MUMBAI: Indian equity markets closed sharply lower on Monday as escalating tensions in the Middle East pushed crude oil prices higher and dampened investor sentiment, according to media reports.
The benchmark Sensex fell 719.08 points, or 0.97%, to close at 73,524.26, while the Nifty 50 declined 242.10 points, or 1.04%, to settle at 23,123. Both indices ended at their lowest levels in nearly two months.
Investor sentiment weakened after fresh military developments involving Israel, Iran and Lebanon heightened concerns over a broader regional conflict that could disrupt global oil supplies and increase inflationary pressures.
According to media reports, Brent crude rose 3.81% to $96.64 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 4.32% to $94.45 a barrel. The rise in oil prices is particularly significant for India, which relies heavily on imported crude.
Analysts said higher crude prices could add to inflationary pressures, weaken the rupee and affect economic growth prospects, prompting investors to adopt a cautious approach.
Technology stocks also came under pressure as investors reassessed the sustainability of the artificial intelligence-driven rally that has supported global markets over the past year. The Nifty IT index fell 1.23%.
Selling was broad-based across sectors. The Nifty Realty index dropped 2.56%, Nifty Metal declined 2.33% and Nifty Auto lost 1.85%. Broader markets also remained weak, with the Nifty Midcap 100 falling 1.40% and the Nifty Smallcap 100 declining 1.92%.
Market volatility increased during the session, with India VIX, often referred to as the market’s fear gauge, rising 7.85%.
According to market analysts cited in media reports, stronger-than-expected U.S. economic data and persistent inflation concerns have reinforced expectations that interest rates could remain higher for longer, supporting bond yields and the U.S. dollar.
Investors are expected to closely monitor developments in the Middle East, movements in crude oil prices and upcoming U.S. inflation data for further market direction.
Analysts warned that any further escalation of the conflict could push oil prices closer to $100 a barrel, increasing pressure on emerging markets, including India.
Disclaimer: This content is based on media reports and market data available at the time of reporting and is for informational purposes only. Investors are advised to consult a qualified financial expert before making any investment decisions. VisionMP is not responsible for any loss arising from the use of this information.
