Crude Oil Prices Climb, Indian Rupee Weakens, and Dalal Street Faces Another Setback
MUMBAI: The Indian crude basket’s average price surged to $120 per barrel in October, marking a 14-year high. This increase, coupled with a weakening rupee and declining Asian markets, negatively impacted investor sentiment on Dalal Street. The Sensex fell by 460 points, or 0.6%, closing at 73,249 points, while the Nifty dropped 124 points, or 0.5%, to finish at 22,688 points.
The rise in crude prices is attributed to escalating tensions in the Persian Gulf region, particularly concerning the US and Iran. Brent crude prices exceeded $112 per barrel, the highest since May, contributing to the spike in the Indian crude basket, which is derived from Brent and Oman & Dubai crude oils. This price increase is the highest since March 2012, when it reached $123.6 per barrel.
The rupee, after an eight-session rally, weakened against the dollar, falling 36 paise to hover near the 95/$ level. Weakness in major Asian markets further unsettled Indian investors. Ankur Punj, MD of Equirus Wealth, noted that external factors, including the West Asia conflict, were driving the market’s downward trend. He highlighted concerns over inflation due to rising crude prices and ongoing foreign fund selling in local shares, which could push investors towards safer dollar assets.
Asian markets reflected this sentiment, with the Kospi in Korea down 3.5%, the Hang Seng in Hong Kong down 3%, the Nikkei in Japan down 2.7%, and the Shanghai Composite in China down 1.5%. European markets also faced declines, with the CAC 40 in France down 1.4%, the DAX in Germany down 1.1%, and the FTSE 100 down 0.3%.
In the domestic market, foreign portfolio investors were net sellers, offloading Rs 3,459 crore worth of shares, while domestic funds bought Rs 2,891 crore. The day’s trading session resulted in a loss of approximately Rs 3.3 lakh crore for investors.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
