Indian Shares Slump As Oil Resumes Upward Trend
(RTTNews) - Indian shares slumped on Wednesday as oil prices resumed their upward trend, and investors reacted to mixed messages on ?a resolution to the Middle East conflict.
Brent and WTI contracts were up 5-6 percent in European trade as the fighting in Iran continued to rage on, with the U.S. and Israel exchanging air strikes with Iran across the Middle East.
Both contracts plunged more than 11 percent on Tuesday as U.S. President Donald Trump said the war on Iran was "going to be ended soon".
With Iran retaliating across the region and stopping oil shipments, some analysts expect the war to run for months.
Key benchmark indexes opened slightly higher earlier in the session but quickly reversed course on concerns that conflict-linked disruption in the strategic waterway may threaten oil, gas and fertilizer supplies.
Already, India is facing a temporary shortage of LPG cylinders in several cities amid supply constraints due to the ongoing Iran-U.S. Israel war.
The benchmark BSE Sensex plunged 1,342.27 points, or 1.72 percent, to 76,863.71 amid heavy selling in banking, auto and IT stocks.
The broader NSE Nifty index slumped 394.75 points, or 1.63 percent, to 23,86.85.
The market breadth was weak on the BSE, with 2,383 shares falling while 1,878 shares advanced and 153 shares closed unchanged.
Among the prominent decliners, Maruti Suzuki India, Mahindra & Mahindra, Bajaj FinServ, Axis Bank and Bajaj Finance tumbled 3-5 percent.
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