Indian benchmark indices fell in early trade on Monday, with the BSE Sensex dropping more than 300 points and the NSE Nifty 50 slipping below the 23,300 mark, as rising crude oil prices and global uncertainties weighed on investor sentiment.
The Sensex declined around 300 points during morning trade, while the Nifty hovered near the 23,250–23,300 range. The cautious start came despite earlier indications of a positive opening from GIFT Nifty, which had signalled gains ahead of the session.
Investor sentiment remained fragile amid escalating geopolitical tensions in the Middle East and a sharp surge in global crude oil prices. Oil prices climbed above the $100-per-barrel level, raising concerns about inflation and India’s import bill, as the country imports a large share of its crude oil requirements.
Asian markets also traded lower during the session, reflecting a broader risk-off mood among investors. The cautious trend followed losses on Wall Street in the previous session, which added to volatility across global equity markets.
Heavy selling in banking, financial and metal stocks dragged the indices lower in early trade. Shares of Hindalco Industries were among the notable losers, reflecting weakness in the metal segment and cautious investor sentiment.
Foreign institutional investors (FIIs) also continued to offload Indian equities, putting additional pressure on domestic markets. Persistent outflows from overseas investors have remained a key factor affecting the momentum of Indian stocks in recent weeks.
However, some stocks managed to buck the broader market trend. Shares of Tata Motors and Adani Total Gas saw buying interest, helping limit deeper losses in the benchmark indices. Company-specific developments also kept stocks such as Waaree Energies and IDBI Bank in focus during the session.
Market analysts expect volatility to remain high in the coming days as investors closely track geopolitical developments, movements in global crude prices and trends in foreign investor flows.
Experts noted that a sustained rise in crude oil prices could increase inflationary pressures and affect India’s fiscal balance, prompting investors to remain cautious in the near term.
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