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The Indian stock market began the week on a weak note as investors reacted to a combination of rising oil prices, geopolitical uncertainty and persistent foreign fund outflows.
The BSE Sensex declined 851.82 points, or 1.15%, to 73,043.92, while the Nifty 50 fell 277.55 points, or 1.20%, to 22,863.05 during early trading on Monday. The decline extended a losing streak that has already seen both benchmark indices fall for seven consecutive sessions.
At around 9:30 am, all 30 companies in the Sensex pack were trading in negative territory, indicating broad-based selling pressure across large-cap stocks.
Among the major laggards were Bajaj Finance, Kotak Mahindra Bank, HDFC Bank, Bajaj Finserv, Mahindra & Mahindra and Hindustan Unilever.
One of the key factors affecting Indian equity markets was the rise in crude oil prices. Brent crude futures climbed around 1.5% to approximately $106 per barrel.
Higher crude prices are particularly important for India because the country depends heavily on imported oil. A prolonged increase in energy costs can raise the nation's import bill and potentially add pressure to inflation, the rupee and corporate margins.
Oil prices have remained volatile amid continuing tensions in the Middle East and uncertainty surrounding diplomatic efforts involving the United States and Iran.
Foreign portfolio investor (FPI) selling has also remained a major pressure point for Dalal Street.
According to provisional data cited in the Times of India report, foreign investors sold Indian equities worth approximately ₹3,694 crore ($385.54 million) on Friday. Their September selling had reached about $1.8 billion, while total selling for 2026 stood at approximately $25.86 billion.
Market participants are also watching movements in global bond yields and the US dollar following the latest US Federal Reserve policy decision, as changes in global interest-rate expectations can influence flows into emerging markets.
Several economic and market indicators are expected to remain in focus during the week, including India's August industrial production data, the HSBC manufacturing PMI, monthly automobile sales and foreign institutional investor activity.
Global markets will also be influenced by upcoming US economic data and developments surrounding crude oil and Middle East diplomacy.
For Indian investors, the combination of Nifty 50 volatility, crude oil prices, FII selling, rupee movement and global interest rates is likely to remain important for market sentiment in the near term.
