Indian equity markets ended Monday’s session on a weaker note, as a surge in crude oil prices and escalating geopolitical tensions in West Asia dampened investor sentiment and curtailed risk-taking.
The benchmark indices declined sharply, with the Nifty 50 closing at 23,842.65, down 207.95 points or 0.86 per cent. The BSE Sensex fell 702.68 points, or 0.91 per cent, to settle at 76,847.57.
Market participants remained cautious despite some residual optimism stemming from last week’s ceasefire framework. Analysts noted that uncertainty surrounding global developments continues to overshadow positive cues.
Vinod Nair, Head of Research at Geojit Investments, said that while the ceasefire framework has provided limited support and encouraged selective buying, broader sentiment remains fragile. He pointed out that markets reacted negatively to the collapse of US-Iran peace talks and the subsequent announcement of a US naval blockade in the Strait of Hormuz, which pushed crude oil prices above the USD 100 per barrel mark.
Elevated oil prices, he added, have intensified concerns over inflation, currency stability, and overall macroeconomic health, thereby exerting pressure on equities.
Selling was broad-based across sectors. The Nifty Auto index dropped more than 2 per cent, while Nifty IT declined 1.16 per cent. Nifty FMCG and Nifty Pharma fell 1.29 per cent and 0.29 per cent, respectively. Banking stocks also remained under pressure, with the Nifty Private Bank index ending in negative territory. The Nifty Oil and Gas index slipped 1.41 per cent.
Meanwhile, Brent crude prices surged over 7 per cent to hover around USD 102 per barrel, amplifying concerns about inflationary pressures and global economic stability.
Investor sentiment weakened further following a statement by US President Donald Trump on social media platform Truth Social, announcing that the United States Navy would begin intercepting vessels in the region to restrict Iran’s maritime activity. The move, described as a blockade of the Strait of Hormuz, heightened fears of supply disruptions in global oil markets.
On the domestic front, the ongoing fourth-quarter earnings season is leading to stock-specific movements, although broader market direction remains influenced by global cues.
Across Asia, markets largely ended in the red. Japan’s Nikkei 225 fell 0.75 per cent, Hong Kong’s Hang Seng index declined 0.69 per cent, South Korea’s Kospi dropped 0.87 per cent, and Singapore’s Straits Times index edged down 0.11 per cent. Taiwan was the lone outlier, with its Weighted index rising marginally by 0.11 per cent.
(With inputs from ANI)