The markets witnessed a sharp decline as it opened on Monday, with benchmark indices tumbling amid rising geopolitical tensions and a spike in crude oil prices. The Sensex plunged over 1,000 points, while the Nifty slipped below the 22,500 mark, reflecting broad-based selling across sectors.
The weak start was signaled earlier by GIFT Nifty, indicating negative investor sentiment. As trading progressed, losses deepened, driven by concerns over the escalating Iran conflict, which has pushed global oil prices close to $120 per barrel.
Among the worst-hit stocks were banking and IT heavyweights such as HDFC Bank, ICICI Bank, and Infosys. These stocks dragged the indices lower as investors worried about the impact of rising inflation and global uncertainty on earnings. Financial stocks faced pressure due to concerns over tighter liquidity, while IT companies saw selling amid fears of weaker global demand.
In contrast, oil and gas stocks emerged as key gainers. Shares of ONGC and Oil India rose as higher crude prices are expected to improve their profitability. Some metal stocks also showed resilience, supported by firm global commodity trends.
The surge in crude oil prices remains a major concern for India, given its heavy dependence on imports. Elevated prices could widen the current account deficit, fuel inflation, and weigh on corporate margins, particularly in sectors such as aviation, logistics, and manufacturing.
Global markets also reflected weak sentiment, with Asian indices trading lower and US futures pointing to continued volatility. The ongoing Iran conflict has heightened fears of supply disruptions and prolonged instability in the Middle East. Foreign institutional investors (FIIs) continued their selling spree, further pressuring domestic equities.