MUMBAI : Indian markets closed lower on Monday as rising oil prices and fresh US-Iran tensions unsettled investors. The Sensex fell 307 points, or 0.40%, to 76,957.27. The Nifty dropped 95 points to 24,080.40, briefly slipping under 24,000 during the day.
Brent crude pushed above $90 a barrel after new military exchanges between the United States and Iran raised the risk of disruption in the Strait of Hormuz. While India, which imports the bulk of its oil, higher crude quickly feeds into inflation worries and expectations of tighter policy.
Global bond yields added to the pressure. Comments from Federal Reserve Chair Kevin Warsh reinforced the view that US rates could stay higher for longer, making risk assets less attractive. Indian equities felt the impact across the board.
Metal stocks led the decline, with the Nifty Metal index falling 2.45%. FMCG dropped 1.69%. Small-caps were also weak, though mid-caps managed a modest gain. Among individual stocks, Adani Enterprises slid 9.76% and Adani Ports 6.70%. ITC, Bharti Airtel and Tata Motors Passenger Vehicles all lost more than 3%. Sun Pharma rose about 3%, offering limited support along with a few other defensive names.
HDFC Bank fell 1.53% after CEO Sashidhar Jagdishan said he would not seek another term. The stock had risen briefly on the news before turning lower.
Foreign investors continued to sell. FIIs offloaded ₹5,040 crore on 28 August even as domestic institutions bought a similar amount. For the full month of August, foreign investors remained marginal net buyers while DIIs invested roughly ₹53,700 crore. The latest MSCI rebalancing added another layer of stock-specific flows.
The market enters September with the same set of variables in play: oil prices, US rate expectations, foreign flows, and the risk of further geopolitical escalation.
