Sensex and Nifty Decline Amid Surging Crude Prices and Geopolitical Tensions The Indian benchmark equity indices, the Sensex and Nifty, experienced significant declines on Monday, May 18, 2026, amid rising crude oil prices and escalating geopolitical tensions in the Middle East. The Sensex fell 494.68 points, or 0.66 percent, to 74,743.31, while the Nifty dropped 167.85 points, or 0.71 percent, to 23,475.65. The market downturn was attributed to surging oil prices, a weakening rupee, and heightened concerns over regional conflicts. Crude oil prices surged to $111.2 per barrel, marking a 1.79 percent increase, driven by fears of disruptions in key oil supply routes, particularly the Strait of Hormuz. Analysts noted that the lack of progress in resolving tensions in the Middle East, including a drone attack on the Barakah nuclear facility in the UAE, exacerbated market anxiety. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted that the spike in Brent crude prices was linked to the absence of initiatives to secure the Strait of Hormuz. The rupee faced unprecedented pressure, slipping to a record low of 96.25 against the US dollar. Forex traders cited rising oil prices, a strong dollar, and geopolitical instability as factors undermining emerging market currencies. The rupee opened at 96.19 but weakened further to 96.25, reflecting a 44 paise decline from the previous close. This depreciation raised concerns about inflation and its impact on India’s economy, which relies heavily on oil imports. The broader market also suffered, with all Nifty sectoral indices trading in the red, except for Nifty IT, which rose marginally. The Nifty Smallcap100 and Nifty Midcap100 indices fell 2.24 percent and 1.63 percent, respectively.#nifty #strait_of_hormuz #sensex #geojit_investments #indian_benchmark_equity_indices
