Indian Benchmark Indices Plummet Amid Rising Crude Oil Prices

The Indian benchmark indices closed lower on September 8th, weighed down by rising crude oil prices as Brent crude neared the USD 100 per barrel mark. The BSE Sensex closed at 75,577.58, down 555.23 points, or 0.73 per cent, while the Nifty 50 index settled at 23,635.10, declining 144.05 points, or 0.61 per cent.

Investor sentiment remained cautious across Asian markets as higher crude oil prices raised concerns over their impact on inflation and corporate earnings. Brent crude prices surged more than 2 per cent and were trading at around USD 99 per barrel at the time of reporting.

Vinod Nair, Head of Research, Geojit Investments Limited, said that sustaining optimism may become challenging with crude oil prices breaching to USD 100 per barrel. He also stated that a greater focus on large-cap stocks and non-equity ETFs appears safer, adding that defensive areas such as Healthcare, Telecom, FMCG, Diversified businesses, and IT can continue to provide an edge to portfolios.