Markets Plunge as Crude Prices Spike, Nifty Falls 582 Points, Sensex Dips 1,862 at Open
The Indian stock markets opened sharply lower on Monday, with both benchmark indices witnessing a steep decline amid a surge in crude oil prices and heavy selling across global markets.
The Nifty 50 opened at 23,868.05, down 582.40 points (-2.38%), while the BSE Sensex began the session at 77,056.75, dropping 1,862.15 points (-2.36%), reflecting strong selling pressure across multiple sectors.
The steep fall in domestic equities coincides with a roughly 25% spike in crude oil prices to USD 116 per barrel, triggered by ongoing geopolitical tensions in Asia, raising concerns over inflation and economic growth.
Market experts warned of the impact of rising crude prices on the Indian economy, given the country’s heavy reliance on imported oil.
Ajay Bagga, banking and market expert, “Indian markets are seeing a huge cut in stock futures represented by the Gift Nifty. The impact of high oil prices on India’s GDP, current account deficit, and inflation will be significant, as over 85% of our crude requirements are imported.”
He added that domestic fuel prices are expected to rise further. “Retail petrol and diesel prices will likely go up. Cooking gas prices were already increased last week, and jet fuel costs will also climb,” Bagga said.
According to him, several sectors will face pressure due to higher oil prices. “Sectors like paints, aviation, automobiles, tyres, chemicals, and other industries using oil derivatives will feel the impact. Given today’s liquidity squeeze, even sectors not directly linked to oil, including gold and silver, may see selling pressure,” he added.
Sectoral Performance
Heavy selling was observed across multiple NSE indices. PSU banks, media, and financial services stocks faced the most pressure. The Nifty Auto index fell 2.9%, Nifty Media declined 2.36%, PSU Bank index dropped 4%, Nifty IT fell 1.29%, Nifty FMCG lost 1.38%, and the Consumer Durables index slid 2%.
Technical View
Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, said, “The Nifty 50 had a weak week and breached the important 200-EMA, while a bearish EMA crossover indicates weakness in the trend. Heavy FII selling, a weakening rupee, and ongoing global tensions have hurt market sentiment.”
He added that a sustained breakout above 24,646 could signal bullish momentum, while a break below the current support zone may lead to further losses. The next crucial support is at 23,850.
Global Market Trend
The fall in Indian markets mirrored sharp declines across Asia. Japan’s Nikkei 225 dropped 7% to 52,010, South Korea’s KOSPI tumbled 7.43% to 5,169, Singapore’s Straits Times lost 2.65% to 4,720, Hong Kong’s Hang Seng fell 2.46% to 25,095, and Taiwan’s weighted index dropped 5.77% to 31,767.
Meanwhile, US markets ended last week under pressure, with the S&P 500 down 1.33% to 6,740 and the Nasdaq falling 1.53% to 22,400 on Friday. (Agency)
