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India Stocks Tumble Amid Crude Oil Surge
24 Apr
Summary
- Indian equity benchmarks declined as crude oil prices rose sharply.
- The rupee weakened significantly due to soaring crude oil prices.
- Market sentiment soured amid inflation concerns and foreign investor selling.
Indian equity benchmarks experienced a notable decline on Thursday, influenced by a sharp increase in crude oil prices that pushed Brent crude above the $100 mark. This surge, driven by escalating tensions in the Strait of Hormuz, heightened inflation concerns for India, a major crude importer.
The Indian rupee also continued its downward trend, weakening for the fourth consecutive session and breaching the 94 level against the US dollar. This depreciation was exacerbated by massive selling of domestic equities and consistent withdrawal of foreign funds.
Market sentiment was further dampened by HSBC's downgrade of Indian equities to "underweight" and extended selling by foreign institutional investors. Technical indicators suggest immediate support for Nifty around 24,000, with resistance seen in the 24,400-24,500 range.
