Indian stock markets opened sharply lower on Monday as rising crude oil prices and weak global cues triggered broad-based selling across sectors. Benchmark indices declined more than 1 per cent in early trade, with investors turning cautious amid growing geopolitical tensions in West Asia and pressure on emerging markets.
The BSE Sensex slipped nearly 900 points to around 74,339, while the Nifty 50 dropped below the 23,400 mark to trade near 23,363. Broader market indices also remained under pressure, reflecting weak investor sentiment across segments.
Banking and financial stocks led the losses. The Nifty Bank index fell over 1.3 per cent, while financial services, PSU banks, realty, media, auto, and metal shares also witnessed significant selling pressure. Midcap and smallcap stocks traded lower as risk appetite weakened further.
Meanwhile, defensive sectors such as IT, pharma, and healthcare showed relative resilience during the market decline. Analysts believe export-oriented sectors may remain stable due to currency movements and uncertainty surrounding global crude prices.
Volatility also increased sharply, with India VIX rising nearly 3 per cent, indicating nervousness among traders and investors.
A major trigger behind the sell-off was the sharp jump in Brent crude oil prices, which crossed $111 per barrel. Rising oil prices are considered a major concern for India because the country depends heavily on crude imports. Higher fuel costs can increase inflation, weaken the rupee, and hurt corporate profitability.
Market experts warned that sustained crude price pressure could lead to further fuel price hikes and additional foreign investor selling in emerging markets like India.