Indian Crude Hits 14-Year High, Sensex Drops 460 Points
Rising crude oil prices and a weakening rupee lead to significant losses on Dalal Street.
Indian crude oil prices reach $120 per barrel, the highest since March 2012.
Sensex declines by 460 points, closing at 73,249 points.
Foreign investors sell off shares, contributing to a market loss of Rs 3.3 lakh crore.
MUMBAI: On Thursday, the Indian stock market faced a downturn as crude oil prices surged to a 14-year peak, coupled with a decline in the rupee after an eight-session rally. The Sensex opened weak and ultimately closed 460 points lower at 73,249 points, while the Nifty fell by 124 points to settle at 22,688 points.
The rise in crude oil prices, with the Indian crude basket averaging $120 per barrel for October, has raised concerns among investors. This price is the highest recorded since it reached $123.6 in March 2012. The Indian crude basket comprises Brent and Oman & Dubai crude oils, which are essential for Indian refiners. The spike in prices is attributed to escalating tensions in the Persian Gulf, particularly between the US and Iran.
The rupee also felt the pressure, reversing its previous gains and hovering around the 95/$ mark after a drop of 36 paise. Market analysts noted that the combination of rising oil prices and weak Asian markets has dampened investor sentiment. Ankur Punj, Managing Director of Equirus Wealth, emphasized that external factors, particularly the West Asia conflict, have adversely impacted the Indian market.
Asian markets reflected a similar trend, with major indices such as Korea's Kospi down 3.5%, Hong Kong's Hang Seng down 3%, Japan's Nikkei down 2.7%, and China's Shanghai Composite down 1.5%. European markets also faced declines, with notable losses in France, Germany, and the UK.
In the domestic market, foreign portfolio investors (FPIs) were net sellers, offloading shares worth Rs 3,459 crore, while domestic funds managed to buy Rs 2,891 crore. The overall market capitalization saw a significant decrease, with investors losing approximately Rs 3.3 lakh crore by the end of the trading session.
