Indian markets slide: Nifty drops 515 points, Sensex falls 1,950 in three sessions

Mumbai, May 11. Indian equity markets have logged sharp declines over the past three trading sessions. Starting May 7, the Nifty fell more than 2% — about 515 points — while the Sensex shed 1,950 points or 2.5%.

Sector-wise damage

IT, banking, and real estate indices saw the heaviest selling. Nifty Bank fell 3.2%, Nifty IT 4.1%, and Nifty Realty 3.8%. Pharma and FMCG were relatively stable as investors rotated into defensive stocks.

Sustained FPI selling

Foreign portfolio investors sold roughly ₹18,000 crore of equities over the three sessions. Domestic institutional investors (DIIs) bought ₹11,500 crore, providing some support but unable to fully absorb the FPI exit.

Tension and geopolitics

The decline came against the backdrop of the India-Pakistan tension anniversary. Analysts say that's not the main driver, however — they point to a stronger US dollar, rising US 10-year yields, and crude oil prices as the more decisive factors this time.

RBI's optimistic outlook

Meanwhile the RBI has retained its FY2026-27 GDP growth projection at 6.9%. The week of May 11-15 will bring CPI inflation, banking data, and trade figures that should determine market direction.

What investors should do

Mutual fund managers say the dip offers a "staggered entry" opportunity for long-term investors. SIPs should continue, with a focus on quality large-caps. Short-term traders are advised to be cautious.