MUMBAI — Indian equity markets closed sharply lower on Monday, with benchmark indices posting steep losses as escalating tensions between the United States and Iran rattled investor sentiment and fueled concerns over energy prices and inflation.
The BSE Sensex dropped 1,836.57 points, or 2.46 percent, to close at 72,696.39, while the NSE Nifty fell 601.85 points, or 2.60 percent, to settle at 22,512.65.
Market analysts said the broader trend remains firmly bearish, with technical indicators showing a pattern of lower highs and lower lows, signaling sustained downward momentum. The 22,650–22,700 range is now seen as immediate resistance for the Nifty, while the 22,900–23,000 zone represents a stronger supply area tied to earlier breakdown levels.
The selloff was driven by heightened geopolitical uncertainty in the Middle East, prompting widespread selling across sectors.
Market volatility surged, with the India VIX jumping more than 17 percent to close at 26.73, reflecting increased investor anxiety.
Broader markets underperformed the benchmarks, with the Nifty MidCap index falling 3.69 percent and the Nifty SmallCap index declining 4.16 percent.
Sectorally, construction-related stocks led the losses, with the Nifty Construction Durable index dropping more than 5 percent. Realty and metal stocks also saw sharp declines, while information technology stocks proved relatively resilient and recorded the smallest losses of the session.
The downturn coincided with a rise in crude oil prices amid the escalating conflict. Brent crude climbed to $108.73 per barrel, up 2.37 percent, after President Donald Trump warned of severe consequences if Iran failed to reopen the Strait of Hormuz within 48 hours.
Iran responded by threatening to target energy infrastructure in the region, further heightening concerns about supply disruptions.
In New Delhi, Prime Minister Narendra Modi told the Lok Sabha that the government is taking continuous steps to ensure uninterrupted energy supplies through the Strait of Hormuz, a critical global oil transit route.
The developments have intensified concerns over energy security and inflation, leading investors to adopt a more cautious stance and triggering a broad-based selloff in equities. (Source: IANS)
