Indian stocks fall 1% as crude rebound, FII selling weigh on Sensex, Nifty

Indian stock markets fell over 1% on Monday, with the Sensex down 877.85 points (1.19%) at 73,017.89 and the Nifty dropping 281.45 points (1.22%) to 22,859.05, driven by rising crude oil prices amid a US-Iran stalemate. Brent crude futures climbed 2% to about $106.5 per barrel, raising concerns for India, the world's third-largest crude importer, as higher prices can stoke inflation, increase the import bill, and drag corporate margins. Geopolitical tensions escalated after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, while Iran insisted only diplomacy can resolve the conflict. Additionally, Foreign Institutional Investors (FIIs) extended their selling for a second consecutive session on Friday, offloading equities worth Rs 3,696 crore. Technical analyst Hariselvan Radhakrishnan of HST Wealth noted that Nifty must defend 23,000 to preserve a potential bounce, with a breakdown possibly extending declines toward 22,600–22,580, where the 200-week SMA sits, followed by 22,400. Resistance is placed at 23,300 and 23,500, with the structure remaining sell-on-rise 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 relief to the Nifty.