Sensex Plunges 500 Points as Brent Crude Tops $90

Indian benchmark indices opened sharply lower on Monday, driven by escalating tensions between the United States and Iran. The Sensex shed over 500 points, while the Nifty 50 slipped below the 24,250 mark. Rising energy costs, with Brent crude surpassing $90 per barrel, have significantly dampened investor sentiment, fueling fears of sustained inflationary pressure and restrictive monetary policies from global central banks.

Geopolitical instability in the Middle East has disrupted key oil facilities in Kuwait and intensified concerns regarding transit security in the Strait of Hormuz. This geopolitical volatility has caused investors to pivot away from equities, leading to broader sell-offs in major Asian indices. Motilal Oswal analysts have highlighted that elevated energy costs could keep global inflation levels higher than expected, complicating the outlook for interest rates.

Private banking and real estate sectors led the decline in early trading, as Nifty Private Bank fell by over 2.31 per cent. While some defensive sectors like pharmaceuticals and information technology remained in the green, broad market breadth was decidedly weak. Analysts maintain that the Nifty is currently testing key support levels at 24,150; a failure to hold this position could trigger further technical selling. Investors are advised to focus on defensive strategies until geopolitical clarity emerges and energy prices stabilize.