Indian markets opened sharply lower on Tuesday due to rising crude oil prices and uncertainty around the United States-Iran war, while concerns over inflation and foreign fund outflows added pressure.
BSE Sensex opened 441.65 points or 0.58% lower at 75,573.63 amid weak global cues and persistent concerns over the economic impact of higher oil prices.
The selling followed sharp declines in the previous session, when the Nifty 50 and Sensex fell 1.5% and 1.7%, respectively. On Monday, the rupee closed at a record low of 95.31 against the US dollar.
There were losses in ten out of 16 major sectors. Broader small-caps and mid-caps declined 0.5% and 0.3%, respectively.
Other Asian markets fell 0.5% as oil prices rose to around $105 a barrel after US President Donald Trump commented that the ceasefire with Iran was “on life support” after he dismissed Tehran’s response to the US peace proposal as “silly”. [MKTS/GLOB]
Higher crude prices are damaging for the world’s third-largest oil importer, as they add to inflationary pressures and weigh on growth and corporate earnings.
Investors are also awaiting India’s April retail inflation data, due later in the day, which could give an indication of how the Iran war has affected price pressures in the economy.
