Indian stock markets witnessed heavy selling pressure on Monday as rising crude oil prices and renewed tensions in West Asia shook investor confidence. The BSE Sensex plunged nearly 1,300 points, while the NSE Nifty slipped below the 23,800 mark amid broad-based losses across sectors.
The sharp decline came after crude prices crossed $105 per barrel following fresh uncertainty over US-Iran peace talks. Investors worried that higher oil prices could increase inflation, weaken the rupee and raise costs for businesses and consumers in India.
Among the biggest losers were aviation, banking and consumer stocks. Shares of InterGlobe Aviation, which operates IndiGo, fell sharply on concerns over rising aviation fuel costs. Banking stocks such as State Bank of India and IndusInd Bank also came under pressure due to weak market sentiment and profit-booking.
Jewellery and retail stocks including Titan Company declined after concerns emerged over slowing consumer demand and higher import costs linked to rising crude oil prices.
However, oil exploration and energy companies moved higher as crude prices surged globally. Shares of Oil and Natural Gas Corporation and Oil India gained during the session as investors expected stronger earnings from higher oil realisations.
The Indian rupee weakened against the US dollar during trading, adding to concerns over imported inflation. Analysts said foreign investors also remained cautious due to global geopolitical uncertainty and volatile commodity prices.