Indian equity benchmarks witnessed a sharp sell-off in the final hour of trading on Monday, with investors rushing to book profits amid rising crude oil prices, weakness in heavyweight stocks, and cautious market sentiment. The late-session decline erased earlier gains and pushed benchmark indices to their lowest levels in nearly two months.

Key Highlights

• Sensex plunged 719 points while Nifty dropped over 1% amid broad-based late-session selling pressure.
• Rising crude prices, heavyweight stock declines and global concerns triggered sharp market weakness.

The benchmark Sensex plunged 719 points, or 0.97%, to close at 73,524.26, while the Nifty 50 dropped 243.70 points, or 1.04%, to settle at 23,123. Both indices ended the session near the day's lows after selling pressure intensified during the final 30 minutes of trade.

Heavyweight Stocks Trigger Broad Market Decline

Market participants witnessed aggressive selling in some of the index's largest constituents, including Reliance Industries, ICICI Bank, Larsen & Toubro, and Mahindra & Mahindra.

Reliance Industries fell more than 2%, extending its losing streak to nine consecutive trading sessions. As the Nifty slipped below the key 23,200 level, selling momentum accelerated, dragging the broader market lower.

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Rising Crude Oil Prices Weigh on Markets

A significant factor behind the market weakness was the continued surge in global crude oil prices. Brent crude hovered close to $97 per barrel, raising concerns over inflationary pressures, India's import bill, and corporate profitability.

Higher oil prices also impacted oil marketing companies, with shares of Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation declining up to 4% during the session.

Metal and IT Stocks Under Pressure

The metal sector emerged as the biggest laggard, reflecting concerns over global demand and commodity price volatility. Shares of National Aluminium Company declined nearly 4%.

The technology sector also remained under pressure. The Nifty IT index extended losses for the fourth straight session, while Tata Consultancy Services slipped around 2%, mirroring weakness across global technology markets.

Midcaps and Broader Market Witness Selling

The sell-off extended beyond frontline stocks, with the Midcap Index falling 849 points to 59,906. Stocks across real estate, metals, financial services, and consumer segments witnessed significant declines.

Market breadth remained weak throughout the session, with nearly three declining stocks for every advancing stock on the NSE. Out of the 50 Nifty constituents, 40 closed in negative territory.

Defensive Sectors Offer Limited Support

Despite the broad-based weakness, investors showed preference for defensive and government-linked sectors. Public sector enterprises and healthcare stocks managed to remain resilient and ended the session in positive territory.

Analysts believe market sentiment will remain sensitive to crude oil movements, global economic developments, and upcoming domestic policy cues. Investors are expected to closely monitor inflation trends, geopolitical developments, and corporate earnings for further direction in the near term.