West Asia conflict keeps mkts on edge

Indices recoup losses as oil supply concerns ease

- SUNDAR SETHURAMAN

Indian equities fell over 1 per cent on Monday amid fears that escalating tensions between the US and Iran could disrupt global oil supplies. But markets pared half their losses later in the day as Brent crude retreated from a five-month high, easing concerns about a potential supply shock.

The Sensex dropped nearly 931 points (1.1 per cent) intraday before closing at 81,897, down 511 points (0.6 per cent). The Nifty settled at 24,972, declining 140 points (0.6 per cent). Foreign portfolio investors (FPIs) were net sellers to the tune of ₹1,874 crore, while domestic institutions provided buying support worth ₹5,592 crore.

Brent crude surged to $77 per barrel—its highest level in five months—after the US launched strikes on Iran's nuclear facilities over the weekend, stoking fears of a prolonged conflict. Prices later eased to $76 as Iran showed no immediate signs of disrupting shipments through the Strait of Hormuz, a critical chokepoint for a fifth of the world's oil supply.