Indian markets opened sharply lower on Tuesday as rising crude oil prices and uncertainty around the ongoing United States-Iran war rattled investor sentiment, while concerns over inflation and foreign fund outflows added to the pressure.
The BSE Sensex opened at 75,573.63, down 441.65 points or 0.58%, tracking weak global cues and persistent worries over the economic impact of elevated oil prices.
The selloff follows a sharp decline in the previous session, when the Nifty 50 and Sensex fell 1.5% and 1.7%, respectively. The rupee also hit a record closing low of 95.31 against the US dollar on Monday.
Ten of the 16 major sectors logged losses. The broader small-caps and mid-caps dropped 0.5% and 0.3%, respectively.
Other Asian markets fell 0.5%, as oil prices rose to about $105 a barrel following U.S. President Donald Trump’s comment that the ceasefire with Iran was “on life support” after dismissing Tehran’s response to a U.S. peace proposal as “stupid”. [MKTS/GLOB]
Higher crude prices are detrimental for the world’s third-largest oil importer, as they exacerbate inflationary pressures and weigh on growth and corporate earnings.
Investors also awaited India’s April retail inflation data, due later in the day, which could offer clues on how the Iran war has affected price pressures in the economy.