
The total market capitalisation of listed firms stood at ₹456 lakh-crore on Tuesday, down from ₹467.3 lakh-crore on Monday. Since May 6, investors have lost nearly ₹17 lakh-crore in market value.
Market experts said Prime Minister Narendra Modi’s call for economic restraint has dampened investor sentiment, particularly in consumption-driven sectors.
The Prime Minister had urged citizens to minimise spending on fuel such as petrol, diesel and gas, while also appealing to people to avoid purchasing gold for one year.
The remarks triggered selling pressure in sectors linked to discretionary spending, including jewellery, hospitality and travel.
VK Vijayakumar of Geojit Investments said sectors expected to be impacted by lower consumption witnessed heavy selling. According to him, these sectors could recover if crude oil prices decline sharply and austerity concerns ease.
The unresolved US-Iran conflict continues to keep global markets on edge despite ceasefire discussions and diplomatic efforts.
Concerns over possible disruptions in oil supplies have kept crude prices elevated, raising fears of inflationary pressures globally.
Recent remarks by US President Donald Trump, suggesting the ceasefire remained fragile, further unsettled investors.
Brent crude has remained above the $100 per barrel mark for more than two months, hurting sentiment in oil-importing economies such as India.
Analysts warned that persistently high crude prices could weaken India’s fiscal position, increase inflationary pressures, hurt economic growth and put further pressure on the rupee.
The Indian rupee weakened to a record low of 95.63 against the US dollar on Tuesday.
The domestic currency has fallen more than 6 percent this year, intensifying concerns over foreign capital outflows and imported inflation.
Foreign portfolio investors (FPIs) have continued their sustained selling in Indian equities. Since July last year, FPIs have pulled out nearly ₹4.5 lakh-crore from the cash market. In May alone, they have sold equities worth around ₹19,500 crore.
The rise in US bond yields and a stronger dollar have also weighed heavily on emerging markets. The US 10-year bond yield has climbed to 4.42 percent from 4.15 percent at the end of December 2025, making US assets more attractive relative to emerging market equities.
Rupak De of LKP Securities said the Nifty has broken below its recent consolidation range, signalling growing weakness. He said the index could decline towards the 23,200–23,150 zone in the near term, while resistance is placed around 23,600.
Sudeep Shah of SBI Securities said the 23,530–23,550 range would act as a crucial resistance zone. According to Shah, as long as the Nifty trades below 23,550, the bearish trend may continue, with downside targets of 23,200 and 23,050 possible in the short term.
(By arrangement with livemint.com)