Dalal Street ended Monday on a weak note after a volatile trading session, as global tensions and rising crude oil prices triggered heavy selling across sectors.
The BSE Sensex closed at 77,566.16, down 1,352.74 points or 1.71%, while the Nifty 50 settled at 24,028.05, falling 422.40 points. Markets had plunged nearly 3% in during the trading session, wiping out over Rs 13 lakh crore in investor wealth at one point before recovering some losses toward the closing bell.
The sell-off was largely broad-based, with banking, auto, metals and capital goods stocks among the worst hit.
Among major Nifty50 losers, Mahindra & Mahindra dropped 4.44%, Maruti Suzuki fell 4.67%, Bajaj Auto declined 4.29%, and UltraTech Cement slipped 5.25%. Kotak Mahindra Bank, ONGC, Tata Steel and Adani Ports also fell over 3%, reflecting widespread weakness across sectors.
However, a few heavyweight stocks provided some support to the market. Reliance Industries gained nearly 1%, while Infosys, Wipro and HCLTech ended in the green, helping indices recover part of their intraday losses.
WHAT TRIGGERED TODAY’S SELL-OFF?
The sharp decline in the market was largely driven by rising geopolitical tensions in the Middle East, which have heightened fears of supply disruptions and economic uncertainty.
Vinod Nair, Head of Research at Geojit Investments Limited, said the escalation of the conflict has added to investor anxiety.
“Selling intensified as the Middle East conflict entered its second week with no signs of de-escalation. The sustained rise in crude prices is likely to complicate the RBI’s policy outlook by keeping inflation elevated and posing risks to growth,” Nair said.
He added that concerns in the United States about potential caps on redemptions in certain funds also contributed to the sell-off in global markets.
“Despite this, the current phase may offer opportunities for long-term investors. Selective value buying in pharma and IT helped limit deeper losses and indicated a defensive stance amid a weakening rupee in the short term,” he said.
OIL PRICES ARE SURGING
Another key factor behind the market decline is the sharp rise in crude oil prices.
Oil prices have surged above $110 per barrel amid fears that the ongoing conflict in West Asia could disrupt supply routes and tighten global availability.
For India, which imports nearly 85% of its crude oil, rising oil prices can increase the country’s import bill and push up inflation.
Higher crude prices also tend to weaken the rupee and raise concerns about interest rates, which often weighs on equity markets.
WILL MARKETS RECOVER TOMORROW?
Despite the sharp fall earlier in the day, markets managed to recover some of their losses by the closing bell, indicating that some investors stepped in to buy stocks at lower levels.
However, analysts warn that volatility could remain high in the near term as investors continue to monitor geopolitical developments and movements in crude oil prices.
If tensions escalate further or oil prices continue to rise, markets could remain under pressure. But if global cues stabilise and crude prices cool off, Dalal Street may see a short-term bounce.
For now, investors are likely to remain cautious as they wait for clearer signals from global markets and geopolitical developments.
