Indian Stock Markets Tumble Amid West Asia Tensions, Rising Oil Prices
Indian stock markets took a hit on Monday as tensions in West Asia escalated and crude oil prices rose. The 30-share BSE Sensex declined by 226.60 points to 77,028.56 during initial trade, while the 50-share NSE Nifty dropped 120.40 points to 24,053.55.
The global market weakness and foreign fund outflows also contributed to the decline. Brent crude, the global oil benchmark, traded 2.33% higher at USD 90.19 per barrel.
Market analysts said that the renewed tensions in West Asia triggered a rebound in crude oil prices, impacting markets. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, stated that 'if inflation persists at rates higher than the Fed's long-term target, we have work to do'. This led to concerns over a potential US Fed rate hike due to persistent inflation.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,039.80 crore on Friday, according to exchange data. The market is expected to trade with a cautious bias as renewed US-Iran military escalation revives concerns over global energy supplies.