Hormuz Blockade Triggers Global Energy Shock; Indian Equities Slide

Indian equity markets faced significant selling pressure on Monday as geopolitical tensions escalated in the Middle East. The downturn followed an announcement by U.S. President Donald Trump to blockade all shipping traffic entering or exiting the Strait of Hormuz, a critical artery for global energy supplies. The blockade order coincides with the collapse of weekend negotiations between the United States and Iran. The failure to reach an agreement to end six weeks of active warfare has heightened investor anxiety regarding the duration and intensity of the conflict, which has now entered its second month. Commodity markets reacted violently to the news, with Brent crude prices surging nearly 8% to approximately $103 per barrel during Asian trading. This spike in energy costs has raised concerns over inflationary pressures and supply chain disruptions across the globe. In India, the BSE Sensex dropped 702.68 points, or 0.91%, to close at 76,847.57, while the Nifty index settled 0.86% lower at 23,842.65. Broad-based selling hit heavyweights including Reliance Industries, HDFC Bank, and TCS, with several prominent stocks declining between 2% and 5%. The Asian Development Bank has warned that Asian economies may face a growth slowdown due to the instability, regardless of whether oil prices remain relatively stable. Market breadth remained weak, with over 2,500 shares falling on the BSE.