Indian shares open lower as US-Iran stalemate lifts oil prices
INDA•Indian shares opened lower on Monday as oil prices rose following a stalemate in US-Iran peace talks. The Nifty 50 fell 0.33% to 23,064.9 and the Sensex shed 0.22% to 73,734.83.
1. Shares fall at open
The Nifty 50 fell 0.33% to 23,064.9 and the BSE Sensex shed 0.22% to 73,734.83 as of 9:15 a.m. IST. Fourteen of 16 major sectors recorded losses, while small-cap and mid-cap indexes each fell 0.2%.
2. Oil prices rise
Brent crude futures climbed 2% to about $106.5 per barrel after a stalemate in US-Iran peace talks. U.S. President Donald Trump said he had rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting; Iran said diplomacy was the only way to resolve its conflict with the United States and Israel.
3. Import cost exposure
India is the world's third-largest crude importer, and higher oil prices can stoke inflation, raise the import bill and drag corporate margins.
