Sensex plunges 719 points as oil surge, West Asia tensions trigger global sell-off

Equity benchmark indices Sensex and Nifty slumped more than 1 per cent on Monday as rising crude oil prices, escalating tensions in West Asia and a broad global market sell-off dented investor sentiment.

Extending losses for a second consecutive session, the BSE Sensex fell 719.08 points, or 0.97 per cent, to close at 73,524.26. During intraday trade, the index dropped as much as 924.4 points to touch 73,318.94.

The NSE Nifty declined 243.70 points, or 1.04 per cent, to settle at 23,123. The benchmark had fallen nearly 297 points during the session.

Among Sensex constituents, Eternal, Mahindra & Mahindra, Trent, InterGlobe Aviation, Reliance Industries and Tata Consultancy Services were among the major losers.

Power Grid Corporation, Tech Mahindra, Bharat Electronics and Bharti Airtel bucked the trend and ended higher.

Oil spike, global weakness weigh on sentiment

Investor sentiment remained under pressure after Brent crude surged 4.1 per cent to $96.91 a barrel, moving closer to the $100 mark amid renewed geopolitical tensions in West Asia.

Global markets also witnessed heavy selling.

In Asia, South Korea's Kospi plunged 8.29 per cent, while Japan's Nikkei 225 dropped 3.85 per cent. Hong Kong's Hang Seng and China's Shanghai Composite also ended sharply lower.

European markets were trading in negative territory, while Wall Street had ended deeply in the red on Friday. The Nasdaq Composite had tumbled 4.18 per cent, the S&P 500 lost 2.64 per cent and the Dow Jones Industrial Average fell 1.35 per cent.

Vinod Nair, Head of Research at Geojit Investments Limited, said global sentiment had weakened due to escalating tensions in the Middle East and concerns over the sustainability of the artificial intelligence-led rally in technology stocks.

"Selling pressure was also seen in semiconductor-heavy indices, showing early signs of valuation fatigue and positioning unwind," he said.

FIIs continue selling

Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 8,776.25 crore on Friday, according to exchange data.

Ponmudi R, Chief Executive Officer of Enrich Money, said fears of a prolonged regional conflict intensified after Israel and Iran exchanged missile strikes despite recent ceasefire efforts.

"The renewed escalation heightened concerns about global energy supplies and added to investor nervousness," he said.

Market participants also remained cautious amid signs of fatigue in global technology and AI-related stocks following a prolonged rally.

On Friday, the Sensex had fallen 116.67 points while the Nifty declined 49.85 points.