Sensex Plunges Over 1,000 Points, Nifty Sheds 1.37% As Seven-Week Losing Streak Continues

Indian benchmark indices Sensex and Nifty fell sharply on Monday, extending their seven-week losing streak as rising crude oil prices and renewed geopolitical uncertainty weighed on investor sentiment.

At 11:05 am, the Sensex was trading around 72,888, down more than 1,007 points, or 1.36 per cent.

The Nifty 50 was down 1.37 per cent, or 317 points, at 22,823. Both indices slipped to levels near six-month lows.

The decline came after the benchmarks ended higher in the previous session on Friday. The Sensex had gained 315.20 points, or 0.43 per cent, to settle at 73,895.74, while the Nifty rose 77.40 points, or 0.34 per cent, to close at 23,140.50.

Why Is The Stock Market Down?

All 30 Sensex constituents were trading largely in negative territory on Monday. Bajaj Finance, Kotak Mahindra Bank, HDFC Bank, Bajaj Finserv, Hindustan Unilever, Mahindra & Mahindra, Larsen & Toubro and Bharat Electronics were among the major laggards.

A major pressure point for Indian equities was the sharp rise in crude oil prices. Brent crude, the global oil benchmark, was trading 2.27 per cent higher at $106.7 per barrel.

Higher crude prices are a concern for India, the world’s third-largest crude oil importer, as an increase in oil prices can raise the country’s import bill and add to inflationary pressures.

“Indian equity markets are likely to remain cautious as renewed geopolitical uncertainty and a rebound in crude oil prices weigh on investor sentiment,” PTI quoted Ponmudi R, CEO of Enrich Money, as saying.

He said US President Donald Trump’s rejection of Iran’s proposal to resolve the conflict and reopen the Strait of Hormuz had revived concerns about prolonged supply disruptions, making crude oil prices a key factor for global markets.

Asian Markets Also Under Pressure

Geopolitical uncertainty also weighed on several Asian markets on Monday.

South Korea’s KOSPI, Japan’s Nikkei 225 and Shanghai’s SSE Composite traded lower, while Hong Kong’s Hang Seng index was higher. US markets, meanwhile, ended in positive territory on Friday.

Foreign institutional investors (FIIs) continued to remain net sellers in Indian equities. According to exchange data, FIIs offloaded shares worth ₹3,693.93 crore on Friday.

The latest decline comes after Friday’s gains, when the Sensex rose 315.20 points and the Nifty gained 77.40 points. Monday’s sell-off has once again put the focus on crude prices, foreign fund flows and geopolitical developments as key factors influencing the Indian market.