Sensex tanks 1,300 points from day's high
What's the story
The benchmark indices, Sensex and Nifty, witnessed a sharp decline on September 15 with the former plunging 1,300 points from intraday highs. The fall was due to various reasons, including rising oil prices and global bond yields. At around 2:50pm today, the Sensex was down by 665 points at 74,116 while the Nifty slipped by over 230 points to trade at around 23,160. India VIX surged 9% to 13.43 during Tuesday's afternoon session, highlighting elevated market anxiety.
Market dynamics
Brent crude prices were trading near $107
The market witnessed a mixed bag with 1,042 shares advancing while 3,022 shares declined.
The sell-off in the market can be attributed to higher oil prices amid fears of an escalation in the Middle East conflict.
Yemen's Iran-aligned Houthis have launched fresh attacks on Saudi Arabia, raising concerns over global energy supply stability.
Brent crude prices were trading near $107 during Asian trading hours today.
Inflation impact
India is affected by rising crude oil prices
The rising crude oil prices are a major concern for India, the world's third-largest oil importer.
The inflationary pressures from these rising costs have also increased expectations of a US rate hike later this week.
Meanwhile, India's retail inflation accelerated in August as price pressures extended beyond food and transport sectors, further strengthening the case for a central bank rate hike next month.