Sensex Falls 700 Points, Nifty Slips Below 23,000 as Crude Rises and Financials Drag

Indian benchmark indices opened sharply lower on Monday, with the Sensex falling more than 700 points and the Nifty slipping below the 23,000 mark as rising crude oil prices, foreign selling and weakness in financial stocks weighed on the market. The decline came after both indices recorded their seventh consecutive weekly fall last week.

At 9:25 am, the Sensex was trading at 73,188.04, down 707.70 points or 0.96 per cent, after opening at 73,734.83. The Nifty 50 stood at 22,914.45, lower by 226.05 points or 0.98 per cent, after opening at 23,064.90. The broader market also remained under pressure, with the Nifty 100, Nifty 200 and Nifty 500 each declining by nearly 1 per cent.

Market volatility increased during early trade, with the India VIX rising 10.73 per cent to 13.47. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the domestic economy and corporate earnings remained resilient, but external pressures were weighing on markets. He pointed to Brent crude at around $106 and the US 10-year yield at 5.2 per cent as significant headwinds, while noting that foreign portfolio investors had turned sellers again in September after buying in July and August.

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Financial stocks were among the biggest drags on the benchmark indices. Bajaj Finance declined 1.59 per cent, Kotak Mahindra Bank fell 1.38 per cent and HDFC Bank dropped 1.37 per cent. ICICI Bank was down 0.93 per cent, SBI declined 0.80 per cent and Bajaj Finserv slipped 1.19 per cent. The Nifty Financial Services 25/50 index fell 1.08 per cent, while the Nifty Private Bank index declined 1.14 per cent.

Selling was visible across most sectors, with the Nifty Metal index falling 1.33 per cent, Realty declining 1.30 per cent, PSU Bank dropping 1.26 per cent and Auto falling 0.95 per cent. FMCG, Oil & Gas, Chemicals and Consumer Durables also traded lower. The Nifty IT index declined 0.16 per cent, while Pharma and Healthcare fell 0.35 per cent and 0.49 per cent, respectively. Among Sensex stocks, TCS was the only major gainer, rising 0.27 per cent in early trade.

Crude oil prices added to the pressure on Indian equities. Brent crude was trading at $106.61 a barrel, up 2.20 per cent, while WTI crude rose 1.45 per cent to $93.75. The rise followed a lack of progress in US-Iran talks and uncertainty surrounding the Strait of Hormuz. Higher crude prices are a concern for India because they can increase the country's import bill, add to inflationary pressures and weigh on corporate profitability.

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