Mkts, Re tumble as crude spikes amid Middle east crisis
image for illustrative purpose
Mumbai: Benchmark equity indices Sensex and Nifty plunged nearly 2 per cent on Monday, while the rupee slid to a record low against the US dollar, as surging crude oil prices and escalating tensions in West Asia rattled investor sentiment.
The 30-share BSE Sensex tanked 1,352.74 points (1.71%) to settle at 77,566.16, marking its second straight session of losses. During the day, it had plunged 2,494.35 points (3.16%) to 76,424.55. The NSE Nifty dropped 422.40 points (1.73%) to 24,028.05, after tumbling 752.65 points (3.07%) in intra-day trade.
Market sentiment remained fragile as crude prices surged above $100 per barrel amid the intensifying West Asia conflict. Brent crude jumped over 12 per cent to $104.1 per barrel, stoking fears of higher inflation and slower economic growth. The spike in oil prices also hammered the currency market. The rupee crashed 53 paise to close at an all-time low of 92.35 against the US dollar, pressured by strong dollar demand, foreign fund outflows and weakness in domestic equities. Broader markets also saw sharp selling, with the BSE midcap and smallcap indices falling over 2 per cent each.
