Oil surge rattles Dalal Street; Sensex drops over 2,000 points as Nifty slips below 24,000

Indian equity markets opened sharply lower on Monday as a spike in global crude oil prices triggered widespread selling across sectors, dragging the benchmark indices down in early trade.

The BSE Sensex fell more than 2,000 points soon after the opening bell, while the NSE Nifty 50 slipped below the 24,000 mark. The sell-off came amid rising geopolitical tensions in West Asia that pushed crude oil prices above $100 per barrel, raising fresh concerns about inflation and economic stability.

The sharp fall erased nearly ₹12–13 lakh crore in market capitalisation of BSE-listed companies within minutes of trading. Market participants turned cautious as higher crude prices are seen increasing input costs for several sectors and potentially widening India’s current account deficit.

Banking, auto and metal stocks were among the worst hit in the early session, reflecting the broader risk-off mood among investors. Several frontline stocks in these sectors declined as traders reduced exposure amid global uncertainty.

Defensive segments such as FMCG and information technology stocks saw relatively limited losses, offering some support to the indices even as broader markets remained under pressure.

Analysts said the immediate trigger for the decline was the sudden rise in crude prices linked to escalating tensions in West Asia. Higher energy prices tend to weigh on emerging markets like India because of their impact on inflation, currency stability and corporate margins.

Investors are expected to closely track developments in global commodity markets and geopolitical signals through the week, as volatility is likely to remain elevated in the near term.

Is