2 hrs ago
Indian Stocks Sink as Crude Surges Amid West Asia Tensions
Indian stock markets fell sharply on Friday morning.
The Sensex and Nifty are measurements of how groups of major Indian companies are performing.
They dropped as oil prices climbed above $108 per barrel.
Higher oil prices can make it more expensive for India to buy goods from other countries.
This may increase inflation and put pressure on the rupee.
Investors were also worried because markets in several other countries were falling.
Foreign institutional investors sold Indian shares worth Rs 438.24 crore on Thursday.
Some companies, including Bajaj Finance and Tata Steel, fell, while technology companies such as Infosys gained.
Analysts said continued tensions in West Asia could keep investors cautious.
The Sensex fell 628.24 points to 74,257.69 in early Friday trading.
The Nifty dropped 221.20 points to 23,255.10.
Brent crude rose 0.95% to $108.70 per barrel, its highest level since May.
Investors were also affected by weak global markets and foreign institutional outflows.
Analysts warned that elevated oil prices could worsen India's inflation, rupee, import bill and corporate-margin pressures.
- Who
- Indian stock-market investors, benchmark indices Sensex and Nifty, foreign institutional investors, and analysts Hariselvan Radhakrishnan and Ponmudi R.
- What
- The Sensex and Nifty fell sharply in early trading as crude oil prices rose.
- Where
- Indian stock exchanges, amid weakness across Asian and US markets.
- When
- Early trading on Friday; foreign institutional investors sold shares worth Rs 438.24 crore on Thursday.
- Why
- Rising Brent crude prices, escalating West Asia tensions, weak global markets and foreign fund outflows hurt investor sentiment.
Key facts
- Sensex move
- Down 628.24 points to 74,257.69 in early trade
- Nifty move
- Down 221.20 points to 23,255.10
- Brent crude
- Up 0.95% to $108.70 per barrel
- Foreign fund selling
- FIIs sold equities worth Rs 438.24 crore on Thursday
- Major laggards
- Bajaj Finance, InterGlobe Aviation, Mahindra & Mahindra, Tata Steel, UltraTech Cement and Axis Bank
- Major gainers
- Tech Mahindra, HCL Tech, Infosys, Bharti Airtel and ITC
- Previous close
- Sensex gained 138.36 points and Nifty gained 46.30 points on Thursday
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth, a research analyst firm
“WTI crude is trading in the USD 103–104-per-barrel range after rising around 7.5 per cent in the previous session, while Brent has moved toward the USD 108 mark amid escalating tensions involving Houthi forces and Saudi Arabia.”
deccanchronicle.com
“For India, crude near $110 a barrel would further intensify pressure on inflation, the rupee, the current account and corporate margins, while reducing the scope for monetary easing,”
rediff.com
Sources
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