Indian equities suffered heavy losses on Monday as crude oil prices surged above $115 per barrel, raising fears of higher input costs and renewed inflationary pressures.
Crude-sensitive sectors bore the brunt of the sell-off. Among the top losers, IndiGo (InterGlobe Aviation) shares plunged over 7%, while SpiceJet fell about 6% in early trade. Tyre makers such as JK Tyre and Apollo Tyres dropped 6.5% and 4%, respectively, amid concerns over rising raw material and fuel costs. Paint companies, which rely heavily on crude derivatives, also declined, with Asian Paints slipping over 4% and Berger Paints, Kansai Nerolac, and Akzo Nobel India falling 3–4%.
At 09:25 am, the Sensex was down about 2,401 points, or 3.04%, at 76,517, while the Nifty fell nearly 727 points, or 2.97%, to 23,723. Market breadth was sharply negative, with over 2,600 stocks declining versus around 537 advancing on the NSE.
The sell-off followed a dramatic surge in global crude prices amid the escalation of the U.S.-Israeli conflict with Iran, raising fears of supply disruptions and shipping risks in the Strait of Hormuz, a key global oil transit route.
Analysts noted that sectors with high crude-linked input costs — including airlines, tyre manufacturers, and paint companies — are typically among the first to react to sharp oil price spikes, as higher fuel and petrochemical costs can directly squeeze margins.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “Brent crude has spiked above $115, delivering a major oil shock to economies and markets. Big oil importers like India will be hit hard if the West Asian conflict lingers and crude prices remain elevated. Markets are pricing in the economic consequences of this shock.”
He added that the spike in crude is likely to push inflation higher, potentially complicating the outlook for interest rates and economic growth.
The broader market risk-off mood also affected other heavyweights such as Maruti Suzuki, Larsen & Toubro, and State Bank of India, while volatility surged, with the India VIX jumping over 20%, signalling heightened investor nervousness.
Analysts warned that if crude prices remain high for a prolonged period, fuel- and petrochemical-dependent sectors could continue to face pressure, keeping broader markets volatile.