Sensex down 900 pts, Nifty near 22,850: Rebound in crude prices among key factors behind market decline

The latest market report highlights that The equity shares traded softer on Monday, with market participants ​remaining wary as crude prices rose following a stalemate in ​US-Iran peace talks.

At around 9:40 a.m., the Sensex was down 877.85 points or 1.19 percent at 73,017.89, while the broader Nifty declined to 22,859.05, down 281.45 points or 1.22 percent.

Key factors behind market slide

1) Climb in oil price marks: Brent ​crude futures ​advanced 2% ⁠to around $106.5 per barrel. India, ​which is the world's third-largest ​crude ⁠importer, stays vulnerable to elevated prices as they can stoke inflation, raise the ⁠import ​bill, and drag corporate ​margins.

2) Geopolitical concerns: US President Donald Trump ​stated he had rejected an Iranian proposal ⁠to reopen the Strait of Hormuz ​and end fighting, while Iran insisted ​on Sunday that only diplomacy can solve its conflict with the United States and Israel.

3) FII selling: FIIs extended their selling for a second consecutive session on Friday, offloading equities worth Rs 3,696 crore.

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a SEBI-registered Research Market observer firm, noted that the Nifty must defend 23,000 to preserve the possibility of a mean-reversion bounce. A breakdown could extend the slide toward 22,600–22,580, where the 200-week SMA is positioned, followed by 22,400. Resistance is placed at 23,300 and 23,500; the structure stays sell-on-climb unless 23,500 is reclaimed. Bank Nifty is approaching its 100-week SMA near 55,175, and its ability to hold this level may determine whether financials provide the Nifty with some relief.