Indian shares: Sensex, Nifty drop as oil surge hits investor sentiment
Indian shares declined on Monday, while the rupee slipped to a record low in early trade, as oil prices surged following a drone attack on a nuclear power plant in the United Arab Emirates, which heightened tensions in the Middle East, News.Az reports, citing Reuters.
Sentiment was further weakened after U.S. President Donald Trump warned that “the clock is ticking” for Iran, as diplomatic efforts to de-escalate the conflict appeared to stall.
The Nifty 50 index (.NSEI) fell 1.26% to 23,347.2, while the BSE Sensex dropped 1.20% to 74,335.62 as of 10:05 a.m. IST.
Fifteen of the 16 major sectors ended lower. Broader markets also weakened, with small-cap stocks (.NIFSMCP100) falling 2.1% and mid-caps (.NIFMDCP100) losing 1.6%.
RECOMMENDED STORIES
The rupee weakened to an all-time low as rising oil prices pushed global bond yields higher.
Brent crude climbed to $112 per barrel, a two-week high. Other Asian markets also declined, falling about 0.8%.
Foreign portfolio investors have sold Indian equities worth $23.52 billion so far this year, already surpassing previous record annual outflows.
Among major stocks, HDFC Bank and Reliance Industries fell 1.4% and 1% respectively.
Tata Steel dropped 5% after reporting a smaller-than-expected fourth-quarter profit.
Power Grid Corporation of India slid 4.1% despite posting nearly 10% growth in March-quarter profit. Motilal Oswal attributed the earnings growth to a 52.8 billion-rupee deferred tax asset, noting that revenue and operating profit missed estimates.
By Nijat Babayev
Similar news
