Stock Market
Market crash! Sensex nosedives 1,000 points, Nifty below 23,400 as oil spikes
Mumbai/IBNS: The Indian stock market on Monday witnessed a massive selloff with the BSE Sensex plunging over 1,000 points while the NSE Nifty 50 slipped below the 23,400 mark during the opening hour, media reports said.
Though the Sensex later recovered marginally, it was still trading sharply lower by 800-900 points in morning trade.
Nifty continued to hover around the 23,400 range as investor sentiment remained severely impacted by surging crude oil prices and escalating geopolitical tensions in West Asia.
Crude Oil Prices Spike
Global crude oil prices crossed the $110-per-barrel mark amid the continuing Iran war and fears over potential disruption in Middle East oil supplies.
Market experts believe investors are particularly worried about any prolonged disruption in the Strait of Hormuz, one of the world's most crucial oil transit routes.
Foreign Investors Continue Pulling Out
Foreign institutional investors (FIIs) have remained cautious amid the global uncertainty.
More than Rs. 27,000 crore has reportedly been withdrawn from Indian equities so far this month as overseas investors continue shifting funds away from emerging markets.
Why Markets Are Under Pressure
The ongoing Iran conflict has increased volatility across global stock markets by triggering:
- oil price uncertainty
- inflation fears
- geopolitical risks
- concerns over slower global economic growth.
For India, rising crude prices remain a major concern as the country imports a significant portion of its oil requirements.
Sectors Under Pressure
Sectors heavily dependent on crude oil and transportation costs witnessed strong selling pressure, including:
- aviation
- paints
- FMCG
- tyres
- logistics stocks
Meanwhile, investors are increasingly moving towards safer assets amid fears of further escalation in the Middle East conflict.
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