Last Updated on June 1, 2026 4:58 pm by INDIAN AWAAZ
Rupee Weakens, Brent Crude Jumps; Inflation Concerns Hit Investors
Our Business Correspondent
Indian equity markets closed sharply lower on Monday, marking the fourth straight session of declines as investors remained wary of escalating geopolitical tensions in the Middle East. A surge in Brent crude prices and weakness in the rupee further weighed on sentiment, stoking concerns over inflationary pressures on the domestic economy.
The benchmark S&P BSE Sensex fell 508.40 points, or 0.68%, to 74,267.34, while the Nifty 50 dropped 165.15 points, or 0.70%, to settle at 23,382.60. Over the past four sessions, the Sensex has shed 2.90% and the Nifty has lost 2.70%.
Broader markets underperformed the frontline indices. The BSE 150 MidCap Index declined 1.43% and the BSE 250 SmallCap Index slipped 0.87%, reflecting weak market breadth. Volatility also picked up, with the NSE’s India VIX rising 2.20% to 16.54.
Sectoral performance was mixed. The Nifty IT index surged 2.66%, supported by strong global cues, while the Nifty Media and Nifty Metal indices gained 1.37% and 0.49% respectively. On the downside, FMCG stocks bore the brunt, with the Nifty FMCG index tumbling 2.30%. PSU banks and realty counters also lagged, falling 1.85% and 1.83% respectively.
Macro Indicators
India’s manufacturing sector showed resilience in May, with the HSBC India Manufacturing PMI rising to 55.0, the strongest reading in three months. GST collections also reflected steady growth, climbing 3.2% year-on-year to ₹1.94 lakh crore.
Bond yields edged higher, with the 10 year benchmark rising to 7.019%. The rupee weakened to 94.94 against the dollar, while MCX gold futures slipped 0.55% to ₹1,54,725. Brent crude futures for August delivery surged 3.19% to $94.03 per barrel, intensifying inflation concerns.
Global Markets
Overseas, sentiment was mixed. US Dow Jones futures pointed to a positive start, while European markets traded higher despite geopolitical risks following Israel’s deeper push into Lebanon and US–Iran military exchanges. Asian markets ended mostly higher, with South Korea hitting record levels, though caution persisted amid uncertainty over US–Iran negotiations.
In China, private survey data showed manufacturing activity expanding faster than expected, though official figures suggested softer momentum. On Wall Street last Friday, all three major indices closed at record highs, buoyed by technology stocks.
With crude prices firming and geopolitical risks mounting, analysts expect volatility to remain elevated in the near term, keeping investors on edge.