Stock Market Today: Indian benchmark indices began the week with a sharp jolt as escalating tensions in the Middle East triggered a wave of global risk-off
sentiment. Benchmark indices opened deep in the red on Monday following a surge in crude oil prices above $115 per barrel, with the BSE Sensex plunging 1,793 points or 2.27 per cent to 77,125.44, while the Nifty 50 dropped 538 points or 2.20 per cent to 23,912.20 in early trade. About 553 stocks advanced, 2,121 declined, and 232 remained unchanged. Among the major losers on the Nifty were Shriram Finance, InterGlobe Aviation, Asian Paints, Larsen & Toubro, and Adani Ports and Special Economic Zone, while gainers included ONGC and Coal India. The market plunge came after global crude prices jumped sharply, with Brent crude climbing past $115 per barrel. Analysts warned that the sudden spike represents a significant oil shock for global markets and could reignite inflation concerns. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the spike in crude could have significant implications for oil-importing economies like India. “Brent crude has spiked above $115 delivering a big oil shock to economies and markets. Big oil importers like India will be hit hard if the West Asian conflict lingers long and crude price remains high. The market will price-in the economic consequences of this oil shock,” he said. Why Stock Market Is Falling? Crude oil prices jump past $115: One of the biggest triggers behind the market decline is the sharp spike in crude oil prices. Brent crude surged more than 26 per cent to around $117.16 per barrel, marking its highest level since 2022. The surge follows the ongoing US-Iran conflict and disruptions to shipping routes through the Strait of Hormuz, while several Middle Eastern producers have also reduced supplies. India is the world’s third-largest importer of crude oil and relies on imports for nearly 85–90 per cent of its needs. Economists estimate that every $1 rise in crude oil prices increases India’s import bill by roughly Rs 16,000 crore. When oil becomes more expensive, it tends to push up inflation, weaken the rupee, and widen the country’s current account deficit. Higher energy costs can also squeeze corporate margins and slow economic momentum. If oil prices remain elevated for a long period, the Reserve Bank of India (RBI) may be forced to adopt a more hawkish policy stance. Rupee hits an all-time low: The Indian rupee weakened significantly on Monday, touching a record low of 92.3375 against the US dollar. A falling rupee often triggers concern among investors because it can accelerate foreign capital outflows and make imports more expensive. This, in turn, increases inflation risks and puts pressure on corporate earnings. Ongoing geopolitical tensions: Another major concern for markets is the lack of any clear end to the conflict between Iran and the combined forces of the US and Israel. Mojtaba Khamenei, the son of the late Ayatollah Ali Khamenei, has been appointed Iran’s new supreme leader. Analysts see this development as an indication that Tehran is unlikely to soften its stance in the conflict. Meanwhile, media reports indicate that Iran’s foreign minister, Abbas Araghchi, has rejected calls for a ceasefire. The conflict has already pushed oil prices to multi-year highs. If tensions in the Middle East continue to escalate or drag on for an extended period, it could significantly impact India’s economic outlook and dampen investor sentiment.
