“Dalal Street selloff fears intensified Monday morning after Iran-US tensions pushed crude oil prices above $104 a barrel.“
Indian markets headed toward a weak start Monday after crude oil prices surged above $104 a barrel and foreign investors pulled more than ₹4,100 crores from equities, adding pressure on the rupee and banking stocks.
GIFT NIFTY futures dropped nearly 180 points to 24,055 before the opening bell, tracking losses across Asian markets after tensions between Iran and the United States escalated over the weekend. The selloff followed reports that Tehran rejected parts of a US proposal tied to regional security and sanctions relief.
US President Donald Trump reacted sharply online, calling Iran’s response “TOTALLY UNACCEPTABLE!”
The market reaction was immediate.
The SENSEX had already fallen 516 points Friday to close at 77,328, while NIFTY50 slipped 150 points to 24,176 after touching an intraday low of 24,127. Foreign institutional investors sold shares worth ₹4,110.60 crore, according to NSE data, while domestic institutions bought ₹6,748.13 crore worth of equities to absorb the pressure.
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Oil, Rupee and FIIs Back in Focus
Brent crude crossing the $104 mark has renewed fears around India’s import bill and inflation outlook. India imports more than 85% of its crude requirements, making the economy highly sensitive to disruptions in West Asia.
Reports of the rupee weakened toward the 95-per-dollar mark as oil prices climbed and traders anticipated further dollar demand from importers. The Strait of Hormuz remains central to investor anxiety. Nearly one-fifth of global oil supply passes through the narrow shipping route.
Prime Minister Narendra Modi also added to the debate after urging citizens to reduce fuel consumption and revive work-from-home practices where possible to conserve energy.
Banks, Industrials Under Pressure
Banking shares remained weak after disappointing reactions to State Bank of India earnings, while several companies flagged geopolitical risks in quarterly updates.
Pidilite Industries said raw material inflation linked to tensions in West Asia could force another price increase. NALCO warned exports to the region were being affected, while Titan Company said it was relying on contingency sourcing plans to manage gold supply disruptions.
Analysts are now watching whether NIFTY can hold the 24,000 mark. A sustained fall below that level could deepen the correction if oil prices continue climbing this week.
For more updates follow: First Report News
