Indian stock markets fell sharply on Monday, while the rupee weakened to a record low after Prime Minister Narendra Modi urged austerity measures, including fuel conservation, reduced imports, and increased gold purchases, amid rising global energy prices.
India, the world’s third-largest oil importer and consumer, has so far avoided increasing retail fuel prices despite global crude volatility.
The Nifty 50 dropped 1.49% to 23,815.85, while the BSE Sensex fell 1.7% to 76,015.28. Meanwhile, the rupee closed at a record low of 95.31 per dollar, declining around 0.9%—its steepest single-day fall since March 27.
Brent crude prices climbed more than 2.6% to around $104 per barrel after US President Donald Trump rejected Iran’s response to Washington’s peace proposal, describing it as “unacceptable.”
Market analyst Arun Kejriwal called the decline a “knee-jerk reaction” to the prime minister’s remarks, adding that sustained high oil prices remained the key concern for investors.
“The bigger overhang for Indian markets is oil refusing to fall and hold below $100 despite peace efforts between Iran and the US, which will keep weighing on sentiment,” he said.
Sector-wise, 13 of 16 major sectors ended in the red. Small-cap and mid-cap indices also fell around 1.5% each.
Oil marketing companies including Indian Oil, BPCL, and HPCL declined between 2.3% and 3%.
Index heavyweight Reliance Industries dropped 3.3%, while travel-related stocks such as Indian Hotels, Lemon Tree, Chalet Hotels, Thomas Cook, and Yatra Online fell between 1% and 4.5%.
Airline company IndiGo lost 4.9%, while jewellery stocks including Titan, Senco Gold, and Kalyan Jewellers plunged between 6.7% and 9.3%.
State Bank of India fell 4.5% after missing profit estimates, dragging the broader PSU banking index down 2.5%.
In contrast, Hyundai Motor India rose 2.8% after reporting a smaller-than-expected profit decline, while agrochemical firm UPL gained 3.6% following stronger quarterly earnings.
