Indian shares decline on oil spike, Asia selloff

Indian shares fell in early trade on Monday, tracking a sharp selloff across Asian markets, and as crude prices spiked due to the escalation of the Middle East conflict. Brent crude rose 3. 5% to about $96. 5 a barrel after Iran launched missiles at Israel following Israeli strikes on Beirut, reducing hopes for an end to the wider war and raising fears of continued disruption to oil supplies. India’s benchmark Nifty 50 fell 0. 95% to 23, 142. 20 and the BSE Sensex also lost 0. 95% to 73, 529. 06 by 9: 50 a. m. IST. Thirteen of the 16 major sectors declined with high-weightage financials and IT losing 0. 9% and 1. 7%, respectively. The broader small-caps and mid-caps declined about 1% each. The MSCI Asia ex-Japan index tumbled 2. 8%, while South Korea’s KOSPI fell 5% and Japan’s Nikkei lost 3. 7%, led by declines in AI-linked stocks after recent blistering rallies. “The unwinding of the AI-led rally in other Asian markets and renewed geopolitical tensions in the Middle East have intensified investor nervousness across the board, ” said Hariprasad K, research analyst and founder of Livelong Wealth. “Near-term sentiment is likely to remain cautious until stability returns to global markets, crude oil prices, and the technology sector, ” Hariprasad said. Investors are also wary due to rising expectations of a U. S. interest rate hike after a stronger-than-expected May jobs report. India on Friday unveiled steps to help defend an embattled rupee, as the economy grapples with costly oil and foreign investor outflows in the wake of the Iran war. Among shares, InterGlobe Aviation fell 2. 8% after Bloomberg News reported the carrier is unlikely to receive the full batch of nine Airbus A321XLR units this year, due to supply chain issues triggered by the Iran war. Bucking the trend, EMS jumped 14. 1% after receiving a 1. 03 billion rupee ($10. 8 million) order.

Read full story on Business Recorder