Rising crude and global uncertainty push Indian equities into red zone

Indian equity markets started the week on a negative note with both major benchmarks falling sharply The decline came as investors reacted to rising geopolitical tensions increasing crude oil prices and concerns over foreign exchange outflowsAt the opening bell the BSE Sensex stood at 7637803 down by 95016 points 123 per cent The NIFTY 50 also slipped to 2390025 falling 27590 points 114 per cent reported ANISectorally all indices traded in the red with Nifty Consumer Durables Nifty Auto Nifty PSU Bank Nifty Private Bank Nifty Oil and Gas and Nifty Chemicals falling up to nearly 3 per cent as per IANSAmong Nifty stocks Titan IndiGo MandM Shriram Finance Eternal Maruti Suzuki Bajaj Auto Bajaj Finserv Bharti Airtel HDFC Life Eicher Motors and Dr Reddyrsquos Laboratories were among the top laggardsPM Modirsquos appeal impacts market sentimentInvestor sentiment was also affected after Prime Minister Narendra Modi urged citizens to reduce unnecessary foreign spendingHe asked people to avoid foreign travel overseas weddings and nonessential gold purchases for one year to help conserve foreign exchange reserves This appeal reflects a crisismanagement response to rising pressure on the current account deficit due to elevated crude prices said an expert as per IANS reportsThis also led to a sharp reaction in the jewellery sectorJewellery stocks take a hitThe jewellery industry saw heavy selling pressure following the remarksSenco Gold fell 898 per cent to Rs 33260Titan Company dropped 534 per cent to Rs 426810Kalyan Jewellers India declined 743 per cent to Rs 39300PC Jeweller slipped 389 per cent to Rs 913The sharp fall reflected concerns over reduced consumer demand in the near term as per ANI reportsExperts point to multiple global risksBanking and market expert Ajay Bagga said geopolitical tensions and energy concerns are weighing heavily on marketsHe noted that energy and forex challenges are becoming increasingly important for Indiarsquos economy India is a different story and the PM in a public gathering spoke of the energy supply and price challenges for the Indian economy and the need to take measures to reduce energy dependence and imports while conserving foreign exchange Indian markets are pointing to a weak openOil prices and inflation worries persistBagga also spoke about the cost of insulating oil prices in IndiaExpectations of petrol and diesel price hikes this week are high as OMC losses are running at Rs 30000 crores per month reported ANIFurthermore US President Donald Trumprsquos strong remarks calling Iranrsquos response ldquototally unacceptablerdquo have reduced hopes of easing the USIran conflict This has also dimmed expectations of smoother oil flows through the Strait of HormuzSujan Hajra Chief Economist at Anand Rathi said the economy remains resilient but external pressures are buildingHe said ldquoGrowth is holding up but global risks are beginning to make resilience more expensive Higher crude prices and trade route disruptions are keeping inflation concerns alive as per ANIMixed global cues higher volatilityWhile Indian markets have shown strength in recent months analysts expect volatility to continue due to global uncertainty oil price movements and geopolitical developmentsAsian markets were mixed with Japan and Hong Kong lower while South Korearsquos KOSPI rose over 4 pc Meanwhile the India VIX rose nearly 2 pc signalling increased market uncertaintyWith ANI and IANS Inputs