Indian Stocks Slide as West Asia Tensions Fuel Crude Oil Price Surge
Indian stock markets declined on Monday due to selling pressure in IT and FMCG sectors, as renewed tensions in West Asia pushed crude oil prices higher. The Sensex and Nifty closed lower, with the Sensex declining by 307.24 points or 0.40 per cent to settle at 76,957.27.
The Brent crude oil price jumped 3.63 per cent to $91.30 per barrel, fuelling concerns over energy-led inflation and a potential higher interest rate environment. Foreign Institutional Investors offloaded equities worth Rs 5,039.80 crore on Friday, contributing to the negative market sentiment.
Analysts pointed out that escalating tensions between the US and Iran have kept investors on edge, with fading prospects of a diplomatic breakthrough pushing crude oil prices and global bond yields higher. The Fed chair's recent comments after the Jackson Hole address have increased expectations of a potential September rate hike, contributing to near-term volatility in emerging markets.