2 weeks ago

Sensex, Nifty drop as crude hits $91 on Iran-US tensions

Sensex, Nifty drop as crude hits $91 on Iran-US tensions
Sensex drops 278 points, Nifty slips in early trade after brent crude hits $91 amid Iran-US tensions · telegraphindia.com

Imagine a big shop where people buy and sell pieces of companies, called stocks.

The Sensex and Nifty are like scoreboards that show how those stocks are doing in India.

On Tuesday, the scoreboards went down.

One reason is that oil, which is used to make fuel, became more expensive.

Oil prices went above $91 for a barrel.

This happened because the United States and Iran are having a disagreement, and people worry that oil supplies could be disrupted.

When oil gets expensive, companies have to pay more to run their businesses, so investors feel worried.

Also, money from foreign investors became less attractive because interest rates in the US went up.

Some experts think India's economy is strong and companies will earn more money soon, which could help.

But for now, the markets are moving up and down because of these worries.

Key facts

Sensex (early trade)
77,450.64, down 278.32 points (one report: 77,362, down 365 points)
Nifty (early trade)
24,230.45, down 57.65 points (one report: 24,211, down 76 points)
Brent crude
$91.46 per barrel, up 0.63%
US 10-year Treasury yield
4.73%
FII net selling (Monday)
Rs 2,535.10 crore
Monday's Sensex close
77,728.16, down 281.09 points
Monday's Nifty close
24,287.65, down 78.35 points
Top Sensex laggards
Bharti Airtel, Asian Paints, InterGlobe Aviation, Infosys, HCL Tech, Tech Mahindra

Quotes

V K Vijayakumar

Chief Investment Strategist, Geojit Investments Ltd

“Two developments during the last several hours are likely to impact the market today, at least in the early hours of trading. One, Brent crude has again spiked above USD 91 on escalation of tensions between Iran and the US. Two, the US 10-year bond yield has increased to 4.73 per cent and this is negative for FII inflows which had turned positive in July and August so far”
telegraphindia.com

Sources

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