Indian shares hit near six-month low as US-Iran deadlock lifts oil prices
INDA•Indian shares fell to near six-month lows on Monday, with the Nifty 50 down 1.16% and the Sensex down 1.18% as higher oil prices weighed on sentiment. Brent crude rose 2.3% to about $106.70 a barrel.
1. Shares extend losses
The Nifty 50 fell 1.16% to 22,871.40 and the BSE Sensex shed 1.18% to 73,022.60 as of 10:00 a.m. IST. Both indexes have declined for seven consecutive weeks, losing nearly 6%. All 16 major sectors fell, while small-caps and mid-caps slipped about 1.1% each.
2. Oil concerns weigh
Brent crude futures rose 2.3% to about $106.70 a barrel after a deadlock in US-Iran peace talks raised concerns over oil supplies through the Strait of Hormuz. Higher oil prices risk stoking inflation, widening India’s import bill and squeezing corporate margins. Financials and banks each fell 1.6%; HDFC Bank lost 1.8%, ICICI Bank fell 1.7% and Reliance Industries dropped 1.4%.
