Indian Equity Markets Plunge Amid Crude Oil Price Surge and Foreign Fund Outflows

Indian equity markets took a hit on Tuesday as crude oil prices soared and foreign investors continued to pull out. The Sensex dropped by 503 points, falling to 72,260.09, while the Nifty tumbled by 151 points to 22,626.50. Among the major losers were Bajaj Finance, HDFC Bank, Kotak Mahindra Bank, Reliance Industries, Asian Paints, and Infosys. On the other hand, Sun Pharma, InterGlobe Aviation, and Adani Ports saw gains.

The global oil benchmark, Brent crude, traded at 1.74% higher at $107.1 per barrel, contributing to the market's downturn. Foreign Institutional Investors (FIIs) offloaded equities worth ₹5,353.22 crore on Monday. Ponmudi R., CEO of Enrich Money, attributed the market's woes to elevated crude oil prices and uncertainty over the US-Iran conflict.

The uncertainty surrounding the conflict has kept concerns over potential supply disruptions through the Strait of Hormuz high. This comes as US President Donald Trump said that the US would win the conflict 'very soon', while officials are communicating with mediators seeking to end the conflict.