Indian Stock Market Plummets Amid Crude Oil Price Surge
Indian equity markets experienced their steepest single-session decline in 10 weeks on Thursday. The Nifty 50 fell by 1.64% to 23,063.10, while the Sensex declined by 1.67%, or more than 1,200 points, to 73,580.54.
The sell-off was triggered by a sharp rise in crude oil prices, with Brent crude increasing by 2.4% to $105.60 a barrel. This surge in oil prices raised concerns about inflation and the broader impact of higher energy costs on the Indian economy.
India's dependence on crude oil imports makes international oil prices an important factor for domestic inflation, trade balance, and corporate costs. Hemang Gor, senior research analyst of derivatives and technical research at Axis Direct, stated that 'crude remains a key variable for India, and the spike in oil prices after briefly slipping below $100 revives supply concerns just as domestic markets found its footing.'
The Iran-US tensions added to oil supply worries. Iranian President Masoud Pezeshkian's statement at the United Nations General Assembly that Tehran would not surrender to US pressure led to a rise in Brent crude prices.