Benchmark equity indices tumbled in early trade on Wednesday (May 20, 2026) due to elevated oil prices, weak global market trends and renewed fears of restart of military operations if Iran failed to reach a peace deal.

The 30-share Bombay Stock Exchange (BSE) Sensex tanked 517.11 points to 74,667.51 in early trade. The 50-share National Stock Exchange (NSE) Nifty dropped 152.45 points to 23,475.80.

From the 30-Sensex firms, Tata Steel, Bharat Electronics, Mahindra & Mahindra, Maruti, Eternal and UltraTech Cement were among the major laggards. Infosys, Tata Consultancy Services, Reliance Industries and Tech Mahindra were the winners.

Brent crude, the global oil benchmark, traded at $110.8 per barrel. In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE (Shanghai Stock Exchange) Composite index and Hong Kong’s Hang Seng index quoted lower.

U.S. markets ended lower on Tuesday (May 19, 2026). Broader Asian markets opened under pressure after renewed concerns emerged around the potential escalation in West Asia. Investor sentiment weakened following U.S. President Donald Trump’s statement that he was an hour away from authorising military action against Iran before eventually postponing the decision.

“The development has once again revived fears surrounding geopolitical instability, global energy supply disruptions, and volatility in crude oil markets,” Hariprasad K., Research Analyst and Founder, Livelong Wealth, said.

U.S. President Donald Trump on Tuesday (May 19, 2026) said he was an hour away from deciding to restart attacks on Iran, but put it off after receiving a call from interlocutors, including Qatar and the United Arab Emirates (UAE), on Tehran being “reasonable” in the peace talks.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,457.49 crore on Tuesday (May 19, 2026), according to exchange data.

U.S. Vice-President J.D. Vance has said Iran having an atomic weapon would trigger a “nuclear arms race” worldwide and asserted that the U.S. was “locked and loaded” to restart military operations if Tehran failed to reach a peace deal.

“Sentiment across Indian markets is expected to remain fragile, with rising energy prices, currency weakness and uncertainty surrounding the West Asia conflict continuing to weigh on investor confidence,” Ponmudi R., Chief Executive Officer (CEO) of Enrich Money, an online trading and wealth-tech firm, said.

On Tuesday (May 19, 2026), the Sensex declined 114.19 points, or 0.15%, to settle at 75,200.85. The Nifty dipped 31.95 points, or 0.14%, to end at 23,618.