Sensex Plunges as Brent Crude Hits Four-Month High

Indian benchmark indices plummeted sharply on September 11 as Brent crude prices held above $108 per barrel. The Sensex fell from its previous close of 74,902.59 to an early low of approximately 74,160, representing a decline of around 740 points or one percent.

The Nifty 50 also opened near 23,270 before touching an early low of 23,231, with sectoral performance being poor, particularly in the Realty and Metal sectors. The India VIX climbed over six percent to reach approximately 12.5, reflecting investor anxiety.

Foreign portfolio investors were net sellers of equities worth Rs 438.24 crore on September 10, while domestic institutional investors served as a buffer by being net buyers of about Rs 1,026 crore during the same session.

The rupee faced parallel selling pressure due to elevated oil prices and depreciated 27 paise to 95.79 against the US dollar in early trade. Brent crude traded between $108.5 and $108.8 per barrel, marking a four-month high.

Amit Pabari of CR Forex noted that for an economy importing 90 percent of its crude, every 10-dollar rise in oil prices can add roughly 12 to 15 billion dollars to the annual import bill.