NEW DELHI: Indian equity markets came under pressure on Monday as a sharp rise in crude oil prices and growing expectations of a potential US Federal Reserve rate hike weighed on investor sentiment.

The Nifty 50 fell 0.68% to 24,011.48, while the BSE Sensex declined 0.58% to 76,824.45 in early trade. The sell-off was broad-based, with all 16 major sectoral indices trading lower. The IT index was among the major laggards, falling around 2%.

The market decline came as renewed tensions between the United States and Iran pushed Brent crude above $90 a barrel, raising concerns over India's import bill, inflation and corporate profitability. Brent crude was up around 2.5% in early trading.

Investor sentiment was further affected by rising US Treasury yields and expectations of tighter monetary policy after US Federal Reserve Chair Kevin Warsh indicated that inflationary pressures could require continued policy action. This has increased concerns about the possibility of a US rate hike in September.

Indian markets are also facing volatility from the latest MSCI index rebalancing, which is expected to trigger significant passive fund flows. Reliance Industries was among the stocks under pressure as its weighting in the MSCI Global Standard Index is set to decline.

With crude prices, geopolitical developments and global interest-rate expectations remaining key drivers, investors are likely to keep a close watch on overseas cues and foreign fund flows in the coming sessions.