Sensex, Nifty fall 0.7% as oil surge erases early gains
On Monday, Indian equities dipped as crude oil prices surged dramatically after recent attacks on Saudi Arabia. The NSE Nifty 50 and BSE Sensex reversed their earlier positive trajectories, influenced by notable foreign selling. Additionally, worries over the rupee's stability and continual sell-offs from foreign investors decreased market optimism. A reported 1.2% rise in Brent crude intensified…
Indian equities dipped on Monday, erasing early gains and partially undoing Friday's brief rally as crude oil prices surged following new strikes on Saudi Arabia by Iran-aligned Houthis over the weekend, dampening investor confidence. The National Stock Exchange's Nifty 50 index fell 0.70% to close at 22,363.35, while the Bombay Stock Exchange's Sensex declined 0.76% to 71,924.68.
Both indices had climbed by up to 0.6% at the opening bell. Analysts suggest the markets might stay under strain until oil prices plummet considerably or there is clearer direction on resolving the conflict. Utsav Verma, head of research at Choice Institutional Equities, noted that sustained foreign investor withdrawals and pressure on the rupee remain significant concerns for the market.
Asian markets also faced downward pressure on Monday, with South Korea's stock market plunging 3.7%, propelled by the selling spree in chipmakers Samsung Electronics and SK Hynix, while Taiwan's market slipped 0.1%, recovering most of its early losses. Taiwan's semiconductor-driven market also ended the day 0.1% lower. Indonesia lost 2.6% and China's Shenzhen Composite index fell 1.8%, whereas Hong Kong's Hang Seng index rose 0.3%.
Brent crude futures surged 1.2% to $106.19 a barrel, after the fresh attacks on Saudi Arabia, a key oil producer, sparked concerns over potential supply disruptions from the region. In Indian markets, foreign portfolio investors sold equities worth ₹1,708.5 crore on Monday, whereas domestic institutional investors bought equities worth ₹3,045 crore, according to NSE provisional data. So far this year, the Sensex and Nifty have each lost over 15%.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
