Nifty 50 drops to 22,650 as oil tops $107
Business
Nifty 50 just dropped to its lowest point in six months, falling to 22,650.
The slide comes after a spike in oil prices (now over $107 a barrel), higher US bond yields, and foreign investors pulling out.
Even so, most brokers aren't panicking (Jefferies's Chris Wood called oil the "single biggest near-term risk" and mentioned possible RBI rate hikes), but overall sentiment remains positive.
Brokers warn of profit squeeze
Brokerages like Antique and BofA warn that high oil prices and a weaker rupee could squeeze company profits and keep markets shaky for now. Geopolitical tensions are still on everyone's radar too.
Still, Morgan Stanley thinks there's room for growth ahead; most broker targets suggest Nifty could bounce back with double-digit gains if things stabilize.