Indian equity markets recorded a sharp decline on Monday as rising crude oil prices and escalating tensions between the United States and Iran weighed on investor sentiment. Both benchmark indices, BSE Sensex and Nifty 50, traded significantly lower amid broad-based selling across sectors.
Market participants remained cautious from the opening bell as crude oil prices surged sharply following developments linked to geopolitical tensions. The increase in oil prices exerted pressure on global financial markets and had a direct impact on Indian equities.
At around 9:30 a.m. on Monday, benchmark indices were trading substantially lower. The Nifty 50 declined by about 713.70 points, or approximately 2.92 percent, to 23,736.75. The BSE Sensex fell by about 2,347.10 points, or roughly 2.59 percent, to 76,571.80.
Market participants noted that geopolitical tensions and rising crude oil prices were key factors influencing market direction, contributing to increased volatility in equity markets.
All 30 constituent stocks of the BSE Sensex were trading in negative territory during early trade, indicating broad-based selling pressure across the market.
InterGlobe Aviation, the operator of IndiGo, recorded the steepest decline, with the stock falling by about 7.5 percent. Shares of Tata Steel, Larsen & Toubro, State Bank of India, and Maruti Suzuki also registered notable declines.
Other stocks trading lower included Asian Paints, Adani Ports and Special Economic Zone, ICICI Bank, Trent Limited, and Bajaj Finance.
The decline across these companies indicated selling pressure across multiple sectors.
Most sectoral indices were trading lower during Monday’s session, reflecting widespread weakness across sectors.
The Nifty PSU Bank Index recorded the largest decline, falling by about 5.5 percent. The Nifty Auto Index declined by approximately 4.14 percent.
The Nifty Metal Index, Nifty Private Bank Index, and Nifty Realty Index each declined by more than 3 percent during the session.
The broad decline across sectoral indices indicated that weakness was not limited to a few companies but was visible across most sectors.
Global markets were primarily influenced by a sharp rise in crude oil prices. Brent crude futures rose by approximately 21 percent during the Asian trading session, with prices reaching about $112 per barrel.
The increase followed rising tensions between the United States and Iran and concerns about potential disruptions to oil supply.
Major oil-producing countries including Kuwait, the United Arab Emirates, and Iran announced production cuts. The development followed an attack by Iran on oil vessels passing through the Strait of Hormuz. The incident led to the temporary closure of the key shipping route, raising concerns about global oil supply.
The surge in oil prices also weighed on global equity markets.
In Asia, South Korea’s KOSPI Index declined by about 8 percent, while Japan’s Nikkei 225 Index fell by more than 6 percent.
U.S. markets also closed lower in the previous session. The S&P 500 declined by about 1.33 percent, the NASDAQ Composite fell by around 1.59 percent, and the Dow Jones Industrial Average ended about 0.95 percent lower.
Commodity markets also reflected the impact of rising oil prices and a ber U.S. dollar. Gold and silver futures traded lower.
Gold prices were down by about 1.7 percent, while silver declined by approximately 4.6 percent.
Amid the broader market decline, activity in the primary market continued. The initial public offering of Rajputana Stainless opened on Monday. The issue is a book-built offering of about ₹254.98 crore comprising a fresh issue and an offer for sale. The IPO will close on Wednesday.
The IPO of Efin Agro India is in its final day of subscription. By the second day, the issue had been subscribed about 0.13 times.
The IPO of Srinibas Pradhan Construction is also in its final day, with subscription at about 0.09 times by the second day.
Meanwhile, Acetech E-Commerce is scheduled to list on the stock market on Monday.
