Indian Markets Tumble on Oil, Geopolitics
Indian equities are underperforming peers as the Sensex/Nifty dropped 6.3%—double the fall in Israel or UAE. The market downturn continues due to soaring crude prices and West Asia turmoil, with the Sensex tanking 800 points on Thursday. FII outflows, STT hikes, and rupee weakness are contributing to the decline.
The Sensex fell by over 800 points on Thursday, closing at 76,034.42, a 1.08% drop, due to rising crude oil prices and escalating tensions in West Asia. During the day's volatile trading, the index plunged nearly 1,000 points before recovering slightly. The Nifty 50 also declined, falling 227.70 points, or 0.95%, to close at 23,639.15. The rising crude oil prices, nearing $100 per barrel, are a major concern for India, which relies heavily on oil imports. Geopolitical tensions, particularly attacks on oil-shipping vessels, are pushing crude prices higher, intensifying concerns about inflation and gas supply. The International Energy Agency's potential release of 400 million barrels of oil did little to calm the market. Foreign capital outflows continue to pressure Indian equities. FPIs withdrew a net $4.3 billion in March, adding to concerns after selling a net $4 billion in January, although they had net inflows of $2.5 billion in February. The rupee also weakened, settling at 92.17 against the US dollar.
