Indian equity benchmarks extended their losses in early trade on Monday, with the benchmark indices witnessing sharp selling pressure amid rising concerns over crude oil prices and escalating Iran-US tensions. The NIFTY 50 slipped below the crucial 23,900 mark and was trading at 23,871.20, down sharply during the session. Meanwhile, the BSE SENSEX tumbled 1,066.88 points, or 1.38 per cent, to 76,261.31 as investor sentiment remained weak across sectors.
The selloff remained broad-based, with all major market segments trading deep in the red. Broader markets also witnessed significant cuts, as the Nifty Midcap 100, Smallcap 100 and Microcap 250 indices declined between 1.2 per cent and 1.8 per cent.
Financial stocks emerged among the biggest laggards in the market correction. The Nifty Bank index dropped over 1.5 per cent, while PSU Bank and Financial Services indices fell as much as 2.1 per cent and 1.5 per cent, respectively. Heavyweight banking and financial counters including State Bank of India, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Bajaj Finance remained under sustained selling pressure.
Consumer-focused sectors were among the worst affected after Prime Minister Narendra Modi appealed to citizens to reduce consumption of fuel, gold and edible oils, while also avoiding unnecessary foreign travel. The remarks triggered concerns over FY27 demand growth and consumption trends. The Nifty Consumer Durables index plunged nearly 4 per cent, led by a steep 7.7 per cent decline in Titan Company. Shares of Trent, Asian Paints and Bharti Airtel also traded sharply lower.
Auto stocks too remained under pressure, with the Nifty Auto index falling over 1.5 per cent. Major automobile companies such as Maruti Suzuki, Mahindra & Mahindra and Bajaj Auto witnessed notable losses amid fears that rising crude oil prices and possible austerity measures could impact consumer spending sentiment.
Market participants also reacted negatively to the Prime Minister’s comments urging citizens to cut dependence on imports such as gold, edible oils and chemical fertilisers. Analysts believe the remarks indicate growing concerns within the government regarding India’s import bill and widening current account deficit at a time when global crude oil prices are witnessing renewed volatility.