Indian stocks experienced a significant decline on Monday as rising tensions in the Middle East, coupled with uncertainty surrounding the upcoming U.S. presidential election and the Federal Reserve's forthcoming interest-rate decision, led investors to shy away from riskier assets.
Oil prices surged nearly 3 percent during European trading hours following the decision by OPEC+ to delay increasing production slated for December by at least a month. This move was made to prioritize stabilizing prices rather than regaining market share.
Concerns have emerged that escalating crude oil prices could further exacerbate inflationary pressures and increase India's import costs.
The key S&P/BSE Sensex index dropped by 941.88 points, or 1.18 percent, closing at 78,782.24. This decline comes after the market concluded on a positive note during Samvat 2081's first trading session, known as Muhurat Trading, on Friday.
The NSE Nifty index also saw a decrease, closing 309 points lower, or 1.27 percent down, at 23,995.35, as widespread selling persisted.
Earlier in the trading session, the Sensex reached a low of 78,232.60, while the Nifty fell to 23,816.15, driven in large part by continuous selling activity from foreign portfolio investors.
Noteworthy decliners included BPCL, Adani Ports, Bajaj Auto, Grasim, and Hero MotoCorp, all of which recorded losses ranging from 3 to 4 percent.
