Indian Equity Markets Plummet: 1300-Point Sensex Crash and Nifty Near 22,700

Equity Markets Start Week on Lower Note

The benchmark equity indices declined on Monday, mirroring a broad risk-off move across Asia. The Sensex was down 1,389.10 points or 1.86 percent at 73,143.86, while the broader Nifty was at 22,673.95, down 440.55 points or 1.91 percent.

Oil Prices Remain Elevated

Oil prices were little moved on Monday but stayed above the $110-mark, with Brent crude hovering near $113 a barrel. This poses a challenge for India, one of the world's largest oil importers. Persistently high oil prices fuel inflation, widen external imbalances, weaken the rupee, and extend foreign capital outflows.

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Market Performance

• Brent crude futures fell 1 cent to $112.18 a barrel by 0202 GMT, after settling on Friday at their highest since July 2022.
• U.S. West Texas Intermediate was at $98.75 a barrel, up 52 cents, after the previous session's gain of 2.27%.

FII Selling Intensifies

Selling by foreign portfolio investors (FPIs) intensified amid the ongoing conflict in West Asia. FPIs remained net sellers on all trading days in March, with total outflows through exchanges standing at Rs 90,152 crore till March 20.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Volatility Index Rises

The fear gauge of the volatility index, India Vix, rose nearly 10 percent to 25.03 level.

Geopolitical Concerns

Iran has threatened to completely shut the Strait of Hormuz and launch retaliatory attacks on regional energy and water infrastructure if the US attacks its power plants.

Weak Global Cues

Asian markets fell 3.1 percent as tensions in the West Asia intensified, undermining hopes of a near-term de-escalation in the U.S.-Israeli conflict with Iran, now in its fourth week.