Sensex, Nifty Hit Six-Month Lows as Global Fears Rise

Indian stocks fell sharply and reached their lowest levels in about six months.

The market’s fear indicator, India VIX, also increased.

Oil became more expensive after Donald Trump rejected a possible peace agreement involving Iran.

Costlier oil can worry investors because it may increase inflation.

The US dollar strengthened, which often makes emerging-market stocks less attractive.

Foreign investors sold a large amount of Indian shares.

Higher bond yields also made bonds more appealing compared with stocks.

Investors are additionally worried that central banks may raise interest rates to control inflation.