The BSE Sensex plummeted over 1,000 points on Monday, dragged down by a surge in global crude oil prices and a massive selloff in information technology (IT) stocks. The benchmark index closed at 57,992.70, down 1,045.60 points or 1.77%. The broader Nifty of the National Stock Exchange also declined sharply, falling 318.70 points or 1.82% to settle at 17,213.40.
Oil Prices Weigh on Market Sentiment
Investor sentiment was dampened after Brent crude oil prices surged past $130 per barrel, the highest level since 2008. The spike was triggered by reports that the United States and European allies were considering a ban on Russian oil imports, escalating concerns over global supply disruptions. Rising oil prices are a major concern for India, which imports over 80% of its crude oil requirements, as it could lead to higher inflation and widen the fiscal deficit.
IT Stocks Witness Heavy Selling
IT stocks were among the worst hit, with the Nifty IT index plunging over 5%. Heavyweights like Infosys, Tata Consultancy Services (TCS), and Wipro fell sharply, dragging the overall market down. Analysts attributed the selloff to profit-booking after a recent rally and concerns over the impact of geopolitical tensions on global IT spending.
- Infosys fell 5.6% to close at Rs 1,720.45.
- TCS declined 4.8% to Rs 3,521.10.
- Wipro dropped 5.2% to Rs 548.90.
Broader Market in Red
The broader markets also witnessed a sharp selloff, with the BSE midcap and smallcap indices falling over 2% each. All sectoral indices ended in the red, with auto, banking, and metal stocks also taking a hit. The BSE auto index fell 2.3%, while the bankex declined 1.8%.
Rupee Weakens Against Dollar
The Indian rupee weakened further against the US dollar, falling to 76.98 per dollar, its lowest level in over a month. The depreciation was driven by a strong dollar and rising crude oil prices.
Market experts expect continued volatility in the near term, with geopolitical developments and oil prices remaining key triggers. They advise investors to adopt a cautious approach and focus on quality stocks.
