India mcap hits 11-month low as oil surge, middle east tensions weigh on equities

markets

• India's market cap fell to $4.85T, lowest in 11 months
• Sensex closed below 80,000, Nifty below 24,500 after losses
• Rising oil prices and Middle East tensions hit Indian equities

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India’s total market capitalization fell to an 11-month low after continued selling pressure in domestic equities, as escalating tensions in the Middle East pushed oil prices higher and weighed on energy-import dependent economies.

The mcap of all companies listed on the BSE closed at about $4.85 trillion, down 2.7 percent from the previous close of $4.99 trillion. The decline marked both the lowest closing level and the steepest fall since April 2025.

Both benchmark indices extended losses for a fourth straight session. The Sensex closed below the 80,000 mark for the first time since April 2025, while the Nifty ended below the 24,500 level for the first time since August 2025.

Indian equities have faced sustained selling pressure since the start of 2026 amid weaker earnings growth expectations and limited exposure to artificial intelligence-related stocks, which have driven gains in several global markets.

The recent surge in crude oil prices — India’s largest import — has also dampened a nascent recovery in equities following progress in a trade deal between India and the United States.

Global risk sentiment remained fragile amid ongoing tensions in the Middle East and the closure of the Strait of Hormuz, a key route for global energy shipments, keeping oil prices volatile. Indian equities mirrored the broader risk-off environment amid concerns that higher oil prices could raise inflation and widen the current account deficit.

The continued depreciation of the Indian rupee remains a key concern, while incremental foreign outflows have added to near-term volatility in domestic equities.

Experts said the Nifty is currently sliding toward an important support zone of 24,300–24,100, which corresponds to previous swing lows and an unfilled gap from May 12. They added that the index could see a reasonable upside bounce from these levels in the near term, with immediate resistance placed around 24,600.