Sensex slumps over 750 points, Nifty falls below 23,150 as oil surge and global selloff rattle markets

Indian equity benchmarks opened sharply lower on Monday, tracking a broad-based selloff across Asian markets as escalating tensions in West Asia, a spike in crude oil prices, and growing expectations of a US Federal Reserve rate hike dented investor sentiment.

The BSE Sensex was trading at 73,489.99, down 753.35 points or 1.01 per cent, at 9:22 am, after opening at 73,421.61. The index touched an intraday high of 73,533.67 and a low of 73,318.94 in early trade.

The Nifty 50 slipped 226.45 points or 0.97 per cent to 23,140.25, after opening at 23,080.70. The benchmark briefly hit an intraday low of 23,070.15, reflecting heavy selling pressure across sectors.

Global risk-off mood hits Indian equities

The weakness in domestic markets mirrored a sharp decline across Asia after oil prices jumped following Iran's missile strikes on Israel. Investors also grappled with the prospect of tighter US monetary policy after stronger-than-expected US jobs data boosted expectations that the Federal Reserve could raise interest rates before the end of 2026.

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According to Reuters, Brent crude futures surged around 3.5 per cent to approximately $96.5 per barrel, fuelling concerns about inflation and potential disruptions to global energy supplies.

The broader MSCI Asia ex-Japan index dropped nearly 2.7 per cent, while South Korea's KOSPI and Japan's Nikkei suffered steep losses amid a selloff in technology and AI-related stocks that had powered recent market gains.

Higher US interest rates generally reduce the attractiveness of emerging-market assets, including Indian equities, prompting foreign investors to trim risk exposure.

Financials, IT stocks lead declines

Selling was widespread, with 44 of the 50 Nifty constituents trading in the red, while only six stocks advanced.

Among Sensex stocks, Tata Steel emerged as the biggest loser, falling more than 2 per cent. Other major laggards included Mahindra & Mahindra, TCS, Eternal, IndiGo, Asian Paints, Bajaj Finance, Infosys, HCLTech, Larsen & Toubro, and Reliance Industries.

Technology shares remained under pressure as investors dumped global AI-linked stocks. Wipro was among the worst performers on the Nifty, declining nearly 5 per cent, while TCS, Infosys, Tech Mahindra, and HCLTech also posted significant losses.

Financial stocks, which carry the highest weightage in benchmark indices, added to the drag. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Bajaj Finserv all traded lower.

Pharma stocks offer some support

The few pockets of strength were concentrated in defensive sectors. Sun Pharma rose around 0.8 per cent, emerging as the top gainer on both the Sensex and Nifty. Other pharmaceutical stocks such as Dr Reddy's Laboratories, Apollo Hospitals, and Cipla also traded in positive territory as investors sought refuge in defensive counters.

Axis Bank was among the handful of financial stocks managing modest gains in early trade.

Broader markets also under pressure

The risk-off sentiment extended beyond benchmark indices. Reuters reported that Nifty mid-cap and small-cap indices fell around 1.3 per cent and 1.2 per cent respectively, indicating broad-based selling across the market.

All major sectoral indices opened in the red, with the sharpest declines seen in information technology and financial services.