Indian equity markets saw red Monday morning, with the benchmark Sensex bleeding over 1,000 points to an intraday low of 72,855.76 as surging global crude oil prices spooked investors.
The Nifty 50 shed over 320 points from Friday’s close to hit a morning low of 22,819.65.
Both benchmark indices sank to near six-month lows, extending their seven-week losing streak, wiping out close to 6 per cent of their total value.
The slump was primarily due to Brent crude futures skyrocketing by around 2.3 per cent to $106.7 per barrel. And all of these occurred after US President Donald Trump rejected an Iranian proposal aimed at reopening the Strait of Hormuz and ceasing hostilities. Iran doubled down on a diplomatic resolution to the conflict with the US and Israel, but the standstill stoked fears of lengthy supply chain disruptions through the Middle Eastern shipping route.
Adding to crude pressure were sustained FII outflows and a broader weakness across Asian peers. KOSPI, Nikkei 225, and SSE Composite all traded in the red. Only the Hang Seng Index traded upward.
Back in India, FIIs offloaded equities worth ₹3,693.93 crore on Friday, which meant domestic liquidity was further squeezed.
All 16 major sectors logged losses, with small-cap and mid-cap indices slipping by close to 1.5 per cent each. All 30 Sensex firms traded in the red initially, with BEL, HDFC Bank, Hindustan Unilever, Larsen & Toubro, and Adani Ports being the biggest losers in the morning session.
