Indian Stock Market Faces Significant Decline Amid Economic Concerns

The Indian stock market experienced a dramatic decline on Monday, with the Sensex dropping over 1,300 points. Key sectors such as jewellery, electric vehicles, and airlines were notably affected by the Prime Minister's recent economic recommendations. Jewellery stocks plummeted after a call to limit gold purchases, while EV shares surged in response to a push for greener alternatives. Airlines and travel stocks also faced significant losses. This article delves into the market's performance and the implications for various sectors.

By Narendra Chaudhary May 11, 2026, 16:16 IST

Market Overview

On Monday, the Indian stock market experienced a notable downturn, with the Sensex plummeting by over 1,300 points, while the Nifty index settled at 23,800. Out of the Nifty 50 stocks, approximately 39 recorded losses, with Titan Company, InterGlobe Aviation, and SBI being the most affected. Various sectors, including jewellery, electric vehicles (EVs), and airlines, were hit hard following the Prime Minister's recommendations to address the ongoing Middle East crisis. Ultimately, the Sensex closed down 1,313 points, or 1.70%, finishing at 76,015.28, while the Nifty fell by 1.50%, closing at 23,815.85.

Jewellery Sector Decline

Jewellery stocks tumble:

Following Prime Minister Narendra Modi's suggestion to refrain from unnecessary gold purchases for a year, shares of jewellery companies saw a significant drop, with declines reaching up to 9% during early trading. Titan emerged as the biggest loser in the Nifty, falling 7% or 291 points to trade at 4,222, after recently hitting an all-time high following its quarterly results. Other jewellery firms, such as Kalyan Jewellers, saw a 9% decrease to 389, while Senco Gold dropped 9% or 31 points to 333 on the BSE. PC Jeweller also faced a 5% decline.

Electric Vehicle Stocks Surge

EVs shares spiked:

In contrast, shares of leading electric vehicle and green mobility companies surged following the Prime Minister's call for reduced petrol and diesel usage, encouraging the public to utilize metro services, carpool, and transition to electric vehicles. Ather Energy saw a remarkable increase of 6.55%, reaching Rs 975.00, making it one of the top gainers. JBM Auto rose by 4.45% to Rs 678.85, while Ola Electric Mobility climbed 3.02% to Rs 37.17. Olectra Greentech also advanced by 2.89%, reaching Rs 1,379.40.

Airlines and Travel Sector Decline

Airlines and travel sector stocks fall:

Stocks in the airlines and travel sectors, including IndiGo, SpiceJet, ixigo, and Yatra Online, experienced declines of up to 7%. Interglobe Aviation, which operates IndiGo, fell over 4% to a low of Rs 4,335, while SpiceJet dropped more than 4% to Rs 13.41. Additionally, ixigo, Yatra Online, Thomas Cook, and Easy Trip Planners saw declines of up to 7%, with Thomas Cook being the most affected, hitting a low of Rs 91.94.