Indian equity benchmarks closed in negative territory on Monday, extending a cautious trend as investor sentiment was hit by renewed concerns over global trade. The domestic currency also continued its slide against the US dollar.
Market Indices See Red, Rupee Extends Losses
The benchmark BSE Sensex dropped 0.4%, or 332 points, to settle at 85,440 points. Similarly, the NSE Nifty ended 0.3% lower at 26,250 points. The sell-off was primarily led by significant losses in heavyweight stocks. HDFC Bank, major technology stocks, and Reliance Industries were among the key drags on the Sensex during the session.
In the currency market, the Indian rupee depreciated for the fourth consecutive session. It closed 10 paise weaker at 90.30 against the US dollar. This decline is part of a broader trend, with the rupee having lost 55 paise since December 30, 2025, when it closed at 89.75 per dollar. Analysts attributed the rupee's weakness to geopolitical uncertainties, which bolstered the appeal of safe-haven assets like the US dollar.
Global Markets Present a Mixed Picture
While Indian markets struggled, the global scenario was sharply divided. Contrary to the local downturn, most Asian markets posted gains on Monday. Meanwhile, on Wall Street, the primary indices witnessed a significant surge. The blue-chip Dow Jones Industrial Average soared to an all-time high, powered by a rally in financial stocks.
A key driver for the US market rally was a recent military development. Energy firms saw strong buying interest after a US military strike that led to the capture of Venezuelan President Nicolas Maduro. Investors speculated that this move could potentially open access for American companies to Venezuela's vast oil reserves, the largest in the world.
Sectoral Gains and Oil Price Movement
The optimism was reflected in specific sector performances. The S&P 500 energy index jumped 1.3%, with industry giants Exxon Mobil and Chevron rising by 1% and 4%, respectively. Defence and aerospace stocks also advanced following Washington's military action. Lockheed Martin gained 2.5% and General Dynamics climbed 2.8%. The broader aerospace and defence index rose 1.2% to reach a record high.
This geopolitical event also impacted global crude oil prices. US crude oil prices increased by 1.4% to $58.1 per barrel, while the international benchmark Brent crude rose 1.2% to $61.5 per barrel.
The day's trading highlighted how domestic Indian markets are currently swayed by external geopolitical and trade-related headlines, even as other global markets find reasons to rally on different sets of news. The focus remains on further developments regarding US trade policy and global geopolitical stability.
