Oil shock triggers market rout: Sensex tanks over 1,800 points, Nifty slides below 24,000
PTC Web Desk: Indian equity markets began the week on a grim note on Monday as benchmark indices plunged sharply in early trade, mirroring heavy selling across global markets and a sudden spike in crude oil prices.
The BSE Sensex dropped more than 1,800 points at the opening bell, starting the session at 77,056.75, down 2.36 per cent. The Nifty 50 also witnessed a steep fall, opening at 23,868.05 after losing over 580 points, or about 2.38 per cent.
The sharp decline comes amid a sudden surge in global crude oil prices, which reportedly jumped nearly 25 per cent to around USD 116 per barrel. The spike has triggered concerns about inflationary pressures and potential economic slowdown, particularly for oil-importing nations such as India.
Market analysts say the surge in oil prices could have wide-ranging implications for the Indian economy, as the country relies heavily on imported crude to meet its energy needs.
Banking and market expert Ajay Bagga said the early indicators were already pointing towards a steep correction in domestic equities.
“Indian markets were already signalling weakness through the Gift Nifty futures. A sustained rise in crude prices can significantly affect India’s GDP growth, widen the current account deficit and push inflation higher,” Bagga said.
India imports more than 85 per cent of its crude oil requirements, making the economy particularly vulnerable to fluctuations in global oil prices.
According to experts, the increase in crude rates may soon translate into higher retail fuel prices. Petrol and diesel prices could see an upward revision, while aviation turbine fuel costs may also rise. Cooking gas prices had already been increased recently for both household and commercial consumers.
Several sectors that depend heavily on petroleum derivatives are expected to come under pressure in the coming sessions. Industries such as aviation, automobiles, paints, tyres and chemicals may feel the immediate impact of higher input costs.
Market participants also warned that the current liquidity squeeze could intensify selling pressure across the board. Even stocks not directly linked to crude oil could witness declines as investors rush to reduce exposure amid heightened uncertainty.
- With inputs from agencies
