Mumbai: Indian equity markets witnessed a steep decline at the start of trading on Monday, with benchmark indices plunging sharply amid a surge in global crude oil prices and widespread selling across international markets.
The Nifty 50 opened at 23,868.05, dropping 582.40 points, or 2.38 percent, in early trade. Meanwhile, the BSE Sensex began the session at 77,056.75, registering a sharp fall of 1,862.15 points, equivalent to a 2.36 percent decline. The steep losses reflected intense selling pressure across multiple sectors in the market.
Market sentiment weakened significantly after crude oil prices jumped nearly 25 percent, reaching about USD 116 per barrel. The spike comes against the backdrop of escalating geopolitical tensions in Asia, raising concerns about rising inflation and slower economic growth worldwide.
Analysts believe the increase in oil prices could have a major impact on India’s economy, which relies heavily on imported crude to meet its energy needs. Higher oil prices typically lead to increased costs across industries and can place additional pressure on inflation and the country’s external balance.
Several sectors that depend heavily on petroleum-based inputs may face additional pressure. Industries such as paints, aviation, automobiles, tyres, and chemicals are particularly vulnerable because of their reliance on oil derivatives.
With global uncertainty continuing to weigh on investor sentiment, market participants are expected to closely monitor crude price movements and geopolitical developments in the coming days.
