As the crude oil prices soared following attacks on Saudi oil fields, the Bombay Stock Exchange’s Sensex dropped 642 points to trade at 36,481 on Tuesday as the market sentiment remained weak.
While the 50-share National Stock Exchange’s Nifty slumped below 10,000 points. Rupee fell sharply by 37 paise to stand at 71.97 against the US dollar.
Auto, Metal and Banking sectors were to top losers. Hero MotorCorp, Tata Motors, Axis Bank, Tata steel, Maruti Suzuki, SBI, Bajaj Auto, HDFC, M&M, ICICI Bank, Yes Bank and IndusInd Bank were colored red in the indices.
Analysts say the Oil prices could further hit the market sentiment while the country is already reeling with a 6-year low in the GDP growth at 5%.
On Monday the oil prices rose sharply by nearly 20% in intraday trade in response to the attacks on the Saudi oil fields. The same day, Foreign Portfolio Investors (FPI) sold securities worth Rs 751.26 crore, while domestic institutional investors bought equities worth Rs 308.56 crore.
Rising import bill for crude oil is expected to worsen the situation in the near future increasing the country’s fiscal deficit. Global oil benchmark of brent crude fell 0.27 % to trade at 67.28 % by closing bell.