Sensex Slumps 382 Points Amid Crude Oil Surge and Fed Fears
The BSE Sensex in India fell to 76,132.81 on Monday as concerns over crude oil prices and US Federal Reserve rate hikes weighed on IT stocks.
The benchmark index declined by 382.62 points, or 0.50%, from its previous close of 76,515.43. The NSE Nifty 50 also fell, settling at 23,779.15 points, down 118.55 points or around 0.5%.
The sharp rise in crude oil prices was driven by escalating US-Iran tensions, with Brent crude climbing close to $97 a barrel. Indian equities are particularly sensitive to global energy costs and international capital-flow dynamics, according to Devarsh Vakil, head of prime research at HDFC Securities.
IT stocks led the sell-off, with Infosys falling as much as 2.39% during early trading. The sector's heavy exposure to US client spending is a concern amid rising US Treasury yields and expectations for a Federal Reserve interest-rate increase.