Sensex Plunges as Brent Crude Surges Past $92 Amid Iran War Fears

India's equity markets fell for a third consecutive session on Tuesday as Brent crude prices surged to $92.63 per barrel, fueling fears of oil import costs and their impact on inflation. The Sensex closed lower after opening more than 500 points below the previous session's level, with the Nifty futures signalling a loss of at least 55 points at the open.

The losses were concentrated in aviation, banking, and automobile counters, while ONGC and Oil India, the country's two largest state-owned upstream producers, rose as higher crude realisation prices flow directly to their revenues. Foreign portfolio investors extended their September selling, with net outflows reaching ₹1,143.38 crore on September 1.

The RBI's Monetary Policy Committee meeting on September 11 will be crucial in determining the direction of interest rates, with market expectations of a rate cut being revised downward due to rising inflation risks.