Equity markets came under heavy selling pressure on Monday, with the Sensex plunging more than 900 points and the Nifty 50 slipping below 22,900 as rising crude oil prices, foreign fund outflows and geopolitical uncertainty weighed on investor sentiment.
The Sensex fell nearly 1,000 points during morning trade, while the Nifty dropped below the crucial 23,000 mark and moved towards 22,900. The sharp decline came after both benchmarks had already recorded their seventh consecutive weekly fall last week.
The selling was broad-based, with investors cutting exposure across several sectors. Banking and financial stocks were among the major drags, while technology, healthcare and other key sectors also faced pressure.
Crude oil remained one of the biggest concerns for investors. Brent crude moved above $106 a barrel amid uncertainty over developments involving the US and Iran and concerns around supplies through the Strait of Hormuz.
Higher oil prices are particularly important for India because the country depends heavily on crude imports. A sustained rise in prices can increase the import bill, put pressure on the rupee and add to inflation concerns. It can also squeeze corporate margins, particularly for companies with high fuel and transportation costs.
The Indian rupee also remained under pressure against the US dollar, adding to concerns about the broader economic impact of higher crude prices. A weaker rupee makes imports more expensive and can further complicate the inflation outlook.
Foreign selling weighs on Dalal Street
Continued foreign institutional investor selling has emerged as another major pressure point for the Indian stock market. Foreign investors sold equities worth around ₹3,694 crore on September 25, while domestic institutional investors bought shares worth about ₹2,838 crore.
Persistent foreign outflows, elevated US bond yields and uncertainty around global interest rates have kept investors cautious. Domestic buying has provided some support, but it has not been enough to completely offset overseas selling.
The sharp fall on Monday also erased much of the optimism created by Friday’s recovery. The Sensex had gained 315 points in the previous session, while the Nifty rose more than 77 points. However, the recovery failed to change the broader market trend.
Axis Bank, Asian Paints among gainers
Despite the broad sell-off, a few stocks managed to remain in positive territory. Axis Bank, Asian Paints, HCL Technologies and Mahindra & Mahindra were among the Nifty stocks showing relative strength in early trade.
Their gains stood out against the wider market decline, highlighting the stock-specific nature of trading even during a sharp correction.
On the other side, Infosys, Max Healthcare and Tata Motors Passenger Vehicles were among the notable Nifty losers. The selling reflected continued weakness in several heavyweight and large-cap counters.
The broader market was also under pressure, with mid-cap and small-cap stocks witnessing declines as investors turned cautious and reduced risk exposure.
Adani Power, SAIL in focus
Several stocks remained in focus because of company-specific developments.
Adani Power completed the merger of 10 wholly owned subsidiaries as part of its restructuring exercise. The merger became effective on September 25.
SAIL and Bharat Coking Coal Ltd entered into an agreement to jointly develop and operate two coal blocks in West Bengal. The blocks have a combined peak rated capacity of around 4 million tonnes a year.
Ola Electric also remained on investors’ radar after announcing that its board would meet to consider a proposal to raise funds through a rights issue.
These developments provided individual stock cues even as the broader market remained dominated by macroeconomic concerns.
Crude, rupee and global cues in focus
Investors will closely track crude oil prices, foreign fund flows, the rupee and global market trends for further direction. Developments surrounding the US-Iran situation and the Strait of Hormuz could remain particularly important for oil prices and emerging-market sentiment.
The Nifty’s fall below 23,000 has also put the spotlight on key support levels as traders assess whether the current correction could deepen. Market volatility is expected to remain elevated as investors balance domestic fundamentals with global risks.
With crude oil prices above $106 a barrel, continued FII selling and pressure on the rupee, Sensex today and Nifty today are likely to remain closely watched. Monday’s sell-off has once again underlined how quickly global developments can influence Indian equities and investor sentiment.