Sensex Falls on Higher Oil Prices

India’s BSE Sensex fell about 0.8% to 77,504 at the open on Monday, reversing the gains in the last session as investors turned cautious amid a rise in crude oil prices and escalating geopolitical tensions in the Middle East. Market sentiment was also weighed by concerns that higher energy costs could stoke inflation and squeeze corporate margins. The decline came despite stronger-than-expected earnings from heavyweights Reliance Industries and ICICI Bank. Meanwhile, investors also tracked the rupee and bond markets, as currency stability and foreign fund flows remained key factors for Indian equities. Expectations of RBI action to curb volatility and progress on India’s inclusion in global bond indexes were watched for their potential impact on overseas investment flows. Among the notable laggards were Axis Bank (-5.3%), HDFC Bank (-4.5%), Kotak Mahindra (-2.7%), and Cupid (2.5%). On the upside, Tatva (20%), Kross (14.7%), Bhansali Engineering (11%), and Himadri (5.4%) posted gains.




