Mumbai: Indian benchmark indices opened sharply lower on Thursday, October 22, as rising crude oil prices heightened concerns about the inflation outlook, according to market reports from DSIJ and Upstox.
Source: DSIJ
At 9:18 am IST, the Sensex had fallen 572.62 points, or 0.78 per cent, to 73,137.07, while the Nifty 50 declined 199.15 points, or 0.87 per cent, to 22,610.30, DSIJ reported. Upstox reported the fall deepened further, with the Sensex crashing as much as 705 points and the Nifty touching an intraday low of 22,564, dragged down by losses in HDFC Bank, Reliance Industries, Mahindra & Mahindra, Maruti Suzuki, Bharti Airtel, Power Grid and Bajaj Finance.
Source: Upstox
Brent crude futures rose 1.67 per cent to $110.64 a barrel, compared with the previous close of $108.82, TradeBrains reported, adding that the rupee was quoted at ₹94.42 against the US dollar. India imports the bulk of the crude oil it consumes, so sustained high prices tend to widen the trade deficit and raise costs across businesses.
The selling was not limited to the benchmarks. The broader markets also witnessed selling pressure in early trade, with the Nifty MidCap index falling 1.04 per cent and the Nifty SmallCap index declining 0.91 per cent, according to DSIJ. Power Grid Corporation, Mahindra & Mahindra and Nestle India were among the top losers in the Nifty 50 in early trade.
Thursday's fall extended the previous session's decline, in which the Sensex had ended 143.21 points, or 0.19 per cent, lower at 73,709.69 and the Nifty had closed 77.60 points, or 0.34 per cent, down at 22,811.35, The Hindu BusinessLine's market data showed.
Source: The Hindu BusinessLine
Costlier crude raises India's import bill and can push up inflation, which pressures the rupee, company margins and household budgets. Traders said investors would keep watching crude prices, foreign investor flows and September-quarter earnings through the session.