Business

IIE DIGITAL DESK : The start of trading on Monday in Mumbai, Indian equity markets witnessed a steep decline, reflecting heightened global uncertainty and rising crude oil prices. The benchmark indices opened significantly lower, with the Sensex falling by 845.68 points to 76,482.51 in early trade. The Nifty also dropped sharply by 237.90 points, settling at 23,936.85.

Market experts attributed the sudden downturn primarily to escalating geopolitical tensions in West Asia, which have triggered concerns over global energy supply disruptions. The sharp rise in crude oil prices has added further pressure on investor sentiment, as higher energy costs are expected to impact inflation and corporate earnings.

The negative opening also reflects increased panic among investors, many of whom appear to be offloading equities in response to global risk factors. The broader sentiment in Asian markets has also been cautious, contributing to the weak start in India.

Alongside the equity market decline, the Indian rupee also weakened against the US dollar. In early trading, the rupee depreciated by 139 paise, pushing the dollar rate to 94.90 rupees. This comes after the currency had gained some strength in the previous session, when the dollar had fallen by 71 paise to close at 93.51 rupees.

The fall in the rupee is being linked to rising demand for the US dollar, driven by higher crude oil import costs. Since India is a major importer of oil, any spike in crude prices typically increases demand for dollars, putting pressure on the domestic currency.

Both equity and currency markets opened the week on a weak note, with investors closely watching developments in global oil markets and geopolitical tensions, which are expected to continue influencing market direction in the near term.