Sensex Slumps Over 700 Points, Nifty Ends Below 23,150 as Oil, Iran and Fed Fears Hit Markets

Mumbai, June 8: Indian benchmark indices ended sharply lower on Monday, with the Nifty closing below the 23,150 mark as rising crude oil prices due to Middle East tensions, weak global cues and fears of a hawkish US Federal Reserve weighed on investor sentiment. 

The BSE Sensex fell 719.08 points, or 0.97%, to close at 73,524.26, while the NSE Nifty 50 declined 243.70 points, or 1.04%, to settle at 23,123. Market breadth remained decisively negative, with 3,007 stocks declining against 1,172 advances on the NSE, reflecting widespread risk aversion among investors. 

The selloff came amid a surge in global crude oil prices following escalating tensions in the Middle East, raising concerns about inflation and the impact of higher energy costs on the global economy. 

Broad-based sell-off across sectors  

Technology stocks remained under pressure for a fourth consecutive session as investors continued to pare exposure to the sector following a sharp selloff in global tech shares. 

Sensex feared oil and Iran as well as the US Fed cracking the whip on inflation as the American economy appeared resilient. Source: BSE  

Among Nifty constituents, Wipro emerged as the top loser, alongside Jio Financial Services, Eternal, Hindalco Industries and Shriram Finance. The weakness in IT stocks mirrored declines in global technology counters after stronger-than-expected U.S. economic data reduced expectations of near-term interest-rate cuts by the Federal Reserve. 

Metal stocks also witnessed heavy selling amid concerns over slowing global growth and weaker risk appetite. Hindalco and other metal counters came under pressure as investors moved away from cyclical sectors. 

On the positive side, Max Healthcare, Power Grid Corporation, Bharat Electronics, Tech Mahindra and Nestlé India managed to buck the broader trend and ended the session in the green as the top gainers. 

Auto stocks also revved down with their index declining 1.8%. 

Realty and metal stocks lead sectoral decline 

Selling was visible across the market, with all major sectoral indices ending in negative territory.

The Nifty Realty and Nifty Metal indices were the worst performers, both falling more than 2%. Realty stocks came under pressure as higher interest-rate concerns and broader market weakness weighed on sentiment. 

Nifty kept bleeding the whole day as investors chose to ignore resilient India GDP data for things that are more immediate and impactful. Source: NSE  

Losses were also pronounced in auto, consumer durables, media, infrastructure, power, energy and oil & gas stocks, each of which declined more than 1%. The Nifty IT index extended its recent correction as concerns over global technology spending and artificial intelligence-driven disruption continued to cloud the sector’s outlook. 

Broader markets underperform 

The broader market fared even worse than the headline indices, highlighting the extent of the risk-off mood. 

The Nifty Midcap 100 index fell 1.4%, while the Nifty Smallcap 100 index declined 1.9% as investors booked profits in high-beta stocks following a strong rally in recent months. 

Rising oil prices, weakness across Asian markets and continued uncertainty surrounding global monetary policy prompted investors to adopt a more cautious stance. 

Focus shifts to oil and global cues 

Going forward, investors will closely monitor crude oil prices and developments in the Middle East, which have emerged as the primary drivers of market sentiment. 

While India’s macroeconomic fundamentals remain supported by stronger-than-expected GDP growth, global factors are likely to dictate near-term market direction. A sustained rise in oil prices could add to inflationary pressures and weigh on corporate earnings, keeping investors cautious in the sessions ahead. 

Source

• NSE
• BSE