New Delhi [India], September 28 : The stock markets in the country witnessed sharp selling on Monday, with both benchmark indices falling more than 1.5 per cent as rising crude oil prices, elevated US bond yields and a weakening rupee heightened concerns over inflation and global fund flows.
The Nifty 50 closed at 22,780.25, declining 360.25 points or 1.56 per cent, while the BSE Sensex ended at 72,771.72, down 1,124.02 points or 1.52 per cent.
The sell-off was broad-based, with almost all sectoral indices on the NSE closing in the red. The Nifty PSU Bank index was among the worst hit, plunging more than 3.20 per cent. Nifty Metal declined 1.90 per cent, Nifty Oil and Gas fell 1.97 per cent, while Nifty Realty lost 2.32 per cent.
Nifty Auto declined 1.74 per cent, Nifty FMCG fell 1.38 per cent, and Nifty IT slipped 0.09 per cent by the close.
Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said the sharp sell-off reflected a combination of global macro pressures rather than purely domestic weakness.
“With Brent crude moving above USD 106, US 10-year yields near 5.2 per cent and the rupee weakening towards Rs 96 per dollar, concerns around inflation, import costs and emerging-market flows have intensified,” Kasat said.
Brent crude prices surged more than 3 per cent on Monday to USD 107.88 per barrel at the time of reporting, adding to concerns over higher energy costs for oil-importing economies such as India.
Kasat said a sustained rise in crude prices or further foreign institutional investor outflows could keep market volatility elevated. At the same time, any easing in US-Iran tensions, crude prices or bond yields could provide room for stabilisation.
He added that investors should remain selective and focus on earnings visibility and balance-sheet strength.
The pressure was also visible among individual stocks, with only Dr Reddy's and Infosys emerging as gainers in the Nifty 50 pack. Jio Finance, Adani Enterprises, TMPV, Tata Consumer and Bajaj Auto were among the top losers.
Commodity markets also witnessed weakness. Gold prices declined more than 2.5 per cent to Rs 1,47,100 per 10 grams for 24 karat at the time of reporting, while silver prices fell 3.25 per cent to Rs 2,26,988 per kg.
N S Ramaswamy, Head of Commodity & CRM at Ventura, said Brent crude November futures had moved back above USD 106 per barrel amid renewed concerns over prolonged disruptions to oil supplies from the Middle East.
He said, “Market sentiment has been supported by uncertainty around the Strait of Hormuz after U.S. President Donald Trump rejected Iran’s proposal to reopen the key shipping route, while Iran continues to await a clear U.S. response. Meanwhile, tensions between Saudi Arabia and the Houthis remain elevated, with Saudi Arabia intercepting drones amid renewed security concerns”.  
On crude prices, Ramaswamy said the immediate resistance was placed at USD 108-109 per barrel. A sustained break above this zone could open the way towards USD 112 and USD 115, while immediate support was seen at USD 104, USD 101 and USD 97.
Asian markets were mixed. Japan's Nikkei 225 declined 0.20 per cent to close at 66,230, while South Korea's KOSPI fell sharply by 2.77 per cent to 6,889. Singapore's Straits Times rose 0.31 per cent to 5,729, while Hong Kong's Hang Seng gained 0.47 per cent to close at 24,626.