Indian stock markets witnessed a sharp selloff on Monday upon opening, as rising global crude oil prices, geopolitical tensions in West Asia, and persistent foreign investor outflows rattled investor confidence. The BSE Sensex plunged over 1,050 points during intraday trade, while the NSE Nifty50 slipped below the crucial 23,900 mark.
The decline came after international crude oil prices surged past the $100-per-barrel level following uncertainty surrounding US-Iran negotiations. Since India depends heavily on oil imports, the spike in crude prices raised concerns over inflation, fiscal pressure, and economic growth.
Market heavyweight Reliance Industries came under strong selling pressure due to worries over rising input costs and weaker consumer sentiment. Banking stocks including HDFC Bank and ICICI Bank also dragged the indices lower as investors turned cautious amid global uncertainty. Aviation shares, particularly IndiGo parent InterGlobe Aviation, declined sharply as higher fuel prices threatened profitability.
Auto and consumer stocks remained under pressure throughout the session, reflecting fears that inflationary trends could weaken demand. Broader market sentiment also stayed negative, with midcap and smallcap stocks witnessing widespread selling.
However, oil exploration and energy companies bucked the trend. ONGC and Oil India traded higher as rising crude prices are expected to improve their revenue outlook. Select defensive sectors such as utilities and energy also showed relative resilience amid the broader market weakness.
Foreign institutional investors continued their selling streak, adding pressure on the rupee, which weakened further against the US dollar. Analysts believe continued volatility in global energy markets and geopolitical developments could keep Indian equities under stress in the near term.
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