Indian benchmark indices opened sharply lower on Monday, with the BSE Sensex plunging over 914 points and the NSE Nifty slipping 278 points, as crude oil prices surged past the USD 120 per barrel mark for the first time since 2014. The surge in crude prices raised concerns over rising inflation and its impact on the economy.
Market Performance
The 30-share BSE Sensex fell 914.26 points to 55,166.79 in early trade, while the broader NSE Nifty declined 278.35 points to 16,528.70. Selling pressure was broad-based, with all sectoral indices trading in the red. Metal, oil and gas, and banking stocks were among the worst hit.
Crude Oil Impact
Brent crude futures rose to USD 120.45 a barrel, the highest since 2014, after the United States and European allies considered banning Russian oil imports over the Ukraine conflict. The rally in crude prices is expected to widen India's trade deficit, increase inflation, and put pressure on the rupee.
Investor Sentiment
Investors turned risk-averse amid geopolitical tensions and rising commodity prices. Foreign institutional investors have been net sellers in Indian equities, adding to the selling pressure. Analysts expect the market to remain volatile in the near term.
Global Cues
Asian markets also traded lower, tracking overnight losses on Wall Street. Japan's Nikkei fell 2.5%, while Hong Kong's Hang Seng dropped 3%. The sell-off was driven by fears that rising oil prices could slow global economic growth.
Expert View
Market experts advise investors to remain cautious and avoid panic selling. They recommend focusing on fundamentally strong stocks and sectors that are less impacted by rising input costs. Some analysts see this correction as a buying opportunity for long-term investors.
