Indian shares declined on Monday amid renewed tensions in West Asia that boosted crude oil prices and rekindled worries over persistent inflation, leading to a broad-based sell-off across sectors and heightened market caution.
Indian shares ended lower on Monday as renewed tensions in West Asia lifted crude prices and revived worries that inflation could stay sticky for longer, pressuring interest-rate expectations and risk appetite. The sell-off left the Sensex down 307.24 points, or 0.40%, at 76,957.27, while the Nifty 50 fell 95.25 points, or 0.39%, to 24,080.40, according to market data and reports from PTI and other Indian outlets.
The tone weakened through the session as investors took cues from firmer global yields, foreign fund outflows and a softer mood across overseas markets. Brent crude rose 3.63% to $91.30 a barrel, adding to concerns that higher energy costs could filter through to company earnings and consumer prices, analysts told PTI.
Selling was broad-based, with utilities, information technology and fast-moving consumer goods among the hardest-hit sectors. On the Sensex, Adani Ports posted the steepest fall, while HDFC Bank gave back earlier gains after chief executive Sashidhar Jagdishan said he would seek reappointment when his current term ends on October 26. Other notable laggards included ITC, Bharti Airtel, Infosys, Kotak Mahindra Bank, Trent, Hindustan Unilever and Titan, while Sun Pharma, ICICI Bank, Axis Bank and State Bank of India advanced.
Market strategists said the combination of geopolitical risk and tighter financial conditions kept investors cautious ahead of MSCI index rebalancing, which also raised expectations of sharper end-of-session moves. Vinod Nair of Geojit Investments said escalating US-Iran tensions had pushed crude prices and bond yields higher, renewing concern about energy-led inflation and a longer period of restrictive policy. Ponmudi R of Enrich Money said the Nifty slipped to a fresh monthly low as the oil spike and elevated yields reinforced fears that the Federal Reserve may need to keep policy tighter for longer.
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