The Indian stock market saw a sharp decline on Monday as escalating tensions in West Asia drove up crude oil prices and dampened global investor sentiment.
The benchmark indices ended the session deep in the red, with the BSE Sensex plunging 1,353 points, or 1.71%, to close at 77,566.16. The NSE Nifty 50 also dropped 422 points, or 1.73%, to settle at 24,028.05.
Broader markets faced even steeper losses. The BSE MidCap index fell 2%, while the SmallCap index declined 2.46%, reflecting widespread selling across sectors.
Investors lost ₹9 lakh crore in a session, as the overall market capitalisation of BSE-listed firms dropped to nearly ₹441 lakh crore from ₹450 lakh crore in the previous session.
The sharp fall came amid rising geopolitical tensions following the widening conflict involving the US, Israel and Iran, which pushed global crude oil prices sharply higher.
Brent crude has surged to $118 per barrel following the continued closure of the Strait of Hormuz, limited storage facilities in producer countries, and attacks on oil and gas infrastructure and vessels.
The market opened sharply lower in early trade. The Sensex started the session with a gap-down of 2,494 points at 76,424.55, while the Nifty opened 752 points lower at 23,697.80.
Also Read: Oil prices spike over 8% as conflict in West Asia intensifies
Rupee’s weakness is a major factor driving panic selling, as the domestic currency’s decline can exacerbate foreign capital outflows, heighten inflationary risks, and weigh on corporate earnings.
According to Bloomberg data, the rupee lost 58 paise to settle at 92.33 after hitting an all-time low of 92.3575 against the US dollar on Monday.
Global equity markets have also been under pressure as the spike in oil prices has heightened fears of rising inflation, particularly for countries like India that rely heavily on imported crude.
Brent crude has surged to $118 per barrel following the continued closure of the Strait of Hormuz, limited storage facilities in producer countries, and attacks on oil and gas infrastructure and vessels.
