The BSE Sensex was trading 808 points, or 0.98%, lower at 81,599, while the Nifty50 slipped 217 points, or 0.87%, to 24,895 around 9:40 am.
The market capitalisation of all listed companies on the BSE declined by nearly Rs 2 lakh crore to Rs 44.75 lakh crore in early trade.
Sector-wise, Nifty IT fell over 1% amid concerns over continued weakness in global tech spending, after Accenture reported its third consecutive year-on-year decline in outsourcing orders. Nifty Bank, Financial Services, Auto, FMCG, and Consumer Durables also opened 0.5% to 1% lower.
Key factors behind today’s market decline:
1) Spike in crude prices after US strikes on Iran
Markets came under pressure after crude oil prices surged to their highest levels since January, following U.S. airstrikes on key Iranian nuclear sites. Brent crude rose $1.33 (1.76%) to $76.79 a barrel as of 9:05 AM IST, while WTI gained $1.39 (1.88%) to $75.26. Earlier in the session, Brent had touched $81.40 and WTI $78.40 — both five-month highs — before paring gains.The rally was triggered after U.S. President Donald Trump confirmed a joint strike with Israel targeting Iran’s main nuclear facilities. The escalation raised concerns of a wider Middle East conflict, with Iran vowing to retaliate.
As Iran is OPEC’s third-largest oil producer, fears intensified over a potential closure of the Strait of Hormuz — a vital chokepoint that handles nearly 20% of global crude shipments. Iran’s Press TV reported that its parliament approved a measure to block the strait, though such threats have not materialized in the past.
2) Weakness in IT stocks after Accenture sell-off
The Nifty IT index fell over 1% in early trade on Monday, weighed down by Infosys, HCL Tech, OFSS, and TCS, after Accenture shares slumped 7% in U.S. trading on Friday. The fall came despite the company beating revenue estimates for Q3, raising concerns about future demand and sector sentiment.
Accenture reported revenue of $17.7 billion for the quarter ended May 31, ahead of the $17.3 billion estimate. The growth was supported by enterprise demand for AI-driven services. However, the sharp decline in share price highlighted investor concerns over declining margins and a muted outlook across key business verticals.
Accenture also flagged a weak U.S. federal contracting environment amid spending cuts under the Trump administration, adding to investor unease.