- Indian equity markets declined amid West Asia tensions, oil price rises.
- Geopolitical escalation between US and Iran rattled investor sentiment broadly.
- PSU banks led sectoral losses, while IT stocks provided support.
Indian equity benchmarks remained under pressure through Monday’s session, with selling intensifying across banking and broader market stocks as investors reacted to escalating tensions in West Asia and rising crude oil prices.
The Nifty 50 slipped below the 23,400 mark, shedding more than 150 points, while the Sensex declined nearly 0.7 per cent, bleeding more than 500 points to close under 74,270.
The weakness was more pronounced in the banking space, with the Bank Nifty falling more than 1 per cent. Market volatility also picked up, with the India VIX climbing close to 4 per cent during the session, reflecting growing investor caution.
Geopolitical Developments Rattle Investor Sentiment
Market sentiment remained fragile amid fresh developments in the US-Iran conflict over the weekend.
According to reports, US forces targeted Iranian radar and drone command-and-control facilities in Goruk and Qeshm Island. In response, Iran’s Islamic Revolutionary Guard Corps reportedly launched strikes against an airbase used by US forces.
The latest escalation has heightened concerns over the possibility of a prolonged conflict in the region, prompting investors to reduce risk exposure.
Also Read : Chotu Cylinder Gets Costlier Again: 5-Kg LPG Price Hiked For Third Time Since West Asia Crisis
Crude Oil Gains Add To Market Concerns
Adding to the pressure, crude oil prices moved higher as geopolitical tensions threatened to disrupt energy supplies.
Brent crude traded around $93.3 per barrel, raising concerns for import-dependent economies such as India. Higher oil prices can increase the country’s import bill, put pressure on the rupee, and fuel inflationary risks, all of which could weigh on economic growth and corporate profitability.
The rise in energy prices also dampened sentiment in rate-sensitive and consumption-focused sectors.
PSU Banks Among Biggest Losers
Selling was widespread across sectoral indices, with PSU banking stocks emerging as the biggest laggards. The Nifty Financial Services Ex-Bank index declined more than 2 per cent, dragging the broader financial space lower.
Broader markets also witnessed profit-booking. The Nifty Midcap 100 index fell around 1.4 per cent, while the Nifty Smallcap index slipped nearly 0.8 per cent, signalling weakness beyond frontline counters.
Also Read : Crude Oil Prices Jump Over 3% As Fresh US-Iran Strikes Renew Supply Fears
IT Stocks Buck The Trend
Despite the broad-based sell-off, information technology stocks provided some support to the market.
The Nifty IT index emerged as the top sectoral gainer, aided by positive global cues. Investor sentiment towards technology shares improved after strong earnings from US-based cloud software company Snowflake boosted optimism around demand trends in the sector.
