Markets tumble after PM Modi urges restraint on fuel and gold

Nifty closes near day's low around 23,800 as oil prices continue to spike higher

May 11, 2026

Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.

In our latest episode of In The Money by Zerodha, From the macro forces that shape markets over long periods — interest rates, institutional flows, currency, and commodities — to the structural and regulatory shifts like taxation changes, leverage rules, and derivatives evolution, and finally to what you can observe directly in price, volatility, and market breadth, most market changes fit into one of three broad pillars.

This episode breaks down all three lenses of market regimes and explains why identifying them in real time is far harder than in hindsight — and why that distinction matters deeply for how we trade.

Check out In The Money

Markets Today

Nifty opened with a big gap down of 206 points at 23,970, following PM Modi’s appeal to reduce fuel consumption, gold purchases, and foreign travel amid failed US–Iran talks that triggered another spike in crude oil prices.

The index remained volatile in the opening hour, briefly slipping toward the 23,850 mark before stabilising.

After the weak start, Nifty gradually recovered through the late morning session, climbing steadily toward the 23,930–23,950 zone by noon. The index then traded largely range-bound in the 23,920–23,950 range through the early part of the second half.

Momentum improved further after 1:30 PM, with Nifty inching closer to the 24,000 mark and briefly testing the 23,980–24,000 zone around 2 PM. However, the move failed to sustain as selling pressure returned sharply in the latter half of the session.

In the final hour, weakness intensified, dragging the index below 23,850 and toward the day’s low near the 23,800–23,820 zone. Nifty eventually closed at 23,815.85, marking a weak session dominated by sharp late selling after a relatively stable recovery attempt through the day.

Nifty fell 360 points to 23,815, while Sensex dropped 1.7% and Bank Nifty lost 1.6%. Market breadth was extremely weak, with just 117 advances against 383 declines — the worst in 18 sessions. VIX jumped 10% to 18.55, signalling rising nervousness in the market.

Sectoral Indices Performance

Only Pharma (+0.25%) and FMCG (+0.08%) stayed green. Realty cracked 3.1%, PSU Banks fell 2.5%, Media lost 2.5%. Metal, Oil & Gas, and Auto all bled over 1%.

Winners & Losers

Midcap fell 1.1%, outperforming the large-cap carnage. But breadth was grim everywhere; declines outnumbered advances by more than three to one.

Momentum Screener

Global Markets

Commodities

Crude’s surge is the story. After crashing 9.4% on Tuesday, it reversed hard today, adding pressure on India’s import bill.

Bond Yields & Currency

India 10Y yield at 7.03%, US 10Y at 4.38%. USD/INR jumped 0.8% to 95.34. The rupee is weakening fast, and that matters for FII flows and crude.

FII / DII Flows

Here’s the trend of FII-DII activity from the last 5 days:

Thematic Indices

Tijori’s niche indices, where pockets of the market beyond standard sector baskets are sorted by today’s move. You can also track the Promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard

Change in OI for the day

The following is the change in OI for Nifty contracts expiring on 12th May:

The maximum Call Open Interest (OI) is observed at 24,000, followed by 24,200, indicating potential resistance at the 24,000 -24,100 levels.
The maximum Put Open Interest (OI) is observed at 23,500, followed by 23,800, suggesting support at 23,700-23,600.

Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.

Source: Sensibull