Indian shares fall on oil spike, hawkish Fed; HDFC Bank leads losses
- The Nifty 50 was down 2.44% at 23,197.75
Indian shares sank at the open on Thursday as Brent crude surged above $110 a barrel following a fresh escalation in the Iran war, while a hawkish US Federal Reserve added pressure.
Top private lender and the heaviest weighted stock on the benchmark indexes, HDFC Bank, slid sharply after the resignation of its part-time chairman Atanu Chakraborty, deepening market losses.
The Nifty 50 was down 2.44% at 23,197.75, while the BSE Sensex lost 2.55% to 74,750.92, as of 9:15 a.m. IST.
All 16 major sectors declined, with financials dropping 3% and banks sliding 3.4%, dragged by an 8.7% drop in HDFC Bank. Iran attacked several energy facilities across the Middle East on Wednesday, following a strike on its South Pars gas field, marking a major escalation in its war with the US and Israel.
The US Federal Reserve struck a hawkish tone on Wednesday as it kept key rates unchanged, citing risks from the Iran war that has driven energy prices higher.
Higher US rates make emerging markets such as India less attractive to foreign investors.
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