Indian stock markets experienced a significant decline on Monday, with the Sensex dropping 1,836 points and the Nifty falling by 2.6%. Analysts noted a bearish market structure with lower highs and lower lows, indicating strong downward momentum. Geopolitical uncertainty in the Middle East led to heavy selling across various sectors.
Market volatility surged as the India VIX rose over 17% to close at 26.73. The broader markets witnessed deeper losses compared to benchmark indices, with the Nifty MidCap index declining by 3.69% and the Nifty SmallCap index falling by 4.16%. Construction-related stocks were among the worst hit, with the Nifty Construction Durable index dropping over 5%.
Amid escalating tensions between the US and Iran, crude oil prices surged, with Brent crude reaching $108.73 per barrel. Concerns over energy security and inflation rose, leading to increased caution among investors and a sharp sell-off in equities. Prime Minister Narendra Modi assured continuous efforts to maintain uninterrupted energy supply through the key global oil transit route of the Strait of Hormuz.
