Indian equity markets were deep in the red in early trade on May 12, with the Sensex and Nifty extending losses through the session as a combination of surging crude oil prices, renewed US-Iran ceasefire fears, and a structural threat to the IT sector from OpenAI’s enterprise deployment announcement kept sellers firmly in control.
The Sensex, which opened 326.89 points lower, was extending those losses in early trade. The index is trading beneath its 50-day moving average, which itself is positioned below the 200-day moving average — a technically bearish alignment that signals subdued short-term momentum relative to longer-term trends. The Nifty mirrored this pattern, trading below the 23,600 mark in early trade.
Sectoral performance so far
Of the 37 sectors tracked on the BSE, only seven are in positive territory while 30 are trading in the red as of early trade. The Information Technology sector is the sharpest decliner, down 3.17%, pressured by broad-based losses across large and midcap IT names following OpenAI’s announcement of a new enterprise AI deployment company. The S&P BSE Teck index hit a fresh 52-week low in early trade.
The Oil & Gas sector is the standout exception, up 0.64%, supported by the government’s crude oil royalty rate cut announcement benefiting ONGC and Oil India.
Large-cap movers in early trade
ONGC is the top large-cap gainer, up 5.07%, on the royalty rate revision. Oil India is leading midcap gainers at 5.80% on the same catalyst. On the losing side, Persistent Systems is the largest large-cap decliner at 4.20%, with Birlasoft down 5.22%, both caught in the IT sector rout.
Mid and small-cap indices
The S&P BSE 150 Midcap Index is down 0.69% while the S&P BSE 250 Smallcap Index has fallen 0.96% in early trade. Zydus Wellness is among the top small-cap gainers, up 5.44%, while JSW Energy and Metropolis Healthcare are among the notable decliners, falling 5.82% and 5.20% respectively.
Market breadth extremely weak
The advance-decline ratio across the BSE500 is deeply negative, with only 84 stocks advancing against 415 declining — a ratio of approximately 0.2x — confirming that the selling is broad-based rather than sector-specific.
Markets are live and figures are as of early trade on May 12, 2026. This article will be updated as the session progresses.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a registered financial advisor before making any investment decisions. Business Upturn does not hold any position in the securities mentioned.