On Monday, Dalal Street turned negative as West Asia tensions intensified further. Consequently, rising oil prices triggered heavy selling across sectors.
Sensex and Nifty Witness Sharp Decline
The S&P BSE Sensex dropped 1,822.25 points and reached 72,710.71 by 10:30 am. Similarly, the NSE Nifty50 declined 533.30 points and touched 22,581.20.
Hormuz Warnings Raise Global Concerns
Meanwhile, the conflict entered its fourth week and escalated due to warnings around the Strait of Hormuz. Therefore, investors feared supply disruptions and prolonged energy shocks.
Global markets remained cautious as tensions between the US and Iran continued rising steadily. Moreover, any disruption in this route could impact a large share of global oil supply.
Oil Prices Surge and Impact Economy
Crude oil prices crossed $110 per barrel and sharply increased import costs for India. As a result, inflation risks increased while the current account deficit widened.
Furthermore, these developments weighed heavily on growth prospects and economic stability.
Rupee Hits Record Low
At the same time, the rupee slipped to record lows against the US dollar. Consequently, a weaker currency made already expensive imports even more costly.
Expert View on Market Sentiment
Dr. VK Vijayakumar from Geojit Investments highlighted uncertainty due to the ongoing conflict. He said markets reflect a global risk-off sentiment driven by unclear outcomes.
He added that the war has entered its fourth week and continues escalating steadily. However, responses around Hormuz have prevented panic in oil markets so far.
He further explained that uncertainty remains high and markets continue waiting for clear direction. Additionally, the risk-off mood has affected stocks, bonds, and precious metals together.
Broad-Based Selling Across Sectors
Back in India, investors turned cautious and triggered widespread selling across sectors. Notably, metal stocks declined sharply as the Nifty Metal index fell nearly 4%.
Similarly, PSU banks and consumer durables recorded significant losses during early trading hours. Moreover, financial stocks stayed under pressure while auto and realty sectors declined notably.
Midcap and Stock Performance
Midcap and smallcap indices also dropped close to 3%, reflecting broad-based selling trends. Among stocks, Tata Steel emerged as the worst performer, falling over 4%.
Additionally, Adani Ports, Bajaj Finance, Titan Company, and Bharat Electronics saw sharp declines in early trade. However, IT stocks showed resilience, with HCL Technologies and Tata Consultancy Services gaining.
Volatility Rises Sharply
Meanwhile, India VIX surged more than 14%, signalling rising uncertainty in the near term. Therefore, investors closely track global developments instead of domestic factors.
What Investors Should Watch
Currently, markets react mainly to global developments, especially the Iran conflict and oil price movements. Until clarity emerges, volatility will likely stay high and continue impacting investor sentiment and costs.
