Rising geopolitical tensions and a spike in oil prices triggered a sharp sell-off in early trade, with investors turning cautious amid growing global uncertainty.
File Photo: IANS
The stock market opened the week on a sharply weak note on Monday, with investors turning cautious as tensions in West Asia showed no signs of easing.
The sell-off deepened quickly after the opening bell. The Sensex slipped over 1,500 points in early trade, while the Nifty dropped more than 2 per cent, as selling spread across sectors.
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The trigger was clear. Fresh escalation fears in the ongoing US-Iran conflict, now stretching into its fourth week, have pushed investors into a risk-off mode globally.
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There was hardly any pocket of strength. Metal, PSU bank and auto stocks led the fall, with several heavyweights trading in the red. Stocks such as Tata Steel, Hindalco Industries, HDFC Bank, JSW Steel and Bajaj Finance were among the major laggards.
Analysts said the market mood remains fragile, with global cues firmly negative.
Crude prices have moved higher again, with Brent trading close to $113 per barrel and US crude also gaining. The rise has added to concerns over inflation and potential pressure on economic growth.
What’s happening around the Strait of Hormuz, a key oil lifeline, has added to the anxiety, with reports of movement being restricted for some vessels.
Market participants say investors are moving away from riskier assets amid rising uncertainty.
Foreign institutional investors continued to remain net sellers, offloading equities worth over ₹5,500 crore in the previous session, adding to the pressure on domestic markets.
Experts say the current phase is being driven by both geopolitical risks and weak global signals.
The weakness wasn’t limited to India. Asian markets saw sharp declines, with Japan’s Nikkei falling around 5 per cent, Hong Kong’s Hang Seng dropping over 3 per cent, and South Korea’s Kospi plunging nearly 6 per cent.
US markets had also ended lower in the previous session, setting a weak tone for the week.
For now, traders say markets are likely to remain volatile, with global developments, particularly in West Asia, expected to dictate the near-term direction.
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