Sensex ends 1,313 points lower, Nifty below 23,900; Titan down 7%
The BSE Sensex plunged 1,312.91 points, or 1.70%, to close at 76,015.28, while the Nifty 50 fell 360.30 points, or 1.49%, to settle at 23,815.85, slipping below the key 24,000 mark.
Benchmark stock market indices closed lower on Monday, as rising crude oil prices, fresh tensions in West Asia and concerns over the economic impact of higher energy costs triggered heavy selling across sectors.
The BSE Sensex plunged 1,312.91 points, or 1.70%, to close at 76,015.28, while the Nifty 50 fell 360.30 points, or 1.49%, to settle at 23,815.85, slipping below the key 24,000 mark.
The selloff was broad-based, with banking, auto and metal stocks witnessing strong pressure during the session.
Investor sentiment turned weak after crude oil prices jumped again following US President Donald Trump’s rejection of Iran’s peace proposal.
Brent crude rose above $103 per barrel, while WTI crude traded near $97.
Higher crude oil prices are negative for India because the country imports most of its oil needs. Rising oil prices increase the import bill, put pressure on the rupee and raise inflation concerns.
Markets also reacted cautiously to Prime Minister Narendra Modi’s remarks asking people to conserve fuel, avoid unnecessary foreign travel and postpone gold purchases for weddings for one year.
Investors appeared concerned that prolonged high oil prices could affect economic growth, inflation and corporate earnings.
HEAVY SELLING IN BANKING, AUTO STOCKS
Among Sensex stocks, Titan Company was the worst performer, falling 6.83%.
Titan shares came under pressure after concerns emerged that reduced gold purchases could impact jewellery demand following the Prime Minister’s remarks.
Other major losers included:
- Bharti Airtel, down 4.18%
- State Bank of India, down 4.52%
- Reliance Industries, down 3.31%
- Eternal, down 4.08%
- IndiGo parent InterGlobe Aviation, down 4.69%
- Mahindra & Mahindra, down 2.48%
Banking stocks also saw sharp losses, with:
- HDFC Bank down 2.13%
- ICICI Bank slipping 0.11%
- Bajaj Finance falling 1.98%.
Only a handful of stocks managed to close higher.
Sun Pharma gained 1.36%, while Hindustan Unilever rose 0.85%.
Defensive sectors such as FMCG and pharma saw relatively better buying compared to the broader market.
BROADER MARKETS ALSO UNDER PRESSURE
The broader market also ended weak.
The Nifty Midcap 100 index fell 1.05%, while the Nifty Smallcap 100 declined 1.13%.
India VIX, which measures market volatility, jumped more than 10% to 18.55, indicating rising nervousness among traders.
Vinod Nair, Head of Research at Geojit Investments Limited, said rising geopolitical tensions and concerns over crude oil prices weighed heavily on markets.
“The benchmark index slipped below the 24,000 mark as renewed Gulf tensions, following Trump’s rejection of Iran’s peace proposal, weighed on investor sentiment,” he said.
According to Nair, the market mood turned more cautious after the Prime Minister’s remarks on conserving energy and reducing non-essential spending.
“The cautious mood deepened after the PM’s appeal to conserve energy and avoid non-essential foreign travel, prompting investors to reassess the economic impact of higher crude prices, INR weakness, and pressure on the current account deficit,” he added.
Nair said India’s strong fiscal position and forex reserves are helping absorb the current oil shock, but warned that prolonged geopolitical tensions could increase economic pressure.
“Meanwhile, rising bond yields and persistent FII outflows are likely to keep markets range-bound in the near term,” he said.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)