The Indian stock market reversed its recent upward momentum on Monday, with the benchmark Sensex and Nifty 50 closing lower as investors booked profits.
The sell-off was driven by a rise in crude oil prices, which intensified following renewed geopolitical tensions in the Middle East.
The decline marked the end of a two-session winning streak for the indices.
The pressure on equities comes as higher energy costs threaten to dampen corporate margins and consumer spending.
Traders are closely monitoring the trajectory of oil prices, which have become a key variable in the current market regime.
The volatility underscores the sensitivity of emerging market equities to external supply shocks and geopolitical instability.