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Sensex Tumbles 700 Points as Brent Crude Tops $108
Indian share prices fell sharply on September 11.
The Sensex dropped 700 points, and the Nifty also went down.
Brent crude oil became more expensive, rising above $108.
Higher oil prices can put pressure on Indian companies and the wider market.
Analyst G. Chokkalingam also pointed to poor rainfall and many new IPOs as reasons for weakness.
He expects the market may stay weak next week because large IPOs are coming.
He said markets could recover if the United States and Iran begin negotiations.
A possible drop in oil prices could also help Indian shares.
The Sensex fell 700 points, while the Nifty also declined on September 11.
Brent crude oil prices rose above $108, adding pressure to Indian equities.
Analyst G. Chokkalingam cited elevated oil prices, poor rainfall and a continuing IPO boom as factors weakening the market.
He expects Indian markets to remain weak next week as major IPOs are expected to enter the market.
Chokkalingam said markets could recover if major countries push the United States and Iran toward negotiations, potentially helping oil prices correct.
- Who
- The Indian equity market and analyst G. Chokkalingam of Equinomics Research.
- What
- The Sensex fell 700 points and the Nifty declined as Brent crude rose above $108.
- Where
- India's domestic equity market.
- When
- September 11; the analyst also discussed expectations for the following week and September.
- Why
- Elevated oil prices, poor rainfall and continued IPO activity were cited as causes of weakness; potential negotiations between the United States and Iran could support a recovery.
Key facts
- Sensex move
- Down 700 points
- Nifty
- Declined
- Brent crude
- Rose above $108
- Market outlook
- Expected to remain weak next week
- Cited pressures
- Elevated oil prices, poor rainfall and continued IPOs
- Possible recovery trigger
- Negotiations between the United States and Iran that could lead to lower oil prices
- Analyst
- G. Chokkalingam, Head of Research at Equinomics Research
Quotes
G. Chokkalingam
Head of Research at Equinomics Research
“the domestic equity market is likely to be weak today due to elevated oil prices, poor rainfall and continued boom in IPOs. Next week also market is likely to be quite weak as mega IPOs are expected to hit the markets soon.”
timesnownews.com
Sources
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