Sensex plunges over 900 points as oil spike, Iran tensions rattle Indian markets

Indian benchmark indices opened sharply lower on Monday, tracking a surge in global crude oil prices and rising geopolitical tensions after the United States and Iran failed to agree on a peace proposal, reviving fears of supply disruptions in West Asia.

The 30-share BSE Sensex fell 927.32 points, or 1.20 per cent, to 76,400.87 in early trade after opening at 76,638.09, while the Nifty 50 dropped 268.60 points, or 1.11 per cent, to 23,907.55.

The selloff came after Brent crude prices jumped about 3.5 per cent to around $105 a barrel following remarks by US President Donald Trump, who described Iran’s response to Washington’s peace proposal as “unacceptable”, dimming hopes of a diplomatic breakthrough.

Higher oil prices are a major concern for India, the world’s third-largest oil importer, as they widen the trade deficit, stoke inflation and raise input costs for companies across sectors.

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Broader market sentiment also remained weak after foreign institutional investors (FIIs) continued their selling streak. FIIs sold Indian equities worth Rs 4,111 crore on Friday, while domestic institutional investors (DIIs) remained net buyers for the eleventh consecutive session, pumping in Rs 6,748 crore.

Financials, autos and consumer stocks led the decline in Monday’s trade. Shares of Titan Company slumped nearly 6 per cent, emerging as the top loser on the Sensex amid concerns that rising gold prices and weaker discretionary demand could hurt jewellery sales.

State-run lender State Bank of India fell more than 3 per cent, while aviation major InterGlobe Aviation, which operates the IndiGo brand, declined nearly 4 per cent as soaring fuel prices threatened to increase operating costs.

Auto makers also remained under pressure, with Mahindra & Mahindra down over 2 per cent and Maruti Suzuki India shedding around 1.7 per cent.

Banking heavyweight HDFC Bank slipped 1.3 per cent, while Reliance Industries fell about 1 per cent.

Only a handful of stocks managed gains in an otherwise weak market. Tata Consumer Products rose nearly 4 per cent after the company projected double-digit revenue growth for fiscal 2027 and reported quarterly earnings above estimates, aided by steady demand for staples such as tea and salt.

Healthcare names showed relative resilience, with Sun Pharmaceutical Industries and Apollo Hospitals Enterprise trading marginally higher.

Among other earnings-driven moves, Bank of Baroda remained in focus after posting an 11 per cent year-on-year rise in net profit with stable asset quality metrics. Hyundai Motor India also drew attention after reporting a smaller-than-expected decline in fourth-quarter profit, supported by strong demand for sport utility vehicles.