Commodities
Geopolitical Tensions Send Indian Stock Markets Plummeting to Three-Month Lows
Indian stock markets took a hit on Thursday, with benchmark indices Sensex and Nifty plummeting to three-month lows. The downturn was driven by geopolitical tensions, which sent Brent crude oil prices soaring 2% to $106/bbl.
The US-Iran ties uncertainty weighed heavily on investor sentiment, causing an across-the-board selling pressure in the markets. As a result, the Nifty 50 fell 1.64% to close at 23,063, while the Sensex slipped 1.67% to 73,580.
The rise in US bond yields also contributed to the market decline. The US 10-year Treasury yield surged to around 5.11%, its highest level since 2007. Experts warn that this may lead to a diversion of liquidity away from emerging markets like India.