IndiGo (InterGlobe Aviation) and Larsen & Toubro shares slipped sharply in early trade on Monday as investors sold crude-sensitive and Middle East-linked stocks amid a jump in oil prices linked to the escalating US-Iran conflict. Volatility spiked, while select defensive and metal shares outperformed.
At 09:45 am, the Nifty was down 213.8 points, or 0.9 percent, at 24,964.9 and the Sensex was down 724.1 points at 80,563.1. India VIX surged 15.91 percent to 15.88. The benchmarks recovered from steeper opening losses.
InterGlobe Aviation shares fell 3.66 percent, leading the Nifty losers as higher crude prices raised concerns over operating costs and input inflation. L&T, which derives a significant revenue from business activities in the Middle East region, declined 3.63 percent. Asian Paints stock also dropped 2.65 percent. Adani Ports (down 2.09 percent) and Adani Enterprises (down 1.98 percent) remained under pressure. Bajaj Finance, Jio Financial, Bajaj Auto and Maruti Suzuki were also among the laggards, falling 1-2 percent each.
The common thread among several of the laggards was crude oil sensitivity. Aviation companies face immediate fuel cost pressures when crude rises, while paint makers such as Asian Paints are exposed to crude-linked raw materials. Infrastructure and port operators, including L&T and Adani Ports, are seen as vulnerable to disruptions in trade flows and shipping routes amid geopolitical instability.
Brent crude had surged sharply overnight before paring some gains, but remained elevated near recent highs. Traders said markets are increasingly shifting to an “oil-driven” narrative, with inflation risks, bond yields and corporate margins coming back into focus if energy prices remain firm.
On the other hand, Bharat Electronics stock gained 2.14 percent to top the Nifty gainers, followed by Hindalco (up 1.71 percent) and Tata Steel (up 0.76 percent). ONGC traded higher as well, with oil-linked counters drawing support from firmer crude prices. Upstream energy producers typically benefit from higher realisations when crude prices rise.
Sectorally, Nifty Metal was in the green, while Nifty Realty, Infra, Auto and FMCG indices traded lower. The Nifty Oil & Gas and Energy indices were also under pressure despite gains in select upstream names, reflecting weakness in downstream and consumption-linked players.
Market breadth remained decisively negative, with declines far outpacing advances on the NSE. Analysts said elevated volatility and global risk aversion could keep stock-specific moves sharp through the session, especially in sectors directly exposed to crude oil.
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