Dalal Street slides: Sensex sinks 1,000 points as crude spikes past $115

Benchmark indices opened the week on a weak note, tracking global uncertainty triggered by escalating tensions in the Iran region and a sharp rise in crude oil prices, which weighed on investor sentiment.

The S&P BSE Sensex dropped 1,066 points to 72,516 in early trade, while the NSE Nifty50 slipped over 300 points to hover near 22,500 levels.

Market participants remained cautious amid volatility in global commodities, with rising oil prices adding pressure on inflation expectations and corporate margins.

According to Hitesh Tailor of Choice Equity Broking, investors should stay selective and avoid chasing short-term rallies. He advised focusing on fundamentally strong stocks during meaningful corrections, adding that fresh long positions would be more prudent once Nifty sustains above the 24,000 mark — a level that could signal improving sentiment.

On the stock-specific front, defensive buying offered limited support. Bharat Electronics Limited led the early gainers, followed by Reliance Industries and Power Grid Corporation of India.

However, financial stocks dragged the market lower. Axis Bank fell sharply, while Kotak Mahindra Bank and State Bank of India also saw notable declines. Other laggards included Trent Limited and Bajaj Finserv, pointing to broad-based weakness.

Volatility spiked, with India VIX rising over 5%, reflecting heightened uncertainty. Broader markets mirrored the trend, as midcap and smallcap indices slipped over 1% each.

Sectorally, most indices traded in the red, led by banking and financial stocks. PSU banks, private banks, financial services, auto, healthcare, and pharma sectors all declined in early deals.

On the flip side, metal stocks outperformed, supported by commodity strength, while oil & gas and media indices also posted modest gains, offering some cushion to the broader market.