Noida, June 1 (APAC Media): Indian equity benchmarks ended sharply lower on Monday, with the Sensex tumbling more than 600 points and the Nifty slipping below the 23,400 mark, as escalating geopolitical tensions, rising crude oil prices and continued foreign fund outflows weighed on investor sentiment.
The broader market witnessed sustained selling pressure through the session, erasing early gains and pushing indices deeper into negative territory in afternoon trade.
The Indian rupee depreciated by 9 paise against the US dollar in early trade on Monday, weighed down by a sharp rise in global crude oil prices after escalating tensions between Israel and Lebanon.
Currency traders said the uptick in oil prices renewed concerns over India’s import bill, putting pressure on the domestic currency.
Market participants attributed the decline to heightened global risk aversion following escalating geopolitical tensions in the Middle East. Concerns surrounding Iran–US developments triggered caution across global equity markets, prompting investors to shift toward safe-haven assets.
Adding to the pressure was a firming trend in crude oil prices, which renewed inflation concerns for India, a major crude importer. Higher energy costs have raised fears of widening trade and fiscal deficits, potentially complicating the inflation outlook.
Foreign portfolio investors (FPIs) continued their selling streak, further weighing on domestic equities. Persistent outflows have remained a key drag on market performance in recent sessions.
Rising global bond yields also contributed to the decline, making debt instruments more attractive relative to equities and prompting portfolio reallocation by institutional investors.
Traders said that technical weakness compounded the fall, as a breach of key support levels triggered stop-loss selling and algorithm-driven liquidation across sectors.
All major sectoral indices ended in the red, with metal, IT, and financial stocks among the worst performers. Broader markets also mirrored the weakness, reflecting widespread risk-off sentiment.
Analysts said that while near-term volatility is likely to persist, domestic economic fundamentals remain stable.
However, they added that markets are expected to remain sensitive to global cues, crude oil movements, and foreign fund flows in the coming sessions.
The session underscored cautious sentiment across Dalal Street, with investors closely tracking international developments for further direction.
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.
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