India’s Sensex and Nifty Plunge as Oil and Foreign Selling Weigh
The Sensex fell more than 1,000 points while the Nifty dropped about 300 points Monday, approaching levels last seen in May 2024.
India’s benchmark stock indexes fell sharply Monday, with the Sensex losing more than 1,000 points and the Nifty dropping about 300 points as foreign outflows and higher oil prices intensified pressure across markets.
The Sensex slid into the 72,900 range, while the Nifty fell toward 22,800. Both indexes moved near their May 2024 lows, extending a period of weakness that has left India’s equity market largely stagnant for roughly two and a half years.
Foreign institutional investors sold $384.67 million in Indian equities Friday, while domestic institutional investors bought $295.63 million. The resulting $89.04 million gap reduced the market’s buying support before Monday’s selloff.
Brent crude climbed above $106 after rising 2.9% during the session, even as another crude benchmark traded near $93 a barrel. Higher oil prices raise concerns about fuel, transportation and consumer costs, while increasing pressure on borrowing conditions.
India also raised its short-term capital gains tax from 15% to 20% and its long-term capital gains tax from 10% to 12.5% in July 2024. The tax changes add to the pressure facing traders and retail investors as the indexes approach their lowest levels in more than two years.
