4 hrs ago
Indian Stocks Plunge as Oil, Yields and War Weigh
Indian stock markets fell sharply on Friday morning.
The Sensex and Nifty 50 are large groups used to track Indian shares.
The Sensex lost more than 700 points, while the Nifty 50 lost more than 200 points.
Investors lost about ₹6 lakh crore in the first few minutes of trading.
Markets around the world were also falling because investors were worried about inflation and higher interest rates.
Oil became more expensive, which can make it harder for India’s economy and companies to grow.
US government bond yields rose close to 5%, making investors more cautious about stocks.
The article also linked the fall to worsening conflict involving the US and Iran.
Money moving into new share offerings and a weaker rupee added to the pressure.
The Sensex fell more than 700 points and the Nifty 50 dropped over 200 points in Friday morning trading.
Indian investors lost about ₹6 lakh crore within the first five minutes as BSE-listed companies' market value declined.
Global concerns included elevated inflation, rising US bond yields, and losses across major Asian and American markets.
Brent crude rose above $108 per barrel amid escalating Middle East tensions and fears of wider supply disruptions.
Experts also cited IPO fund flows, possible US Federal Reserve rate hikes, and a weaker rupee as additional pressures.
- Who
- Indian stock-market investors, the Sensex, the Nifty 50, and companies listed on the Bombay Stock Exchange were affected.
- What
- Indian benchmark indexes suffered a broad-based decline, with the Sensex falling over 700 points and the Nifty 50 dropping over 200 points.
- Where
- In Indian financial markets, amid losses across global and Asian markets.
- When
- Friday morning, 11 September.
- Why
- The article cited rising crude oil prices, higher US bond yields, worsening US-Iran tensions, IPO-related fund flows, possible Federal Reserve rate hikes, and a weaker rupee.
Key facts
- Sensex low
- About 74,200, after falling more than 700 points or 1%
- Nifty 50 low
- About 23,231, after falling more than 200 points or 1%
- Investor losses
- About ₹6 lakh crore in the first five minutes of trading
- BSE market capitalization
- Declined from nearly ₹484 lakh crore to about ₹478 lakh crore
- Brent crude
- Rose above $108 per barrel
- US 10-year yield
- Reached 4.98%
- Indian rupee
- Fell 27 paise to 95.79 against the US dollar
Quotes
V K Vijayakumar
Chief Investment Strategist at Geojit Investments
“Headwinds for the market are getting stronger with the escalation in the Middle East conflict. Brent crude has shot up to around $108. If this high price sustains, or worse, spikes further, the impact on India’s GDP growth and consequently on corporate earnings will not be insignificant.”
livemint.com
“A strong headwind is the rise in U.S. bond yields. The 10-year yield, now at 4.98%, is approaching the 5% mark, which many regard as a possible inflection point for global equities. A correction in the global equity market is likely, but the timing is hard to predict.”
livemint.com
Sources
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