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Sensex and Nifty rebound from early losses as oil prices jump
Brent crude rose 1.5% to around $107 per barrel as supply worries tied to the US-Iran conflict boosted energy costs for India.
India’s equity benchmarks rebounded in Tuesday’s session, but the market still hovered near multi month lows amid pressure from higher crude prices and foreign capital outflows, LiveMint Markets reported. By mid-morning, the NSE Nifty 50 was down 0.29% at 22,715.0, while the BSE Sensex fell 0.35% to 72,522.09.
Earlier in the day, both indices slid as much as 0.9% to their weakest levels since early April, following a steep Monday selloff that saw the 30-share Sensex drop more than 1,100 points, according to the report.
The move tracked a jump in oil markets, with Brent crude futures up 1.5% to about $107 per barrel, after touching $107.1 on persistent supply worries linked to the escalating US-Iran conflict. The report said fears of disruptions through the Strait of Hormuz have raised the risk of higher energy costs for India, which is the world’s third-largest crude importer.
LiveMint Markets also pointed to rising global rates, noting that US 10-year Treasury yields surged to their highest level since July 2007, alongside elevated crude oil prices, as factors weighing on investor sentiment. The report said sustained oil pricing pressures could lift domestic inflation, widen India’s import bill, and squeeze corporate profit margins.
Latest closeWTI crude $93.42 ▲1.1%|Brent $98.85 ▼5.2%|Sensex 73,895.74 ▲0.4%