Equity benchmarks were hit hard on Monday, with the Sensex falling 1,491 points amid extremely weak global markets and elevated oil prices triggered by the Russia-Ukraine conflict.
The 30-period BSE Sensex, which continued its downtrend for a fourth straight session, opened weak and fell 1,966.71 points, or 3.61%, to 52,367.10 on the day. Eventually, it managed to regain some of the lost ground and settled at 52,842.75, down 1,491.06 points, or 2.74%.
Similarly, the broader NSE Nifty lost 382.20 points, or 2.35%, to close at 15,863.15.
“The southward journey continues in the Indian equity market amid intense geopolitical tensions as rising crude oil prices spook investor sentiment in India.
“Higher crude oil prices are leading to rupee weakness, while relentless selling by FIIs is also putting pressure on our market,” said Parth Nyati, Founder of Tradingo.
Out of the 30-stock package, Indusind Bank, Axis Bank, Maruti Suzuki, Bajaj Finance, Bajaj Finserv, UltraTech Cement and Mahindra & Mahindra were the biggest detractors, falling to 7.63%.
In contrast, Bharti Airtel, HCL Technologies, Tata Steel and Infosys settled in the green area.
Among the BSE sector indices, real estate, banks, financials and auto ended with deep falls.
The stock exchanges in Hong Kong, Shanghai and Tokyo were listed significantly lower.
Stock exchanges in Europe also traded in negative territory in the afternoon session.
Meanwhile, international oil benchmark Brent rose 6.08% to $125.3 a barrel.
Overseas institutional investors continued their selling spree in Indian markets as they sold ₹7,631.02 crore of shares on a net basis, according to stock market data on Friday.
“This week’s focus is on the Russia-Ukraine conflict and its impact on oil prices. On the home front, investors will be watching the outcome of five state elections on March 10,” said Mohit Nigam, head of PMS, Hem Securities.