1 hr ago
Indian stocks slip as crude, Iran tensions fuel rate fears
Indian share prices fell at the start of trading on Monday.
The Sensex and Nifty, two important stock-market measures, both declined.
Investors were worried because oil prices were rising.
They were also concerned about worsening fighting involving the United States and Iran.
Higher oil prices can create pressure for businesses and economies.
A strong US jobs report raised fears that US interest rates could rise.
Higher rates can make investors more cautious about buying shares.
Investors are now watching US inflation figures expected on Friday.
Those figures may affect expectations about the Federal Reserve’s next decisions.
The Sensex fell 172.77 points to 76,342.66 in early trade, while the Nifty dropped 63.30 points to 23,832.60.
Rising crude prices, intensified US-Iran hostilities and concerns about a possible US rate hike pressured investor sentiment.
Brent crude rose 0.78% to about USD 97 per barrel, while WTI traded around USD 91–92.
Infosys, Tech Mahindra, HCL Tech, Tata Steel, Tata Consultancy Services and UltraTech Cement were among the major laggards.
Foreign Institutional Investors sold equities worth Rs 3,111.94 crore on Friday; US inflation data due Friday is the next major market catalyst.
- Who
- Indian stock-market investors, companies listed on the BSE and NSE, and Foreign Institutional Investors were involved in the market activity.
- What
- The Sensex and Nifty fell in early trade as crude prices, US-Iran hostilities and possible US interest-rate increases weighed on sentiment.
- Where
- Indian stock markets, with global influences from the United States, Iran and Asian markets.
- When
- Monday’s early trading session; the next major catalyst is US inflation data expected on Friday.
- Why
- Investors reacted to elevated oil prices, concerns about supply disruptions, a stronger-than-expected US jobs report and possible US monetary tightening.
Key facts
- Sensex early level
- 76,342.66, down 172.77 points
- Nifty early level
- 23,832.60, down 63.30 points
- Brent crude
- Up 0.78% at about USD 97 per barrel
- WTI crude
- Trading around USD 91–92 per barrel
- Foreign investor sales
- Foreign Institutional Investors sold equities worth Rs 3,111.94 crore on Friday
- Next market catalyst
- US inflation data expected on Friday
- Previous close
- The Sensex rose 362.57 points and the Nifty rose 24.25 points on Friday
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth, a research analyst firm
“Crude oil remains the dominant macro driver. WTI continues to trade at elevated levels around USD 91–92 per barrel as the latest escalation in US-Iran hostilities around the Strait of Hormuz keeps concerns over potential supply disruptions firmly in focus.”
telegraphindia.com
“Friday's US jobs report came in far stronger than expected, reviving concerns over a possible interest-rate hike, while fresh attacks in the US-Iran conflict are keeping oil prices at elevated levels, posing a key overhang for domestic investor sentiment.”
telegraphindia.com
Sources
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