Indian Indices Plummet as Crude Oil Prices Soar
The Indian benchmark indices opened on a bearish note on Tuesday, with Sensex plummeting over 300 points and Nifty below the 24,300 level.
Elevated crude oil prices and renewed geopolitical concerns weighed on investors' sentiment as Brent crude climbed to USD 91 per barrel while WTI topped USD 85.
The Indian rupee weakened by 17 paise yesterday to close at 95.60 per dollar, hitting a two-week low after the Reserve Bank of India shortened the deadline for its discounted forex swap facility for non-resident deposits.
Vipin Dixena, a market analyst, noted that Nifty has declined for five consecutive sessions, while FII selling remained a concern in the previous session. However, he added that strong DII buying and the recovery from Monday's intraday lows suggest that domestic investors are still providing some cushion to the market.