SRINAGAR: Indian equity markets witnessed a sharp selloff on Monday, with investors losing nearly Rs 7 lakh crore in market capitalisation after benchmark indices plunged amid soaring global crude oil prices, escalating tensions in West Asia and Prime Minister Narendra Modi’s appeal to reduce dependence on imported goods, including petrol, diesel and gold.
The benchmark BSE Sensex crashed 1,313 points to close at 76,015, while the NSE Nifty50 declined 360 points to settle at 23,816. The broader market also remained under heavy pressure, with midcap and smallcap indices falling nearly 1.5 per cent each.
The massive decline came hours after Prime Minister Modi, during a speech in Hyderabad, urged citizens to reduce fuel consumption, avoid unnecessary foreign travel and cut purchases of imported commodities such as gold, edible oils and chemical fertilisers. He also advocated greater adoption of work-from-home practices and stressed the need for a “green revolution” to reduce dependence on imports.
The Prime Minister’s remarks triggered panic selling across sectors linked to consumption, travel and jewellery, with investors interpreting the comments as a signal of mounting concern within the government over India’s rising import bill and widening current account deficit.
Market sentiment was further weakened after Brent crude prices surged above $104 per barrel, amid renewed uncertainty over the West Asia crisis following US President Donald Trump’s reported rejection of Iran’s latest response to Washington’s peace proposal.
Analysts said the twin impact of rising oil prices and fears of a domestic demand slowdown weighed heavily on investor confidence.
Experts said the market was facing pressure from two major headwinds — elevated crude prices and the government’s austerity-oriented messaging aimed at managing the current account deficit. Sectors linked to petroleum consumption, fertilisers, gold, tourism, aviation and hospitality were likely to remain under sentimental pressure if concerns over imported inflation persisted, they pointed out.
Jewellery stocks emerged among the worst hit during the session. Titan plunged nearly 6 per cent, while Kalyan Jewellers and Senco Gold also recorded steep losses amid fears that reduced gold consumption could impact demand.
Aviation and travel-linked stocks also declined sharply due to rising fuel costs and concerns over reduced discretionary spending. IndiGo parent InterGlobe Aviation fell nearly 5 per cent, while hotel and travel companies, including Indian Hotels, Lemon Tree Hotels, Chalet Hotels, Thomas Cook and Yatra Online slipped between 1 and 4.5 per cent.
Oil marketing companies Indian Oil, BPCL and HPCL declined between 2 and 3 per cent, while Reliance Industries lost more than 3 per cent.
Banking shares also remained under pressure. State Bank of India fell 4.5 per cent, dragging PSU banking stocks lower, while HDFC Bank, Axis Bank and ICICI Bank also traded in the red.
The Indian rupee weakened sharply alongside equities, falling to a record closing low of 95.31 against the US dollar, marking its steepest single-day decline since March 27.
However, a few defensive sectors showed resilience amid the broader market turmoil. Tata Consumer Products gained over 3 per cent, while pharmaceutical stocks, including Sun Pharma and Cipla, traded relatively steady.
Meanwhile, shares of electric vehicle and electronics-related companies witnessed buying interest after the Prime Minister emphasised cleaner energy adoption and reduced fossil fuel dependence.
Market experts said volatility is likely to remain elevated in the coming sessions if crude oil prices continue to stay above the psychologically significant $100-per-barrel mark.
