Markets Drop as Oil Surges Past ₹120

Indian stock markets fell sharply in early trade as crude oil prices climbed above ₹120 per barrel, pressuring sectors exposed to energy costs. The Sensex saw broad-based selling, with six of its 30 component stocks leading the decline. InterGlobe Aviation, Eternal, UltraTech Cement, Mahindra & Mahindra, Axis Bank, and Adani Ports were the biggest laggards in early session trading. Higher oil prices raise input and fuel costs across aviation, cement, and auto sectors, which squeezes margins and weighs on earnings expectations. For banks like Axis, rising oil can stoke inflation fears, pushing up bond yields and increasing funding costs. Aviation is especially exposed since jet fuel is a direct operating expense tied closely to crude prices. Investors will be watching whether oil holds above this level and whether the Reserve Bank of India signals any concern about inflation passing through to the broader economy.