Sensex Sinks 500 Points, Nifty Near 24,000

Sensex, Nifty Today: Indian benchmark indices faced sharp losses on Monday, with the Sensex falling nearly 500 points and the Nifty moving towards 24,000, as renewed US-Iran tensions pushed crude oil prices higher. Weak global cues and continued FPI selling further weighed on sentiment. All Nifty sectoral indices traded in the red, while the Nifty Midcap 100 and Smallcap 100 declined around 1% each. Key Factors Behind the Fall 1) Rising crude prices: Escalating US-Iran tensions raised concerns over oil supply disruptions, sending Brent crude up 2.33% to around $90.19 a barrel. Higher oil prices could intensify inflationary pressures and widen India’s import burden. 2) Fed rate hike concerns: Expectations of a possible September US Fed rate hike strengthened, lifting Treasury yields and the dollar. Recent comments by Fed Chair Kevin Warsh reinforced expectations of tighter monetary policy, potentially keeping foreign investors cautious towards emerging markets. 3) Weak global sentiment: Heightened geopolitical risks, elevated crude prices and interest-rate uncertainty kept global risk appetite subdued, adding to domestic selling pressure. Investors will track US-Iran developments, crude prices, US bond yields and FPI flows for further market direction. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.