Indian stock indices finished Monday’s trade with steep losses, as climbing oil prices, mounting West Asia tensions, higher international bond yields and persistent foreign investor selling unsettled the market.
The Sensex closed at 72,771.72, down 1,124.02 points, or 1.52 per cent. The Nifty ended at 22,780.25 after losing 360.25 points, or 1.56 per cent. Declines spread across large-, mid- and small-cap shares.
Tata Motors Passenger Vehicles, Power Grid and Jio Financial Services recorded some of the Nifty’s sharpest falls. The Nifty MidCap 100 slipped 1.63 per cent, and the Nifty SmallCap 100 finished 1.85 per cent lower.
Market participants feared that continued fighting in West Asia could interrupt international energy supplies and add to inflationary pressures.
Caution deepened after US President Donald Trump turned down an Iranian proposal to reopen the Strait of Hormuz and reduce hostilities.
The unease extended to other Asian exchanges. South Korea’s market lost nearly 2 per cent, Japan’s Nikkei fell 0.10 per cent, and Chinese shares declined by more than 1 per cent.
Oil prices moved higher, with Brent futures advancing 2.2 per cent to $106.60 per barrel.
US West Texas Intermediate crude rose 1.45 per cent to $93.76.
As a major crude importer, India faces inflation and economic risks when energy prices remain elevated.
Higher yields on global bonds further dampened appetite for riskier assets.
The yield on US two-year Treasury notes climbed five basis points to 4.90 per cent, while the 10-year benchmark increased four basis points to 5.20 per cent.
Overseas investors continued to withdraw funds from Indian equities.
After net purchases in July and August, foreign portfolio investors became net sellers in September.
NSDL figures showed that they had offloaded shares worth Rs 17,131 crore so far this month, bringing their year-to-date net sales to Rs 2.41 trillion.
The rupee weakened, slipping 0.19 per cent to 96.00 as a stronger dollar and costly crude added pressure.
Also Read: Stock Market Today: Sensex Falls 161 Points, Nifty Opens 0.33% Lower
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