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Indian Markets Face Persistent Turbulence From Oil, Rates, Outflows
Indian share prices fell on Wednesday.
The Sensex, a major stock-market index, dropped 1.08%.
Smaller company shares also lost value.
A measure called India VIX showed that investors were more nervous.
Oil became more expensive because fighting in West Asia affected concerns about energy supplies.
Expensive oil can make imports, inflation and India’s currency problems worse.
The rupee fell below 95 against the US dollar.
Investors are also worried that high interest rates around the world could make investing harder.
Foreign investors have already taken $1.3 billion out of Indian shares this month.
The Sensex fell 1.08% on Wednesday, while small- and mid-cap indices also declined.
India VIX rose nearly 7%, signaling increased market volatility.
Brent crude reached $100 a barrel, while India’s crude basket rose to $108.91 on September 8.
The rupee weakened past 95 per dollar amid concerns about oil prices, inflation and external balances.
Foreign investors withdrew $1.3 billion from Indian equities in September after buying shares in August.
- Who
- Indian stock-market investors, foreign investors and companies, particularly in the IT sector, are affected.
- What
- Indian markets declined, with the Sensex falling 1.08% and volatility increasing.
- Where
- Indian stock markets, amid wider developments across Asian and global markets.
- When
- On Wednesday; the article also cites data as of September 8 and investor withdrawals during September.
- Why
- Concerns include higher crude-oil prices, the expanding West Asia conflict, a weaker rupee, tighter global financial conditions and uncertainty about US interest-rate policy.
Key facts
- Sensex move
- Down 1.08% on Wednesday
- India VIX
- Rose nearly 7%
- Year-to-date Sensex decline
- Roughly 12% since the beginning of the year
- Brent crude price
- Reached $100 per barrel
- Indian crude basket
- $108.91 per barrel as of September 8
- Rupee level
- Slipped past 95 per US dollar
- Foreign investor outflows
- $1.3 billion from Indian stock markets in September
Sources
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