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Sensex Crashes 2% as West Asia Tensions, Oil Surge Spook Markets

Indian equity benchmarks Sensex and Nifty plunged over 2% in early trade, tracking a global sell-off triggered by escalating tensions in West Asia. Surging crude oil prices, with Brent near $113 a barrel, heightened fears of inflation and supply disruptions. Foreign Institutional Investors (FIIs) remained heavy sellers, offloading equities worth Rs 5,518 crore, adding to the downward pressure. Analysts warn of continued volatility and advise investors to remain cautious, suggesting selective buying of quality stocks on dips.

Key Points: Sensex, Nifty Fall 2% on Geopolitical Tensions, Oil Price Surge

  • Sensex fell over 1,500 points
  • Oil prices surge on supply fears
  • FIIs sold Rs 5,518 crore in equities
  • Asian markets witness sharp declines
  • Analysts advise caution amid volatility
2 min read

Sensex, Nifty fall up to 2 pc in early trade as West Asia tensions rise

Indian markets plunged over 2% as escalating West Asia conflict and surging crude oil prices triggered a global risk-off sentiment and FII selling.

"Global cues remain decisively weak, with heightened volatility and persistent foreign institutional investor selling weighing on sentiment. - Analysts"

Mumbai, March 23

Domestic equity benchmarks opened the week sharply lower on Monday as escalating tensions in West Asia and surging crude oil prices weighed on investors' sentiment.

Sensex fell 1,555.62 points or 2.08 per cent to 72,977.34 in early trade, while Nifty declined 479.95 points or 2.07 per cent to 22,634.55.

Sector-wise, metal, PSU bank and auto indices led the decline, falling up to 3 per cent in early trade. Stocks such as Tata Steel, Hindalco Industries, HDFC Bank, JSW Steel, Bajaj Finance and Shriram Finance were among the top laggards. All the sectors were in the negative territory in early trade.

Market participants turned risk-averse amid no signs of de-escalation in the ongoing US-Israel-Iran conflict, now in its fourth week, raising concerns over prolonged geopolitical instability.

Oil prices also surged amid fears of supply disruptions, with Brent crude trading near $113 per barrel, while US WTI crude rose over 3 per cent, adding to inflationary pressures globally.

Investor concerns were further heightened by developments around the Strait of Hormuz, a critical oil shipping route, even as reports suggested restricted access for certain vessels.

Analysts said markets have entered a risk-off phase amid rising geopolitical uncertainty and elevated oil prices.

"Global cues remain decisively weak, with heightened volatility and persistent foreign institutional investor selling weighing on sentiment," they noted, adding that emerging markets, including India, remain vulnerable to external shocks.

Market experts said the Nifty remains under pressure, with immediate support seen around the 22,800 level, while resistance is placed in the 23,400-23,600 range.

Foreign institutional investors (FIIs) continued to remain net sellers, offloading equities worth Rs 5,518 crore in the previous session, while domestic institutional investors provided some support.

Analysts advised investors to remain cautious and avoid aggressive positions amid heightened volatility, suggesting accumulation of fundamentally strong stocks on declines.

Global cues remained weak, with major Asian indices witnessing sharp declines.

Japan's Nikkei 225 plunged around 5 per cent, Hong Kong's Hang Seng fell 3.5 per cent, and South Korea's Kospi dropped nearly 6 per cent. US markets also ended lower in the previous session.

- IANS

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Reader Comments

S
Sarah B
As an NRI investor, seeing such sharp falls is concerning. The advice to accumulate strong stocks on dips makes sense, but the volatility is nerve-wracking. Hope DIIs continue to provide support against FII selling.
R
Rohit P
Time to be patient and not panic sell. Market corrections due to geopolitical events are temporary. Our fundamentals are strong. This might be a good opportunity for long-term investors with some spare cash. 💪
P
Priya S
The Strait of Hormuz issue is critical. So much of our oil comes through that route. This isn't just about stock prices falling 2%, it's about inflation and the cost of living going up for every common person. Very stressful.
V
Vikram M
Respectfully, while the situation is bad, I feel our media and some analysts amplify the panic. Markets go up and down. We survived worse. Let's focus on increasing domestic investment and reducing our dependence on foreign capital flows.
K
Karthik V
Seeing metal and PSU bank stocks fall so much is telling. These sectors are most sensitive to global economic fears. My SIPs will continue, but I'm holding off any new lump sum investments until the dust settles a bit. Stay safe, everyone.

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