Sensex declines by 561 points on surging oil, West Asia flare-up; banks, auto shares major drag
The BSE Sensex plummeted by 561 points as escalating tensions in West Asia and surging global crude oil prices triggered a sell-off in domestic equities. Banking and automotive stocks experienced the sharpest declines, weighed down by renewed foreign fund outflows.
Indian benchmark indices closed significantly lower on Tuesday as geopolitical instability in West Asia drove crude oil prices higher, sparking fears of imported inflation. The 30-share BSE Sensex ended the session down 561 points, while the NSE Nifty also saw substantial losses across major sectors.
Banking and automotive shares were the primary laggards in the session, facing heavy selling pressure as investor sentiment dampened. Market analysts noted that the combination of high energy costs and global uncertainty disproportionately affected interest rate-sensitive sectors.
Macroeconomic pressures were further exacerbated by the Indian rupee weakening to a record low, slipping past the 96 per dollar mark. Persistent foreign institutional investment outflows contributed to the lack of liquidity and domestic market volatility throughout the trading day.
Source: Analysts cited via news report.
