The Indian stock market extended its losing streak for the third straight session on Monday, with benchmark indices witnessing heavy selling pressure amid weak global signals, rising crude oil prices and concerns linked to the ongoing West Asia crisis.
The 30-share BSE Sensex plunged 1,313 points, or 1.70 per cent, to close at 76,015.28, while the Nifty 50 dropped 1.50 per cent to settle at 23,815.85, per a report by Mint.
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Broader markets also remained under pressure, with the BSE Midcap and Smallcap indices ending lower. The total market capitalisation of BSE-listed companies fell by more than ₹6 lakh crore in a single session.
US-Iran tensions weigh on sentiment
One of the biggest triggers behind the selloff was the worsening geopolitical situation in West Asia. Hopes of a possible breakthrough in US-Iran talks weakened after US President Donald Trump reportedly rejected Iran’s peace proposal.
Markets remained concerned about disruptions in oil supply through the Strait of Hormuz, which has kept crude oil prices elevated for weeks.
Crude oil surge and rupee weakness
Brent crude prices climbed over 4 per cent and crossed the $105-per-barrel mark as fears over restricted oil supply intensified, Mint reported.
Higher oil prices are seen as a major concern for India, which imports most of its crude oil requirements. Rising crude costs also add pressure on inflation and corporate profitability.
At the same time, the Indian rupee weakened sharply, opening 40 paise lower at 94.88 against the US dollar. Analysts cited by Mint believe rupee weakness could lead to higher foreign capital outflows and tighter monetary conditions.
PM Modi's austerity appeal
Some market experts also linked the fall to Prime Minister Narendra Modi’s recent appeal for austerity measures amid the global energy crisis.
"I think the market today has been impacted more by Prime Minister Narendra Modi's austerity call than by the non-resolution of the Iran crisis. The Prime Minister urged people to cut down on the consumption of petrol, diesel, gold and even foreign travel. In brief, it is an austerity call," VK Vijayakumar of Geojit Investments was quoted as saying by Mint.
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Analysts cited in the report also pointed to technical weakness after Nifty slipped below the key 24,000 level. Market experts said the index now faces crucial support around 23,800 while resistance remains near 24,400.
