Noida, Sep 28 (APAC Media): Indian equity markets BSE Sensex and NSE Nifty came under heavy selling pressure on Monday, with the Sensex plunging more than 1,000 points and the Nifty falling below the 23,000 mark as rising crude oil prices, geopolitical uncertainty and continued foreign investor selling weighed on market sentiment.
The 30-share BSE Sensex opened lower and extended its losses during the session, while the Nifty 50 breached the psychologically important 23,000 level.
The sell-off came after both benchmark indices recorded their seventh consecutive weekly decline, reflecting continued caution among investors.
A sharp rise in crude oil prices emerged as one of the major concerns for the domestic market. Brent crude climbed around 1.9% to about $103 a barrel amid uncertainty over US-Iran negotiations and the situation around the strategically important Strait of Hormuz.
Higher oil prices are particularly significant for India, which relies heavily on imports to meet its crude oil requirements. A prolonged increase in energy prices could raise the country’s import bill and put pressure on the rupee, inflation and corporate profitability.
Foreign investor selling added to the pressure on domestic equities, with provisional data showing that foreign investors were net sellers of Indian shares worth around ₹3,693.96 crore on Friday. Sustained foreign fund outflows have remained a key concern for the Indian stock market in recent weeks.
“Globally, developments around US-Iran diplomacy and crude oil prices will remain critical,” Ajit Mishra, SVP-Research at Religare Broking, said. He added that progress towards a framework for reopening the Strait of Hormuz could ease energy prices and provide some relief to India’s import bill and the rupee. Renewed geopolitical tensions, however, could keep volatility elevated, he said.
Global bond yields are another factor investors are monitoring. Higher US Treasury yields can make dollar-denominated assets relatively more attractive and potentially affect capital flows towards emerging markets.
The rupee also opened weaker on Monday at 95.86 against the US dollar, compared with Friday’s close of 95.82.
Ponmudi R, CEO of Enrich Money, said oil-related dollar demand and continued foreign investor outflows could keep pressure on the currency, while intervention by the Reserve Bank of India has helped contain excessive volatility.
Banking and financial stocks were among those facing selling pressure, while broader market indices also declined.
Investors are now watching crude oil prices, developments in West Asia, foreign fund flows, movements in the rupee and global bond yields for further direction.
The market decline reflected a combination of global and domestic pressures, with investors weighing geopolitical risks, higher energy costs, currency weakness and tighter global financial conditions.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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