Sensex plunged over 1,300 points, what analysts are saying

Indian equities indices closed lower for the second straight session on Monday, as escalating global tensions and strong selling pressure caused benchmark indices to close significantly lower.

The Sensex plunged 1,352.74 points or 1.71 per cent at 77,566.16. While the Nifty declined 422.40 points or 1.73 per cent at 24,028.05.

While speaking with The Tribune, Anush Raajan, Founder, Chambers of V Anush Raajan, said with the Strait of Hormuz effectively shut, global crude oil flows have been severely constrained, impacting more than a fifth of the world’s oil shipments. This supply shock has already translated into a jump of over 20 per cent in international crude benchmarks, and Asian stock markets have reacted swiftly, correcting in the range of 2 to 7 per cent.

“In such conditions, speculative trading is particularly vulnerable to sudden reversals and heightened volatility. For industries heavily reliant on crude oil — such as petrochemicals, tyres, transport, and energy — it is also an opportune, if difficult, moment to revisit long-term supply and production contracts,” he said.

Hitesh Tailor, Technical Research Analyst at Choice Broking, feels the selling pressure intensified through the session, dragging the index to an intraday low of 76,424.55, with banking, auto, metals, and infrastructure stocks leading the broad-based decline.

“Going ahead, the 75,200-75,500 zone now emerges as a crucial support area where some dip buying or short covering may emerge. On the upside, 77,800-78,000 is likely to act as immediate resistance,” he said.

Ankit Agarwal, MD, Alankit Limited, thinks that surging crude oil prices, which have crossed USD 115 per barrel, have revived inflation concerns and led to aggressive selling by foreign institutional investors. Sectors such as oil marketing companies, aviation, and automobiles faced significant pressure as investors shifted toward safer assets.

“As the situation in the Strait of Hormuz remains uncertain, volatility is likely to persist in the near term. Long-term investors, however, should look beyond short-term market reactions,” he said.

Om Ghawalkar, Market Analyst, Share.Market (PhonePe Wealth), said this is a good time to identify stocks that are currently trading at discounted rates but maintain strong business fundamentals. The goal is not to predict the exact bottom of the market but to wait for signs of a clear reversal.

Yohan Poonawalla, Chairman of Poonawalla Group, adds that the global capital flows may adjust amid heightened geopolitical risk, disciplined investors recognise that corrections often create selective entry opportunities rather than systemic distress. At moments like these, liquidity management, calibrated capital deployment and long term conviction become paramount.