Indian Sensex down 700 points after U.S.-Iran tensions hit markets
Indian stock markets took a hit this morning, dropping sharply after fresh tensions between the US and Iran.
The Sensex fell 700 points, and the Nifty lost more than 200 points. Most sectors saw early declines, and the rupee strengthened a bit against the dollar, opening at 94.89 to the dollar compared with yesterday's close of 94.95 to the dollar.
Brent crude surges to $91-$94
Brent crude shot up to $91 to $94 per barrel, its biggest jump in over a year, thanks to military action disrupting oil routes.
Senior Economist and Founder of Nikore Associates, Mitali Nikore, pointed out that India's heavy reliance on imported oil could mean higher inflation and a bigger current account deficit if prices stay high.
Independent market analyst Ambareesh Baliga added that if oil crosses $95 per barrel, things could get tougher for both markets and wallets, especially with the rupee having strengthened and festive season demand coming up.