6 hrs ago
Oil Surge and Rate Fears Send Indian Markets Tumbling
Indian share markets had a very bad Tuesday.
The Sensex and Nifty both fell sharply.
Oil prices climbed above $107 per barrel, making investors nervous.
Investors were also worried about conflicts and higher interest rates around the world.
Higher rates can make it more expensive for companies and people to borrow money.
Many banking, auto, energy, and industrial companies lost value.
Technology companies moved higher because some comments suggested artificial intelligence might develop more slowly than expected.
Markets in several Asian countries and Europe also traded lower.
The BSE Sensex fell 777.94 points, or 1.04%, to 74,003.82, its lowest close in three months.
The NSE Nifty dropped 279.50 points, or 1.19%, to 23,118.60, its lowest close since April 6.
Brent crude rose 1.89% to $107.70 per barrel amid geopolitical tensions and supply concerns.
Banking, auto, oil and gas, capital goods, realty, and industrial shares led the decline.
Information technology stocks gained as investors considered comments suggesting slower artificial-intelligence development could ease disruption concerns.
- Who
- Indian stock-market investors, companies listed on the BSE and NSE, and global investors influenced by oil prices and interest-rate expectations.
- What
- The Sensex and Nifty suffered sharp declines, while information technology shares rose.
- Where
- Indian stock markets, with weakness also reported across Asian and European markets.
- When
- Tuesday; the article does not specify the calendar date.
- Why
- Surging crude prices, geopolitical tensions, elevated global bond yields, expectations of further monetary tightening, and persistent foreign outflows weighed on sentiment.
Key facts
- Sensex close
- 74,003.82, down 777.94 points or 1.04%
- Nifty close
- 23,118.60, down 279.50 points or 1.19%
- Brent crude
- $107.70 per barrel, up 1.89%
- Market breadth
- 3,292 BSE stocks declined, 1,190 advanced, and 202 were unchanged
- Top decliner
- Bharat Electronics fell about 6%
- IT performance
- HCLTech rose 3.98%, Infosys 3.64%, and Tech Mahindra 2.31%
- Other markets
- Major Asian markets ended lower, while European markets traded negatively
Quotes
Vinod Nair
Head of Research at Geojit Investments Limited
“Domestic markets remained under pressure, extending their recent correction as elevated crude oil prices and rising global bond yields weighed on sentiment.”
thehansindia.com
Sources
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