<div id="readability-page-1"><div>Nearly Rs 6 lakh crore in investor wealth was erased from Dalal Street on May 11 after Prime Minister Narendra Modi’s remarks on fuel conservation, gold purchases and foreign travel added to concerns around elevated crude prices and slowing consumption.The selloff hit sectors directly linked to discretionary spending, many of which were already underperforming in 2026.The BSE Consumer Discretionary index fell over 3%. It was already down 5.8% so far this year, after remaining largely flat with a 0.1% decline in 2025. Meanwhile, the Nifty Consumer Durables index fell nearly 4%.Hitesh Suvarna of JM Financial described the PM’s speech as “signalling before actual measures”.“The PM’s speech was targeted and should be considered as a precursor to actual austerity measures in a gradual manner if the conflict in West Asia lingers. A prolonged conflict could moderate GDP growth to 6 to 6.5%, and CAD could deteriorate to 1.9% of GDP. We believe that the PM’s call for conserving forex reserves is a precursor to actual austerity measures in the coming weeks.”Suvarna highlighted that oil accounts for ~20% of India’s total imports, gold for ~9%, and fertilisers for a manageable 2%.He also pointed out that the Liberalised Remittance Scheme (LRS) had already peaked at nearly $32 billion in FY24, with travel accounting for 58% of outward remittances in FY25 and Apr-Feb FY26.Ashwini Shami of Omniscience Capital, said, the speech amplified concerns around a prolonged geopolitical disruption. “PM’s speech potentially amplified anxiety about a prolonged US-Iran conflict, as talks appear to have reached a standstill. The speech acknowledged the government’s concern about rising Brent crude oil prices, which remained above $100, and the rupee’s depreciation, with the currency falling to a record low of 95.2.” He added that the market selloff reflects concerns over prolonged high commodity prices, inflationary pressures, and stress on the current account deficit.Market experts also estimate that India’s oil import bill could rise from about $180 billion in FY26 to nearly $250 billion in FY27 if elevated crude prices persist. That additional burden could push India’s current account deficit closer to the 3% of GDP mark. Analysts, however, noted that India’s forex reserves remain relatively comfortable at about $690 billion, offering the RBI some room to manage currency volatility in the near termShami said the correction was sharper in pockets where valuations had already become expensive.Gold, travel and real estate stocks in focusJewellery stocks saw the sharpest cuts after Modi’s comments on reducing gold purchases. Shares of Titan Company, Kalyan Jewellers, Senco Gold and Sky Gold fell between 7% and 12% intraday.Travel and tourism-linked companies weakened with shares of Thomas Cook India and Easy Trip Planners fell up to 5%, while aviation and hospitality-related names also remained under pressure.Real estate stocks extended declines with names like Aditya Birla Real Estate, Godrej Properties, and others falling as high as 7%.“Many of these companies are already fully priced, with price-to-earnings ratios exceeding 70 in some cases. Such premium valuations leave little room for error if growth slows,” as per Shami.Rupee pressure returns to the centre of the discussionINR fell to a record low of 95.20/USD on May 11. In FY26, the rupee has depreciated nearly 10% against the dollar, sharply weaker than its long-term average annual depreciation trend of roughly 3%.Ritesh Jain of Pinetree Macro, said that economies (such as India) dependent on oil imports eventually see the pressure reflect either through slower growth or currency depreciation. “When global oil prices rise then the country which is dependent on oil imports has choice of passing it to the consumer, which leads to slowdown in economic growth, or not passing it on, which raises the current account deficit and comes out via pressure on currency,” Jain said.He added that markets are increasingly discussing the possibility of tighter capital controls, higher taxes on overseas travel and changes to outward remittance rules if oil prices remain elevated.Meanwhile, Rohit Srivastava of Indiacharts indicated that the markets' negative reaction to the prospect of weaker consumption, could be rather a vicious loop of a further slowdown: “The markets did not like the commentary coming from the center on spending patterns. If we spend less and use less, the economy slows down further.”“The centre of the problem is the rupee that lost another 85 paise today,” he added.“PM Modi's message amid West Asia conflict: ‘Use oil wisely, prioritise WFH, don't buy gold for a year’ — indication of some controls coming? Or preparing us for the overdue price hikes?”, asks independent market analyst, Ambareesh Baliga.EVs, power and localisation themes seemingly in positive lightWhile consumption-linked sectors bore the brunt of the sell-off, investors showed selective buying in themes aligned with lower oil dependence, energy security, and domestic manufacturing. This rotation offered a counter-narrative to the broader weakness.Electric Vehicles and Public Transport emerged as clear relative outperformers. Shares of EV and green mobility companies rallied as PM Modi urged reduced petrol/diesel use, greater adoption of EVs, public transport, and work-from-home.Ather Energy rose about 6.6%, while JBM Auto, Ola Electric, Olectra Greentech advanced and Tata Motors rose as high as 4%.Solar pumps (Shakti Pumps, KSB Pumps), railways (CONCOR), and domestic tourism names (IHCL, ITC Hotels, Ixigo) attracted interest due to the shift toward domestic and fuel-efficient alternatives. Made-in-India plays such as VIP Industries and Safari were also in focus.Market veteran Ajay Bagga has put the energy challenge in perspective: “The energy transition will not be won by solar panels. It will be won — or lost — by the electricity grid... Grid investment is the most underpriced trade of the decade.”This focus on energy infrastructure and localisation gains even more relevance amid signs of a broader private corporate capex revival.According to a recent CII report, private sector capital expenditure jumped 67% YoY to Rs 7.7 lakh crore, with manufacturing alone accounting for Rs 3.8 lakh crore. Manufacturing capacity utilisation has climbed to 75.6%, order books grew 10.3% YoY, and bank credit growth stood at ~14% in H2 FY26. Corporate balance sheets are healthier than in previous cycles, supported by China+1 diversification.</div></div>

CHIQ

On May 11, nearly Rs 6 lakh crore was wiped out from Dalal Street following PM Modi's speech on fuel conservation and foreign travel, raising concerns over high crude prices and slowing consumption. The BSE Consumer Discretionary index fell over 3%, while the Nifty Consumer Durables index dropped nearly 4%. Analysts predict that prolonged geopolitical tensions could lead to a GDP growth moderation and a worsening current account deficit. The rupee hit a record low of 95.20/USD, reflecting pressures from rising oil prices. Despite the sell-off, some investors are focusing on sectors related to energy security and domestic manufacturing.

Nearly Rs 6 lakh cr wiped out! D-Street repositions as PM Modi’s speech sharpens pressure on discretionary sectors