Oil Price Surge Sparks Market Volatility as Sensex Bleeds 500 Points

Indian benchmark indices suffered significant losses on Monday due to cautious global cues and renewed uncertainty in West Asia. The BSE Sensex plummeted nearly 500 points, while the NSE Nifty50 crashed over 150 points, breaching the 23k mark.

The GIFT Nifty futures indicated a weak start for domestic equities, trading at 23,118.50, down 69 points from the previous close. Investors remain cautious due to higher energy costs and inflation concerns.

Crude oil prices climbed to $106 per barrel, with Brent crude futures rising 1.55% on the Intercontinental Exchange. This development has heightened concerns about the global interest rate trajectory and its impact on Indian equities.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that both the Nifty and Sensex have tested important support levels during the previous week. He identified 23,300 as a key resistance level for the Nifty, with a sustained move above potentially leading to 23,600.