Markets fell for the third straight session on Monday, tracking weak global cues as Brent crude oil prices soared by 5% to touch $106 a barrel after US President Donald Trump rejected Iran’s response to the peace proposal. On the domestic front, Prime Minister Narendra Modi’s remarks on fuel conservation, deferring non-essential gold purchases, and curtailing foreign travel to conserve foreign exchange further weakened investor sentiment.
Starting the week on a weak note, the Sensex crashed 1,312.91 points, or 1.70%, to close at 76,015.28, while the Nifty slumped 360.30 points, or 1.49%, to settle below the 24,000-mark at 23,815.85. Both the Sensex and the Nifty recorded their steepest single-day fall of the current fiscal so far and emerged as the worst performers among major Asian equity indices on Monday.
Broader indices outperformed the benchmarks, with the BSE Midcap and BSE Smallcap declining 1.28% and 1.05%, respectively.
Investors suffered a notional loss of Rs 6.16 lakh crore as the total market capitalisation of BSE-listed companies fell to Rs 467.31 lakh crore.
The India VIX Index surged 10.16% to 18.55, indicating a rise in market volatility.
Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services, said Indian equities are expected to remain cautious in the near term amid escalating geopolitical tensions, with stock- and sector-specific action likely to continue alongside the final leg of the Q4FY26 earnings season.
Elevated crude oil prices, rupee weakness and sustained selling by foreign portfolio investors (FPIs) are expected to keep the overall market sentiment subdued, he added.
“The sharp correction was primarily triggered by a spike in crude oil prices following renewed geopolitical tensions surrounding the US-Iran situation after the US President expressed dissatisfaction over Iran’s peace proposal,” said Ajit Mishra, SVP – research, Religare Broking. Back home, the sentiment was further dented by the PM’s remarks, which raised concerns over growth moderation and external sector stress, he added.
The overall market breadth remained negative, with 2,892 losers against 1,457 gainers on the BSE.
Consumer durables, realty, PSU banks, oil & gas and auto were the top sectoral losers, while healthcare, pharma and FMCG indices managed modest gains.
Titan Company, InterGlobe Aviation (IndiGo), SBI, Bharti Airtel and Eternal were the top Sensex losers. Titan and IndiGo came under selling pressure after the PM’s remarks on austerity measures amid the West Asia crisis.
Reliance Industries contributed 272 points or one-fifth of Sensex’s 1,312 points decline. HDFC Bank, Bharti Airtel, SBI and Titan Company added another 667 points or 50% fall.
Continuing their selling spree, FPIs sold shares worth Rs 8,437.56 crore ($885.3 million), while domestic institutional investors purchased shares worth Rs 5,936.65 crore, according to provisional BSE data.
Across Asia, besides India, Indonesia, Thailand and Japan were among the top losers, while South Korea, China and Taiwan emerged as the top gainers.