Sensex Dives Over 924 Points; Real Estate Sector Takes a Hit

The key equity benchmarks in India continued to trade with significant losses in mid-morning trade, driven by heightened concerns over a potential prolonged conflict in the Persian Gulf. U.S. President Donald Trump’s rejection of Iran’s response to a U.S. peace proposal added to the market’s anxiety. Domestically, sentiment was further dampened after Prime Minister Narendra Modi urged citizens to adopt austerity measures, including conserving fuel and reducing non-essential imports, such as gold, in response to rising energy prices. The Nifty index traded below the 23,950 level.

At 11:30 IST, the S&P BSE Sensex dropped 924.47 points or 1.20% to 76,399.71. The Nifty 50 index fell 253.30 points or 1.05% to 23,922.85. The broader market also experienced a downturn, with the BSE 150 MidCap Index slipping 1.26% and the BSE 250 SmallCap Index declining 1.06%.

The market breadth was decidedly negative, with 1,371 shares rising and 2,672 shares falling on the BSE. A total of 223 shares were unchanged.

Modi Urges Austerity Amid Energy Crisis

Amid elevated crude oil prices and the ongoing U.S.-Iran conflict, Prime Minister Narendra Modi called for austerity measures to conserve resources and strengthen India’s economic resilience. He urged citizens to reduce petrol and diesel consumption, avoid non-essential gold purchases and foreign travel, and promote the use of locally manufactured products. Modi also advocated for greater use of public transport, electric vehicles (EVs), work-from-home practices, and domestic tourism to conserve foreign exchange reserves.

The Prime Minister emphasized the importance of reducing edible oil consumption and lowering dependence on chemical fertilizers. He encouraged the adoption of natural farming and the wider use of solar-powered irrigation systems. Stressing the ‘Vocal for Local’ initiative, Modi highlighted the need to increase the use of indigenous products to reduce import dependence and safeguard national interests during global economic disruptions.

Real Estate Sector Takes a Hit

The Nifty Realty index fell 2.28% to 804.85, marking a 2.74% decline over the past two consecutive trading sessions. Several major real estate stocks saw significant losses, including Aditya Birla Real Estate, which dropped 7.48%, Godrej Properties (down 3.55%), Anant Raj (down 3.36%), Lodha Developers (down 2.89%), Sobha (down 2.21%), DLF (down 2.08%), Oberoi Realty (down 1.76%), Prestige Estates Projects (down 1.57%), Brigade Enterprises (down 1.48%), and Phoenix Mills (down 0.45%).

Stocks in Spotlight

Despite the overall market downturn, some stocks performed well. Multi Commodity Exchange of India (MCX) gained 2.82% after reporting a 291% year-on-year (YoY) surge in consolidated net profit to Rs 530 crore in Q4 FY26, compared with Rs 135 crore in Q4 FY25. Revenue from operations jumped 205% YoY to Rs 889 crore for the quarter ended 31 March 2026.

Northern Arc Capital also saw a significant rise of 10.47% after its consolidated net profit surged 250.9% to Rs 132.50 crore on a 23.09% increase in revenue from operations to Rs 741.65 crore in Q4 FY26 over Q4 FY25.

GHV Infra Projects rose 1.91% after securing an engineering, procurement, and construction (EPC) contract worth €630 million (around Rs 7,000 crore) from Cameroon Tyres Factory Project SA.

Global Markets

Asian markets traded mixed on Monday, influenced by rising oil prices and escalating tensions between the U.S. and Iran. China’s annual inflation increased to 1.2% in April 2026 from 1% in March, surpassing market estimates of 0.8%. The rise was driven by higher transport, healthcare, and education costs, despite a decline in food prices.

President Donald Trump’s rejection of Iran’s latest proposal to end the war further fueled concerns over a prolonged Middle East conflict. Iran submitted a new proposal to U.S. negotiators, calling for an end to the war on all fronts and the lifting of sanctions on Tehran. However, Trump dismissed the proposal as “TOTALLY UNACCEPTABLE!” in a social media post.

Israeli Prime Minister Benjamin Netanyahu also stated that the war with Iran was “not over,” as the U.S. and Israel aim to curb Tehran’s nuclear ambitions. Netanyahu’s comments come ahead of Trump’s trip to China, where he is expected to meet with Chinese President Xi Jinping. The ongoing conflict and the closure of the Strait of Hormuz by Iran have led to a spike in global energy costs and a sharp rise in gas prices in the U.S.

Last week, U.S. equities rose on Friday following a better-than-expected April jobs report. The S&P 500 advanced 0.84% to end at 7,398.93, while the Nasdaq Composite climbed 1.71% to 26,247.08. Both indexes hit new all-time intraday highs and closed at record levels. The Dow Jones Industrial Average inched up 12.19 points, or 0.02%, to settle at 49,609.16. The positive sentiment was bolstered by the Bureau of Labor Statistics reporting that nonfarm payrolls rose by 115,000 last month, more than the 55,000 expected by media reports. The U.S. jobless rate remained steady at 4.3%.