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Oil spike and Middle East tensions drag Indian stocks to weekly slump
For the week, the Nifty fell 2.3% and the Sensex declined 2.6%, with the BSE Realty index dropping 4.0% as investors cut risk amid crude above $90 a barrel and a weaker rupee.
Indian equities logged their steepest weekly decline in about two months as escalating tensions in West Asia, higher crude oil prices, a weakening rupee, and uncertainty around corporate earnings pushed investors toward risk reduction, according to LiveMint Markets.
On Friday, the Nifty 50 and the Sensex each fell 0.4% to close at 23,767.45 and 76,059.75, respectively. For the week, the Nifty lost 2.3% and the Sensex declined 2.6%, their steepest fall since the week ended 15 May, when both benchmarks had dropped 2.7%.
Losses were broad based, with the BSE Realty index falling 4.0% to lead declines, followed by a 3.0% drop in the Bankex. Information technology and oil and gas stocks slid about 2% each, while the BSE FMCG index gained 0.5% and the auto index rose 0.1%.
LiveMint Markets cited analyst views that crude has surged past $90 a barrel and the rupee has weakened to 96.96 per dollar, raising concerns about India’s import bill and accelerating foreign investor selling. The article also said the market may be repricing earnings expectations, with near term sentiment pressured by higher oil, rupee weakness, and profitability concerns.
Latest closeWTI crude $92.23 ▲6.2%|Sensex 76,755.05 ▼0.9%