Mumbai: The stock market had a very poor start to the week. On Monday, the Sensex fell by around 1,450 points, while the Nifty dropped below the 22,400 mark. This was the second straight day of heavy selling, showing growing fear among investors.
Rising Oil Prices Add Pressure
One of the biggest reasons for the fall is the sharp rise in crude oil prices. Brent crude has climbed close to USD 116 per barrel. Higher oil prices increase costs for India, which imports most of its oil. This raises concerns about inflation and reduces company profits.
Middle East Tensions Impact Markets
The ongoing conflict in the Middle East, especially involving Iran, is worsening. There are fears that the war may spread further, affecting global oil supply. This has made global markets unstable and reduced investor confidence across countries, including India.
Foreign Investors Pull Out Money
Foreign Institutional Investors (FIIs) are continuously selling Indian stocks. In March alone, they have sold shares worth about ₹1.18 lakh crore. This steady outflow of money is putting additional pressure on the market and pulling prices down.
Rupee Weakness Adds To Concerns
The Indian rupee also showed high volatility. After opening stronger by Rs 1.22, it later fell by 52 paise and crossed ₹94 per dollar. A weaker rupee makes imports more expensive and creates uncertainty in the market.
Banking Stocks Under Pressure
Banking and financial stocks also declined by around 2–2.5%. This is partly due to new RBI rules that limit banks’ forex positions. These changes may affect bank earnings and operations, leading to cautious sentiment in the sector.
Volatility Due To F&O Expiry
The ongoing F&O expiry has added to market volatility. Traders tend to adjust positions during this period, which increases price swings and uncertainty.
Experts Advise Caution
Experts believe that if oil prices remain high, India’s GDP growth may slow down and company earnings could be impacted. Investors are advised to stay cautious and avoid risky decisions in such uncertain times.
