Daijiworld Media Network - Mumbai
Mumbai, Mar 2: Benchmark Indian markets slumped sharply on Monday as investors turned risk-averse amid escalating tensions in West Asia and a spike in global crude prices.
The S&P BSE Sensex plunged over 1,000 points in early trade, slipping below the 81,000 mark, while the Nifty 50 fell under 24,900, marking one of the steepest opening declines in recent weeks.
The sharp fall followed renewed US and Israeli strikes on Iran over the weekend and Tehran’s retaliation, reviving fears of a broader regional conflict. The heightened geopolitical risk triggered selling across equities, currencies and bonds as global investors shifted towards safer assets.
Global crude benchmarks surged, with Brent futures climbing to multi-month highs amid concerns over potential disruptions through the Strait of Hormuz. The strategic passage accounts for nearly one-fifth of global oil shipments, and any instability in the region typically fuels energy price volatility.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said rising crude prices are currently dominating market sentiment. He noted that a sharper spike in oil prices is likely only if the Hormuz route is actually closed, which has not been confirmed so far. If Brent remains around $76 per barrel, markets may stay under pressure, though a deep crash appears unlikely.
India’s heavy dependence on imported crude adds to macroeconomic concerns. A sustained rise in oil prices could widen the trade deficit and put pressure on the rupee. Asian currencies have already weakened, while safe-haven demand has increased across global markets.
Market experts cautioned against panic selling during geopolitical shocks, noting that past crises such as the Covid crash and the Russia–Ukraine conflict saw markets recover within months after initial fears subsided. However, with the situation evolving rapidly, investors have been advised to remain cautious and avoid emotional trading.
Analysts suggest that phases of market weakness can be used to gradually accumulate quality stocks linked to domestic consumption themes such as banking, automobiles, capital goods and defence.