Indian Stock Market Plunges Over 5% as Oil Prices Soar and Geopolitics Weigh

The Indian stock market has seen significant losses in recent weeks due to rising oil prices and geopolitical tensions. The Sensex, which is a benchmark index for Indian stocks, fell by 1,124.02 points or 1.52% on Monday to close at its lowest level since March 30, while the Nifty also declined by 360.25 points or 1.56%. This drop marks a near six-month low for both indices.

The losses are attributed to several factors, including surging crude oil prices, geopolitical tensions in West Asia, and elevated bond yields. The price of Brent crude, the global oil benchmark, has jumped nearly 4% to $108.3 per barrel, adding to the market's woes. Investors have seen a loss of Rs 17.17 lakh crore over the past month, wiping out over 5% of their wealth.

Analysts say that the US rejection of the ceasefire proposal has heightened concerns about prolonged supply-side disruptions and higher commodity prices. Vinod Nair, Head of Research at Geojit Investments Limited, noted that 'Bears remained firmly in control as the market breached a key psychological support level.' Ankur Punj, Managing Director of Equirus Wealth, said that 'Rising global bond yields and a stronger US dollar also remain important headwinds for emerging markets.'