Key Market Takeaways from PM Modi's Speech on May 10: All You Need to Know

On the evening of May 10, 2026, PM Modi addressed the nation at a BJP rally in Hyderabad. It was not a budget speech. It was not a policy announcement. But by the next morning, the market looked like it had just heard one.

The Sensex crashed over 1,300 points. The Nifty dropped more than 330 points. And India VIX, which measures market fear, jumped nearly 10%. All of this from a speech where the PM simply asked people to change a few habits.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

So what exactly did he say, and why did it hit the markets so hard?

What PM Narendra Modi Said

The Prime Minister made four key appeals to the public. He asked people to:

1. Reducing fuel usage can be achieved by taking advantage of public transportation services, working from home (WFH) where possible, and adopting electric vehicles (EV).

2. Avoid buying gold for at least one year, especially for weddings.

3. Skip unnecessary foreign travel for the time being.

4. Reduce edible oil consumption as a way to ease import pressure.

He framed all of this as a matter of national responsibility. India imports around 85-88% of its crude oil, and the ongoing conflict in West Asia has pushed Brent crude oil prices above $105 per barrel. With oil marketing companies (OMCs) reportedly absorbing losses of around ₹30,000 crore per month due to regulated fuel pricing, the pressure on the government and the economy is very real.

According to the Reserve Bank of India's latest half-yearly reserves management, India's forex reserves stood at $691.11 billion at the end of March 2026, providing roughly 11 months of import cover. That is not a crisis number, but the pace at which crude imports are burning through reserves has clearly started to worry the government.

Rather than announcing new taxes or import restrictions, PM Modi chose to appeal directly to household behaviour. That itself was remarkable, and markets read it as a sign that the situation is serious.

How the Markets Reacted

The reaction was swift and sector-specific.

Jewellery stocks took the biggest hit. Titan Company, Kalyan Jewellers, Senco Gold, and Sky Gold all fell sharply, with some crashing up to 12% intraday. Investors feared lower gold demand or possible import duty hikes as a follow-up policy measure. Gold and crude oil together are India's two largest contributors to the current account deficit, so the PM's appeal on gold was not just symbolic.

Airline and travel stocks also came under pressure. Indigo and Spicejet declined nearly 5% intraday. Crude prices affect aviation fuel costs directly, and PM Modi's appeal to avoid foreign travel added to the nervousness around discretionary spending.

On the contrary, electric vehicles and green energy shares gained strength. PM Modi’s call to shift to EVs and save on fuel was viewed positively by investors in the clean mobility sector.

Why This Is Happening

This is because of the blockage of the Strait of Hormuz, which since the end of February 2026 has been preventing the movement of oil tankers through the strait, which usually transports about 20% of the oil and LNG in the world.

It has posed a great dilemma for India that relies more heavily on Middle Eastern crude than most other nations. The rise in crude prices translates into a greater burden for India in terms of higher import costs, a depreciated rupee, and increased levels of inflation.

This is the backdrop against which PM Modi's speech needs to be understood. It was not alarmist. It was cautionary, and that caution itself sent a message to markets.

What Other Major Nations Are Doing

India is not alone in facing this crisis, and several countries have taken their own steps to manage the supply shock.

United States: Being one of the biggest producers of energy resources has made all the difference. The United States has reported that its crude and petroleum product exports reached almost 12.9 million barrels per day during April 2026. The United States also tapped its Strategic Petroleum Reserve, which held about 409 million barrels of oil in April 2026 as part of a coordinated international effort by the International Energy Agency.

Japan: According to The Japan Times, the Japanese refiners rely on about 95% of their oil requirements from the Middle East, with 70% of this oil being transported through the Strait of Hormuz. In March 2026, Japan began to release 80 million barrels of oil from its emergency stocks, which is 15 days of domestic consumption.

Europe: Natural gas prices in Europe surged sharply after the Strait of Hormuz closure. Several European airports began limiting jet fuel supplies, and the UK saw early flight cancellations. Countries like Spain released around 11.5 million barrels of strategic oil reserves as part of the IEA's coordinated response.

The IEA itself launched what it called its largest ever emergency stock release: 400 million barrels, significantly more than the 182 million barrels released after Russia invaded Ukraine in 2022.

China: China had been building its strategic reserves throughout 2025 and held an estimated 1.4 billion barrels as of December 2025, the largest in the world. This has given it a buffer to work through in the short term.

New Zealand and Australia: Both nations, which source much of their fuel from Asia, have faced trickle-down effects. New Zealand released petroleum reserves and offered tax credits to working families to help with rising fuel costs. From 7 April, about 143,000 working families with children will get an extra $50 a week through a boost to the in-work tax credit. 

In a rare address to the nation on April 1, 2026, Australian Prime Minister Anthony Albanese called for calm and urged citizens to reduce fuel consumption amid growing concerns over petrol and diesel shortages caused by conflict in the Middle East.

Conclusion

The common thread across all of these responses is simple: every major economy is either drawing down reserves, reducing demand, or both. PM Modi's speech fits squarely into this global pattern of governments asking citizens to do their part.