Indian shares tumbled sharply on Monday as geopolitical tensions escalated after U.S. President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz.
Trump also reportedly told aides he expects U.S. bombing operations to resume following midterm elections, deepening uncertainty across global markets.
Brent crude prices jumped more than 2 percent toward $107 a barrel, reigniting investor fears about the consequences for India’s economy.
Rising crude prices raise significant concerns about India’s import bill, inflation trajectory, and corporate earnings across key sectors.
The benchmark BSE Sensex fell 874 points, or 1.2 percent, to 73,021 in early trade, reflecting broad-based selling pressure across the market.
The NSE Nifty index also declined sharply, dropping 262 points, or 1.13 percent, to settle at 22,880 during the session.
Financial stocks were among the hardest hit, with Kotak Mahindra Bank, SBI, Bajaj Finance, and HDFC Bank all falling around 2 percent.
Trent also joined the list of prominent decliners, adding further weight to the index’s losses as sentiment remained deeply negative.
Adani Power dipped over 1 percent following the completion of a corporate restructuring exercise, contributing to weakness in the broader energy segment.
Steel Authority of India, known as SAIL, declined more than 1 percent, while Bharat Coking Coal rallied 2.3 percent after the two companies signed a memorandum of understanding to jointly develop and operate two coal blocks in West Bengal.
Power Grid Corp shed 1.1 percent amid reports related to fund raising activity, adding to the list of blue-chip stocks under pressure Monday.
Cupid tumbled 2.5 percent after its board approved the conversion of up to 30 lakh warrants into an equivalent number of equity shares of Baazar Style Retail.
On the positive side, Aequs surged 2.6 percent after the company approved a preferential issue of warrants, bucking the wider downward trend.
Sedemac Mechatronics advanced 1.6 percent after announcing the commencement of limited commercial production at its newly established manufacturing facility in Maharashtra.
