Mumbai, Sep 28: Indian equity markets came under heavy selling pressure on Monday as rising crude oil prices, elevated US bond yields and persistent global geopolitical uncertainty weighed on investor sentiment.
The Sensex fell 1,124 points, or 1.52 per cent, to 72,771.72, while the Nifty declined 1.56 per cent to close below the 22,800 mark. The sharp fall extended the pressure on domestic equities amid concerns over higher input costs, inflation and foreign fund flows.
The sell-off was broad-based, with realty, banking, financial services, energy and metal stocks among the sectors facing strong selling pressure. Investors remained cautious as crude prices stayed above the $100-a-barrel level, increasing concerns for oil-importing economies such as India.
International benchmark Brent crude climbed to around $108 a barrel during the session, adding to concerns over inflation and corporate margins. Higher US Treasury yields also contributed to the risk-off mood in equities.
The weakness was visible across the broader market as well, while foreign investor selling continued to remain an important market factor. The Nifty’s fall below 23,000 marked a key technical development after the index had already faced pressure over recent sessions.
Market sentiment was also affected by weak Asian cues and renewed geopolitical uncertainty. Investors are now expected to track crude oil movements, global bond yields, currency movements and foreign portfolio flows for further direction.
The sharp decline on Monday underlined the market’s sensitivity to global developments, even as domestic economic fundamentals and corporate earnings remain important factors for the medium-term outlook.