Sensex, Nifty Slide on Global Tensions
Mumbai: The Indian stock market witnessed a sharp decline on Monday, the first trading day of the week. Global tensions and a surge in crude oil prices led to a sharp decline. The BSE Sensex opened at 76,134, down nearly 1,400 points, while the Nifty 50 fell nearly 480 points to 23,571.
The market decline was driven by a surge in Brent crude oil prices, which crossed $101 per barrel. Tensions between the United States and Iran have escalated following the failure of peace talks. Reports of the US's planned naval blockade of Iranian ports and Israel's renewed offensive fueled investor concern.
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All sectors in the market opened in the red on Monday. The Nifty PSU Bank and Realty indices fell by more than 3%. Meanwhile, auto, banking, financial services, media, consumer durables, and oil and gas sectors saw declines of more than 2%. This clearly indicates that the decline was widespread and affected almost all sectors.
Individual stocks, Indigo shares fell by more than 6%. Jyoti CNC shares fell by 11% in early trading. Due to investor panic, several mid-cap and small-cap stocks also witnessed heavy selling.
In the broader market, the Nifty Midcap 100 index fell 2.28%, while the Nifty Smallcap 100 index declined 2.60%. This indicates that not only large companies, but also small and medium-sized stocks are under pressure.
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The Indian rupee also came under pressure along with the stock market decline. On Monday, the rupee fell 57 paise to 93.30 against the US dollar. Earlier on Friday, it had closed at 92.73.
Experts believe that global tensions and fluctuations in crude oil prices may cause market volatility in the near future. Therefore, investors are advised to remain cautious and invest wisely.
