Domestic equity benchmarks opened sharply lower on Monday morning as rising tensions in West Asia and surging crude oil prices triggered heavy selling across sectors, dragging the Sensex down nearly 900 points in early trade.
The BSE Sensex dropped 890.31 points, or 1.18 per cent, to 74,347.68 during the opening session, while the NSE Nifty50 fell 229.30 points, or 0.97 per cent, to 23,414.20.
The weakness comes amid mounting concerns over the conflict involving the US and Iran, with investors globally turning cautious after fresh remarks by US President Donald Trump heightened fears of further escalation in the region. Rising crude prices and pressure on the rupee also added to the nervousness in Indian markets, analysts said.
Selling pressure was visible across most sectors, particularly in banking, auto, metals and real estate stocks. Nifty PSU Bank emerged among the top losers, slipping 1.75 per cent, while Realty and Consumer Durables indices also saw sharp declines. Financial Services, Auto, Metal and Private Bank indices were all trading over 1 per cent lower in early trade.
Oil & Gas and FMCG counters too remained under pressure, though losses in pharma and healthcare stocks were relatively limited.
According to market experts, global developments continue to dictate sentiment on Dalal Street.
Ponmudi R, CEO of Enrich Money, said investor sentiment has weakened due to growing uncertainty around the US-Iran situation and fears linked to the Strait of Hormuz.
“Indian markets are likely to open on a cautious note as renewed geopolitical rhetoric from the US continues to weigh on global investor sentiment,” he said.
He added that the rupee breaching the 96 mark against the US dollar reflected persistent pressure from elevated crude prices, strong dollar demand and weak global risk appetite.
Why are Indian stock markets falling today?
Analysts said soaring crude oil prices have become a major concern for markets, especially for import-heavy economies like India.
Rajesh Palviya, Head of Research at Axis Direct, said Asian markets remained weak in morning trade while crude prices climbed further after Trump’s latest warning to Iran.
“Crude oil has risen to USD 110.7 amid fresh warnings from Trump to Iran. GIFT Nifty is at 23,555.5, implying a gap-down of about 100 points,” he said.
Palviya warned that if the market fails to hold key opening levels, Nifty could quickly test the 23,400-23,350 range.
Meanwhile, Shrikant Chouhan, Head Equity Research at Kotak Securities, said technical indicators also pointed to weakness in the near term.
“Technically, on weekly charts, it has formed a bearish candle and is currently trading comfortably below short-term moving averages, which is largely negative,” Chouhan said.
He added that while a pullback rally cannot be ruled out above the 23,600 level, a break below it could trigger another round of selling pressure.
IT stocks resist broader market selloff
Despite the broader weakness, information technology stocks showed some resilience and were trading in positive territory during early trade.
However, heavyweights including Power Grid, Tata Steel, Shriram Finance, Maruti Suzuki, Eicher Motors, Mahindra & Mahindra, Titan, HDFC Bank, Bajaj Finance and IndiGo were among the major laggards, falling between 1 and 3 per cent.
The India VIX, often referred to as the market’s fear gauge, jumped nearly 6 per cent to hover around 20, reflecting heightened volatility expectations among investors.
Global commodity markets also remained tense. Brent crude climbed over 2 per cent to trade above USD 111 per barrel, while WTI crude crossed USD 108 per barrel.
Asian markets largely mirrored the weak mood, with Japan’s Nikkei and Hong Kong’s Hang Seng trading lower, though South Korea’s KOSPI managed modest gains.