Equities Slide for Second Straight Session as Global Risk-Off Mood, Oil Surge Weigh on Sentiment
By Our Business Correspondent
Indian equity markets witnessed a broad-based selloff on Monday, with benchmark indices ending sharply lower for the second consecutive session amid mounting global uncertainties, rising crude oil prices, and escalating geopolitical tensions in West Asia. Investor sentiment remained under pressure as concerns over a potential interest-rate hike in the United States, coupled with weakness across Asian and European markets, triggered widespread profit-booking across sectors.
The benchmark S&P BSE Sensex plunged 719.08 points, or 0.97 per cent, to close at 73,524.26, while the NSE Nifty50 declined 243.70 points, or 1.04 per cent, to settle at 23,123. The losses extended the market’s two-day decline, during which the Sensex has fallen 1.13 per cent and the Nifty has shed 1.38 per cent.
Market participants attributed the decline primarily to a sharp rise in crude oil prices following renewed hostilities in the Middle East, which heightened concerns over inflationary pressures and potential disruptions to global energy supplies. Brent crude futures surged more than 4 per cent to trade above $97 per barrel after reports suggested fresh Israeli military action in Lebanon despite an existing ceasefire arrangement. The developments reignited concerns over stability in the region and the smooth movement of oil cargoes through the strategically significant Strait of Hormuz.
The spike in oil prices comes at a sensitive time for emerging markets such as India, which remain heavily dependent on energy imports. Higher crude prices could increase the country’s import bill, put pressure on the current account balance and complicate the inflation outlook, analysts said.
Selling pressure was visible across most sectors, with metal, automobile, infrastructure and financial stocks leading the decline. Heavyweight counters such as Reliance Industries, Larsen & Toubro and HDFC Bank emerged as the biggest drags on the Nifty index, collectively contributing significantly to the benchmark’s fall. Reliance Industries declined 2.18 per cent, Larsen & Toubro lost 2.09 per cent, while HDFC Bank slipped 1.21 per cent.
Broader markets fared even worse than the benchmark indices, reflecting a deeper risk-off sentiment among investors. The BSE MidCap index declined 1.70 per cent, while the SmallCap index fell 1.88 per cent, indicating substantial selling in the broader market universe.
Market breadth remained decisively negative. On the BSE, declining stocks outnumbered advancing shares by nearly three to one, with 3,192 stocks ending lower compared to 1,181 gainers. Another 180 stocks remained unchanged.
Adding to investor caution, the India VIX—often referred to as the market’s fear gauge—jumped 7.85 per cent to 17.03, signaling a sharp rise in volatility expectations in the near term.
Despite the widespread selloff, healthcare stocks emerged as a rare bright spot and managed to end in positive territory, supported by stock-specific developments and defensive buying. Analysts noted that investors appeared to be shifting towards relatively resilient sectors amid growing uncertainty in global markets.
Global cues remained largely unsupportive throughout the trading session. Asian markets closed lower as investors reacted to geopolitical developments in the Middle East and reassessed the implications of tighter monetary conditions in major economies. European markets also traded in negative territory, mirroring concerns over rising energy costs and geopolitical risks.
Meanwhile, data from Japan showed the country’s economy expanded 0.5 per cent quarter-on-quarter during the first quarter of 2026, surpassing market expectations of 0.3 per cent growth. The expansion was driven by stronger household spending, increased public-sector investment and resilient export demand. However, analysts noted that higher borrowing costs continued to dampen business investment sentiment.
Investor concerns were further amplified by developments in the United States, where markets ended sharply lower on Friday. The technology-heavy Nasdaq Composite recorded its steepest single-day decline since April 2025, while the S&P 500 and Dow Jones Industrial Average also posted significant losses. The selloff followed stronger-than-expected U.S. employment data, which reinforced fears that the Federal Reserve could maintain higher interest rates for longer than anticipated.
Market participants are now awaiting key U.S. inflation data later this week, which could provide further clarity on the trajectory of monetary policy in the world’s largest economy.
In the currency market, the Indian rupee weakened against the U.S. dollar, reflecting the broader risk-off environment and rising crude oil prices. The domestic currency traded at 95.7375 against the dollar compared with the previous session’s close of 95.1800.
Commodity markets also witnessed heightened volatility. Gold futures on the Multi Commodity Exchange (MCX) declined 1.33 per cent to ₹1,53,529 per 10 grams, while the U.S. Dollar Index slipped 0.23 per cent to 99.82. Meanwhile, the yield on the benchmark U.S. 10-year Treasury note climbed to 4.563 per cent, underscoring persistent concerns over elevated borrowing costs.
Among individual stocks, EMS emerged as one of the top gainers, surging more than 10 per cent after securing the lowest bidder status for a ₹102.84-crore sewerage infrastructure project from UP Jal Nigam. H G Infra Engineering also gained nearly 3 per cent after receiving a provisional completion certificate for its portion of the Ganga Expressway project in Uttar Pradesh.
Creative Newtech soared over 13 per cent after receiving an advance work order from Bharat Sanchar Nigam Limited (BSNL) under the Digital Bharat Nidhi initiative. Cupid Breweries and Distilleries advanced nearly 5 per cent following the acquisition of a manufacturing facility in Odisha.
On the corporate front, Zee Entertainment announced a board meeting to consider fundraising through equity issuance, while travel technology platform Ixigo declined after approving the acquisition of a majority stake in Brevistay Hospitality. Defence-focused Sigma Advanced Systems also remained in focus after securing a $21.97 million export order for artillery shell bodies from a North American customer.
Market experts believe investor sentiment is likely to remain cautious in the near term as geopolitical tensions, crude oil movements, U.S. inflation data and central bank policy expectations continue to influence global financial markets. With volatility rising and risk appetite moderating, traders are expected to remain selective until greater clarity emerges on both geopolitical and macroeconomic fronts.
Stocks in Focus
Several mid‑ and small‑cap names saw sharp moves on company‑specific developments:
- EMS Ltd. surged 10.35% after emerging as the lowest bidder for a ₹102.84‑crore sewerage project from UP Jal Nigam (Urban), to be executed within 24 months.
- H G Infra Engineering gained 2.84% on receiving a provisional completion certificate from Adani Road Transport for the Ganga Expressway project worth ₹4,970.99 crore.
- Zee Entertainment Enterprises slipped 1.05% ahead of its June 19 board meeting to consider fund‑raising through equity issuance.
- Cupid Breweries and Distilleries jumped 4.96% after signing a pact with United Spirits to acquire a manufacturing unit in Odisha for ₹22.50 crore.
- Le Travenues Technology (Ixigo) fell 2.49% following approval to acquire a 54.66% stake in Brevistay Hospitality for ₹65.69 crore.
- Sigma Advanced Systems declined 4.39% despite securing a $21.97 million export order for artillery shell bodies from a North American client.
- Adani Ports and SEZ eased 1.05% after announcing a 10‑year marine‑services contract for Argentina’s first LNG export project.
- Waaree Renewable Technologies slipped 2.36% on receiving a Letter of Award from Sunsational Power Private Ltd. for an EPC contract.
- Lupin edged 0.58% lower despite unveiling a strategic collaboration with Spain’s Laboratorios ERN S.A. to launch the Luforbec 100/6 inhaler.
- Creative Newtech soared 13.44% after its consortium secured an advance work order from BSNL, acting on behalf of Digital Bharat Nidhi, for a major government technology project.