Why did Indian shares and the rupee decline sharply on Monday, according to the news?

Indian shares and the rupee declined sharply on Monday due to a drone attack on a nuclear power plant in the UAE, which intensified Middle East tensions and pushed Brent crude to $112 a barrel — a two-week high — while U.S. President Donald Trump's warning that 'the clock is ticking' for Iran signaled stalled efforts to resolve the conflict, triggering risk-averse sentiment across markets.

What were the key market impacts on Indian equities and currency as reported in the news?

The Nifty 50 fell 1.26% to 23,347.2 and the BSE Sensex dropped 1.20% to 74,335.62; fifteen of sixteen major sectors declined; small-caps and mid-caps lost 2.1% and 1.6%, respectively; the rupee weakened to an all-time low; foreign portfolio investors sold $23.52 billion worth of Indian stocks in 2025 — already exceeding the previous annual record — and heavyweights like HDFC Bank and Reliance Industries fell 1.4% and 1%, respectively.

Indian Shares Join Asian Slump as US-Iran Stalemate Continues

May 17, 2026

Indian stocks and the rupee declined as Middle East tensions pushed Brent crude to $112 per barrel. While Reliance and Tata Steel fell, Gland Pharma surged on strong quarterly profits.

reuters

2026-05-17

Indian Shares Join Asian Slump as US-Iran Stalemate Continues

2026-06-11

Reliance, Vedanta, Adani Join India's Drive to Cut China Rare Earth Dependence, Sources Say

2026-08-10

India's Gland Pharma beats quarterly profit view on strong Europe, US sales

Indian Shares Join Asian Slump as US-Iran Stalemate Continues

FAQ