Sensex Sees Biggest Fall in Weeks as Oil Spike, PM's Crisis Call Spook Markets

Indian benchmark indices witnessed a sharp selloff on Monday as escalating tensions in West Asia, rising crude oil prices and concerns over India’s macroeconomic outlook triggered broad-based profit booking across sectors.

The BSE Sensex plunged 1,312.91 points or 1.70% to close at 76,015.28 after hitting an intraday low of 75,957.40. The NSE Nifty50 dropped 360.30 points or 1.49% to settle at 23,815.85, slipping well below the crucial 24,000 mark.

The sharp correction wiped out nearly ₹6 lakh crore in investor wealth in a single session.

Market breadth remained weak, with 2,894 stocks declining against 1,459 advancing on the BSE.

Oil Spike, Iran-US Deadlock Rattle Markets

Investor sentiment remained under pressure after hopes of peace talks between the US and Iran faded again.

The selloff intensified following US President Donald Trump's rejection of Iran's latest peace proposal, reviving fears of prolonged disruption in the Strait of Hormuz and further spikes in global oil prices.

Ankur Punj, MD & Business Head at Equirus Wealth, said nervousness gripped investors due to the sharp rise in crude oil prices and ongoing uncertainty around US-Iran negotiations, leading to panic selling in global and domestic equity markets.

Vinod Nair, Head of Research at Geojit Investments, said investors also turned cautious after Prime Minister Narendra Modi's recent appeal to conserve energy and avoid non-essential foreign travel, which raised concerns about the broader economic impact of elevated crude prices and pressure on India’s current account deficit.

Nair added that while India's fiscal position and forex reserves remain supportive for now, prolonged geopolitical tensions could increase macroeconomic stress in the coming months.

Technical Indicators Signal Further Weakness

Nilesh Jain, VP - Head of Technical and Derivative Research at Centrum Finverse, said the Nifty remained under pressure for a second straight session and slipped below its key 50-day moving average near 23,950.

He noted that the index formed a large bearish candle on the daily chart and also broke below its rising trendline support, indicating weakening short-term momentum.

According to Jain, immediate support is placed around the 23,800 level, and a breach below this could drag the Nifty towards 23,550 in the near term. On the upside, a move back above 24,000 may trigger short covering towards the 24,200 zone.

He also pointed out that momentum indicators have turned negative, with the MACD generating a bearish crossover and the RSI slipping below the 50 mark.

Meanwhile, India VIX jumped nearly 10% to close around 18.50, reflecting rising nervousness among investors.

Broader Market Sentiment Weakens

The weak sentiment extended beyond frontline indices, with GIFT Nifty falling another 386 points after market close, indicating continued pressure on domestic equities.

Despite the correction, investor participation in mutual funds remained resilient.

Data showed gold ETF inflows rose to ₹3,040.3 crore in April from ₹2,266 crore in March, reflecting rising preference for safe-haven assets amid market volatility.

Hybrid funds recorded inflows of ₹20,565.2 crore after witnessing outflows in the previous month, while smallcap and midcap mutual funds also continued to attract steady inflows.