New Delhi, India, September 28: Stock markets in the country witnessed sharp selling on Monday, with both benchmark indices falling more than 1.5% as rising crude oil prices, elevated U.S. bond yields and a weakening rupee heightened concerns over inflation and global fund flows.
The Nifty 50 closed at 22,780.25, declining 360.25 points, or 1.56%, while the BSE Sensex ended at 72,771.72, down 1,124.02 points, or 1.52%.
The sell-off was broad-based, with almost all sectoral indices on the NSE closing in the red. The Nifty PSU Bank index was among the worst hit, plunging more than 3.20%. Nifty Metal declined 1.90%, Nifty Oil and Gas fell 1.97%, while Nifty Realty lost 2.32%.
Nifty Auto declined 1.74%, Nifty FMCG fell 1.38%, and Nifty IT slipped 0.09% by the close.
Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said the sharp sell-off reflected a combination of global macroeconomic pressures rather than purely domestic weakness.
“With Brent crude moving above $106, U.S. 10-year yields near 5.2% and the rupee weakening toward Rs. 96 per dollar, concerns around inflation, import costs and emerging-market flows have intensified,” Kasat said.
Brent crude prices surged more than 3% on Monday to $107.88 per barrel at the time of reporting, adding to concerns over higher energy costs for oil-importing economies such as India.
Kasat said a sustained rise in crude prices or further foreign institutional investor outflows could keep market volatility elevated. At the same time, any easing in U.S.-Iran tensions, crude prices or bond yields could provide room for stabilization.
He added that investors should remain selective and focus on earnings visibility and balance-sheet strength.
The pressure was also visible among individual stocks, with only Dr. Reddy’s and Infosys emerging as gainers in the Nifty 50 pack. Jio Finance, Adani Enterprises, TMPV, Tata Consumer and Bajaj Auto were among the top losers.
Commodity markets also witnessed weakness. Gold prices declined more than 2.5% to Rs. 1,47,100 per 10 grams for 24-karat gold at the time of reporting, while silver prices fell 3.25% to Rs. 2,26,988 per kilogram.
N.S. Ramaswamy, Head of Commodity & CRM at Ventura, said Brent crude November futures had moved back above $106 per barrel amid renewed concerns over prolonged disruptions to oil supplies from the Middle East.
He said, “Market sentiment has been supported by uncertainty around the Strait of Hormuz after U.S. President Donald Trump rejected Iran’s proposal to reopen the key shipping route, while Iran continues to await a clear U.S. response. Meanwhile, tensions between Saudi Arabia and the Houthis remain elevated, with Saudi Arabia intercepting drones amid renewed security concerns.”
On crude prices, Ramaswamy said the immediate resistance was placed at $108-$109 per barrel. A sustained break above this zone could open the way toward $112 and $115, while immediate support was seen at $104, $101 and $97.
Asian markets were mixed. Japan’s Nikkei 225 declined 0.20% to close at 66,230, while South Korea’s KOSPI fell sharply by 2.77% to 6,889. Singapore’s Straits Times rose 0.31% to 5,729, while Hong Kong’s Hang Seng gained 0.47% to close at 24,626. (ANI)
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