Indian Shares Fall Sharply As Rupee Hits Record Low Of 93.98 Against U.S. Dollar

Indian stock markets fell significantly on Monday and the rupee dropped to a record low of 93.98 against the U.S. dollar, tracking global market weakness amid ongoing conflict in West Asia, according to Reuters.

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The Nifty 50 declined 2.6% to 22,512.65, while the Sensex fell 2.46% to 72,696.39 during the session. Both indices have fallen 10.6% each since the conflict began at the end of February, reflecting sustained selling pressure in domestic equities.

Broad-Based Selling Across Sectors

All the 16 major sectoral indices on the National Stock Exchange were down. The Mid Cap index and Small Cap index were down by 3.9% each. The volatility index touched a high of 27.17 during the session. This is the highest it has been since early June 2024.

In terms of specific stocks, HDFC Bank shares have declined by approximately 4.7% during the session. They have declined by approximately 11.7% over the past three sessions following the resignation of the part-time chairman of the company. The Metal index declined by 4.8% following weakness in commodity prices.

Rupee Weakens Amid Oil Prices And Outflows

The rupee’s fall to 93.98 against the U.S. dollar comes amid continued pressure from rising crude oil prices and foreign capital outflows. According to Reuters, foreign investors have pulled out nearly $10 billion from Indian equities in March.

Brent crude oil prices remained elevated near $113 per barrel, increasing concerns over India’s import bill. India imports a large part of its crude oil needs, and hence its currency is sensitive to changes in oil prices.

Global Markets Under Pressure

Meanwhile, Asian markets declined 3.6%, while European stocks touched a four-month low.. The conflict is affecting energy supply expectations, thus raising oil prices and causing volatility in global financial markets.

Market Movement Reflects External Pressures

The impact of high oil prices, foreign outflows, and global market pressures is reflected in the sharp fall in Indian equities and rupee values.

Market data suggests that both Indian equities and the rupee values are under pressure since the end of February. We're seeing declines across different sectors and indices.