India’s stock market fell sharply on Monday after an oil price surge pushed crude oil above $115 per barrel. Rising tensions in the Middle East made investors cautious and triggered heavy selling in early trading.
The NSE Nifty 50 index fell 686.85 points, or 2.8%, to 23,663.60 around 10:30 AM. This marked the lowest level since April 2025 when US President Donald Trump announced reciprocal tariffs. Meanwhile, the BSE Sensex dropped 2,190.92 points, or 2.8%, and traded at 76,727.99. Most stocks in the index traded in the red, showing broad market weakness.
Rising oil prices and Middle East tensions hit Indian stock markets
Investors lost more than ₹12 lakh crore in market value as selling pressure spread across sectors. Broader market indices also declined between 2% and 3%. Higher crude prices usually hurt market sentiment because India depends heavily on imported energy.
Market volatility also increased sharply during the session. The India VIX, which measures investor fear and market volatility, jumped 22% and crossed 24 points. This marks the highest level seen in nearly two years.
Global market weakness also affected Indian equities. US markets had already fallen 1–2% on Friday due to concerns about geopolitical tensions and energy prices. Asian markets followed the same trend on Monday, with indices in Japan and South Korea plunging 7–8%.
Analysts said investors remain cautious as the Middle East conflict continues to affect global energy supply and financial markets. If crude prices remain elevated, markets may face further volatility in the coming days.
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