Noida, June 8 (APAC Media): Indian equity benchmarks Sensex and Nifty ended sharply lower on Monday as selling pressure intensified across sectors, tracking weak global cues and persistent foreign fund outflows, dealers said.
The Sensex plunged over 700 points during the session, while the Nifty50 slipped below the 23,100 level, reflecting broad-based weakness in banking, IT and metal stocks.
Market participants said sentiment remained fragile amid concerns over global interest rate outlook, volatility in crude oil prices and continued geopolitical tensions, all of which weighed on risk appetite.
Foreign institutional investors continued to remain net sellers, adding pressure on domestic equities, while domestic institutional support provided only limited cushioning against the decline.
Analysts noted that a sharp rise in crude oil prices, driven by supply concerns from the Middle East, stoked fears of renewed inflationary pressures in import-dependent economies like India.
Brent, WTI Crude Oil Prices Jump Over 3% as Iran-Israel Conflict Escalates in Middle East
Global equity markets also traded lower, with Asian indices declining after a weak close on Wall Street, further amplifying negative sentiment in domestic markets.
Sectorally, selling was broad-based, with IT, financial services, realty and metal counters witnessing the steepest cuts, while defensive stocks showed relative resilience.
Experts said near-term volatility is likely to persist as investors monitor macroeconomic data, central bank policy signals and global risk factors.
Technical analysts observed that the Nifty50 has broken below a key support zone near 23,100, which could trigger further profit booking if recovery is not seen in the next few sessions.
Gold, Silver Prices Today: 24K, 22K Rates Fall, MCX Weakens as Israel-Iran Crisis Deepens
However, some value buying may emerge at lower levels in quality large-cap stocks as long-term fundamentals remain intact, they added.
Meanwhile, broader market participation remained weak, with mid-cap and small-cap indices also ending lower as investors preferred to stay on the sidelines amid heightened volatility and global uncertainty, dealers said.
Why Did Sensex Plunge Today?
Fresh escalation in the Iran-Israel conflict over the weekend emerged as a key trigger for the sharp sell-off in domestic equity markets on Monday, market participants said.
According to traders, renewed missile and drone exchanges between the two countries marked the first major escalation since a fragile ceasefire came into effect in early April, reviving concerns over a broader geopolitical flare-up. The heightened tensions weighed heavily on global risk sentiment and prompted investors to cut exposure to equities.
Adding to the pressure, international crude oil prices surged sharply, with Brent crude rising above the $98 per barrel mark and West Texas Intermediate (WTI) hovering around $94.4 per barrel.
The spike in oil prices was driven by fears of supply disruptions amid escalating hostilities in the Middle East, raising concerns over imported inflation for major oil-consuming economies such as India.
Adani Ports Wins 10-Year Marine Services Contract for Argentina LNG Export Project
Market experts said the rise in crude prices is likely to impact inflation expectations and corporate margins, particularly for sectors sensitive to energy costs, thereby dampening investor appetite for risk assets.
Sentiment was further hit by a sharp decline in US equities on Friday, which spilt over into Asian and domestic markets. Stronger-than-expected US jobs data fuelled expectations that the Federal Reserve may maintain higher interest rates for an extended period or potentially consider further tightening.
The combination of persistent high interest rates in the US and elevated inflation risks added to global uncertainty, triggering a broad-based risk-off mood across equity markets.
Traders noted that the confluence of geopolitical tensions, rising crude oil prices and weak global cues significantly impacted investor sentiment, leading to heavy selling across sectors in domestic markets during the trading session.
Overall, analysts said global macroeconomic and geopolitical developments are expected to continue driving volatility in the near term, with investors closely tracking oil price movements, central bank commentary and developments in the Middle East conflict.
–ENDS–
Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
Also Read:
