Indian shares slide to near six-month low as US-Iran deadlock lifts oil prices
- Nifty 50 fell 1.56% to 22,780.25, while the BSE Sensex shed 1.52% to 72,771.72
Indian shares fell to near six-month lows on Monday, extending a seven-week losing streak, as oil prices rose after US-Iran peace talks reached a deadlock.
US President Donald Trump said he rejected an Iranian proposal to reopen the Strait of Hormuz and end the fighting, while Iran said only diplomacy could resolve its conflict with the United States and Israel.
The deadlock raised concerns over oil supplies through the key shipping route, pushing Brent crude futures up 3.7% to $108 a barrel.
For India, the world’s third-largest crude importer, higher oil prices risk stoking inflation, widening the import bill and squeezing corporate margins.
The Nifty 50 fell 1.56% to 22,780.25, while the BSE Sensex shed 1.52% to 72,771.72. The indexes fell nearly 6% over the previous seven weeks, in one of their longest weekly losing streaks on record.
“Markets came under renewed selling pressure on the day, with the rise in Brent crude remaining a major concern,” said Sachin Gupta, vice president of research at Choice Broking.
“Another important factor is elevated global bond yields. Higher US Treasury yields can make dollar-denominated fixed-income investments relatively more attractive and increase global borrowing costs, potentially reducing foreign investment flows into emerging markets.”
All 16 major sectors fell. The broader small-caps and mid-caps slipped 1.9% and 1.6%, respectively.
High-weightage financials and banks lost 1.7% and 2%, respectively. Shares of top private lender HDFC Bank and oil-to-telecom conglomerate Reliance
Industries slid 2.3% each, while ICICI Bank fell 1.9%. The three firms carry large weights on the benchmarks.
Among stocks, Yes Bank fell 5.9% with brokerage Citi flagging near-term pressure on the stock due to weaker earnings, elevated credit costs.
Bucking the broader trend, Borosil gained 6% after Investec reiterated “buy” on the consumer goods maker and hiked the price target, citing gains from anti-dumping duty on Chinese borosilicate table and kitchen glassware.