Sensex drops to lowest since July 24 on US-Iran oil shock
India’s BSE Sensex fell about 0.8% to 76,339, its lowest since July 24, as escalating US-Iran tensions lifted Brent crude about 1% to $95.40 and triggered a broad selloff.
India’s BSE Sensex fell about 0.8% to 76,339 on Wednesday, hitting its lowest level since July 24, as escalating US-Iran tensions pushed oil prices higher and triggered a broad selloff.
Brent crude rose about 1% to $95.40 a barrel after briefly touching a near six-week high, as renewed US-Iran military strikes heightened fears of supply disruptions.
The jump in crude also pushed global bond yields higher, with investors increasingly concerned that persistent inflation could delay monetary easing or prompt higher interest rates.
The rupee also came under pressure as higher oil prices tested recent gains supported by RBI intervention and dollar selling by foreign banks.
Meanwhile, ICICI Bank said it had mobilised $17.88 billion under the RBI’s FCNR scheme through August 31, boosting dollar inflows that could help ease pressure on the rupee as oil prices rise.
Notable laggards included HDFC Bank (-1.2%), Infosys (-1.3%), Reliance (-0.6%), ICICI Bank (-0.8%), and TCS (-1.0%).