Indian shares fell sharply on Thursday, as risk aversion gripped markets amid bets for further policy tightening by the U.S. Federal Reserve and concerns over China’s beleaguered property market.
The rising threat from oil prices also pressured markets and stoked fresh worries about inflation and interest rates.
West Texas Intermediate oil hit $95 a barrel for the first time since August 2022 in early Asian trade after data from the U.S. Energy Information Administration showed crude stocks at a key storage hub fell to their lowest since July last year and close to operational minimums.
Crude stockpiles fell more than expected, adding to signs of tight supply due to cuts from Saudi Arabia and Russia.
The benchmark S&P BSE Sensex slumped 610.37 points, or 0.92 percent, to 65,508.32, reflecting weak global sentiment.
The broader NSE Nifty index fell 192.90 points, or 0.98 percent, to 19,523.55 as monthly F&O contracts expired.
Rising Treasury yields on expectations that the Fed could raise rates further weighed on heavyweight IT stocks, with Wipro, LTIMindTree and Tech Mahindra tumbling 2-4 percent.
Asian Paints lost 3.7 percent after an announcement that its Executive Director Ashwin Dani has passed away.
Multi Commodity Exchange of India (MCX) jumped 8 percent after it announced the launch of a new web-based commodity derivatives platform (CDP) on October 3.
Market Analysis
Sensex, Nifty Tumble Led By IT Stocks
2023-09-28 10:29:21
