Sensex Ends 703 Points Lower, Nifty Closes In Red Amid Oil Surge

Benchmark indices BSE Sensex and Nifty 50 ended lower on Monday, weighed down by rising crude oil prices and escalating geopolitical tensions after US-Iran ceasefire talks failed to yield a breakthrough.

The Sensex closed 703 points, or 0.91%, lower at 76,847.57, while the Nifty fell 208 points, or 0.86%, to settle at 23,842.65. Both indices, however, recovered from sharper intraday losses, indicating some buying interest at lower levels.

During the session, the Sensex had plunged as much as 1,682 points, or 2.1%, to hit a low of 75,868.32, while the Nifty dropped 495 points, or 2%, to 23,555.60. Broader markets showed relative resilience, with Nifty Midcap 100 and Smallcap 100 indices declining around 0.5% each.

Sectorally, selling was broad-based. Auto, FMCG and IT indices fell 1–2%, while banking and financial stocks saw relatively limited declines of around 0.5%.

Among gainers, HDFC Life, Adani Enterprises, ICICI Bank, NTPC and Tata Motors ended higher. On the losing side, Maruti Suzuki, Eicher Motors, Reliance Industries, Bajaj Finance and InterGlobe Aviation were among top laggards.

Oil Surge, Global Cues Pressure Markets

Global sentiment remained weak after US-Iran talks held over the weekend failed, raising concerns over a prolonged conflict in the Middle East. Reports of a potential blockade of Iranian ports further heightened fears of disruption in global oil supply.

Crude oil prices surged sharply, with Brent rising over 7.5% to trade above $102 per barrel, crossing the key $100 mark. The spike reversed last week's decline and triggered risk-off sentiment across global markets.

Equities and bonds globally came under pressure, while the US dollar strengthened and Treasury yields edged higher, reflecting reduced expectations of interest rate cuts.

“Markets continue to derive limited support from last week's ceasefire framework, which remains intact for now and is encouraging selective buying interest along with a buy-on-dips approach,” said Vinod Nair, Head of Research, Geojit Investments.

He added that elevated oil prices are raising concerns around inflation, currency stability and broader macroeconomic balances, thereby weighing on sentiment.

On the domestic front, the ongoing Q4 earnings season is driving stock-specific action, although overall risk appetite remains cautious. Analysts expect volatility to remain elevated as markets track geopolitical developments alongside earnings trends.