Indian equity markets and the rupee came under pressure on Monday as a spike in crude oil prices and heightened geopolitical tensions weighed on investor sentiment, according to a Business Today report.
Market Indices Hit
The Sensex fell 443 points or 0.6% to close at 77,709, while the Nifty declined 96 points or 0.4% to 24,239, as per the report. The decline was broad-based but led by financials.
| Index | Change (points) | Change (%) | Close |
|---|---|---|---|
| Sensex | -443 | -0.6% | 77,709 |
| Nifty | -96 | -0.4% | 24,239 |
Banking Stocks Drag
Banking stocks were the biggest drag on the indices. Axis Bank dropped 5.5%, HDFC Bank fell 5.1%, and Kotak Mahindra Bank declined 2%. Maruti Suzuki India also fell 2.2%, adding to the pressure.
However, strong buying in ICICI Bank, SBI, and other PSU banks helped the Bank Nifty recover from its lows, said Vatsal Bhuva, analyst at LKP Securities. "Bank Nifty witnessed selling pressure during Monday's session as heavyweight private lenders such as HDFC Bank, Axis Bank and Kotak Bank declined sharply. However, strong buying interest in ICICI Bank, SBI and other PSU banks helped the index recover from lower levels," Bhuva was quoted as saying.
| Stock | Decline (%) |
|---|---|
| Axis Bank | -5.5% |
| HDFC Bank | -5.1% |
| Kotak Mahindra Bank | -2.0% |
| Maruti Suzuki India | -2.2% |
Rupee Under Pressure
The Indian rupee weakened against the US dollar, slipping 17 paise to close at 96.45 from the previous close of 96.28, according to the report. During intraday trade, the rupee breached the 96.5 level. Traders cited rising oil prices and geopolitical tensions as key factors. Additionally, concerns that mobilisation under the FCNR(B) window may take longer than expected also weighed on the currency.
The rupee remains close to its record low of 96.96 hit on May 20, 2026, when Brent crude had touched $110 per barrel.
Oil Spike and Geopolitical Context
Crude oil prices rose to a one-month high during the day. Brent North Sea crude briefly crossed $91 per barrel after tensions between the US and Iran raised fears of disruption in the Strait of Hormuz, before easing later in the session, the report said.
Vinod Nair of Geojit Investments commented that tensions in West Asia are expected to persist in the near term as US military actions expand and global travel advisories for US citizens remain in place.
The combination of a weakening rupee and rising oil prices poses a challenge for India's trade deficit and inflation outlook, though the report did not quantify these impacts. Investors will likely monitor further developments in the Iran-US standoff and upcoming central bank moves.
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