Oil shock: Sensex loses 642 points - Auto, banks worst hit


Mumbai, Sep 17 (IANS): Indian equities plunged on Tuesday after the weekend attacks on Saudi Arabias oil facilities resulted in the suspension of nearly 6 per cent of the worlds crude production, sending shock waves across global financial markets.

Heightened nervousness was evident on Dalal Street from the sharp jump in the 'fear index' -'India VIX' - which closed nearly 7 per cent higher.

The sharp sell-off that followed the jump in oil prices, resulted in the Sensex losing 642.22 points, or 1.73 per cent, to 36,481.09. The broader Nifty finished at 10,817.60, down 185.90 points.

The auto sector, already in the grip of a major sales downturn, lost the most on the exchanges. Hero MotoCorp, Tata Motors, Maruti Suzuki India and Bharat Forge Ltd fell in the range of 4 to 7 per cent. Subsequently, the Nifty Auto index finished nearly 4 per cent lower.

"Bank Nifty lost 800 points, which is its biggest decline since August 2019. The sell-off was so harsh that it did not allow any sector to close in the green. Despite weakness in the rupee, the technology sector also lost 0.60 per cent," said Shrikant S. Chouhan of Kotak Securities.

"Due to the sudden jump in 10 years GOI yield, bonds have compelled rate sensitive sectors to close lower. Nifty Auto, Reality and PSU bank stocks closed sharply lower," Chouhan added.

Brent crude on Tuesday afternoon, traded at $68 per barrel on the oil futures markets, up 11 per cent over Friday's close of $60.15 prevailing prior to the attack on Saudi oil facilities which resulted in their suspending production of 5.7 million barrels of crude oil per day.

India imports 83 per cent of the oil it consumes, and a recent report by Kotak Institutional Equities said that the sharp rise in international crude oil prices may require India "oil marketing companies (OMCs) to increase the retail price of diesel and gasoline by Rs 5 to 6 per litre in the following fortnight".

On Monday, the oil prices jumped to as much as $71 a barrel as investors reacted to the sudden loss of nearly 6 per cent of the world's daily oil production.

  

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Comment on this article

  • Flavian, Mangaluru/Kuwait

    Wed, Sep 18 2019

    Do not worry, be happy.
    BJP govt. has a capacity to absorb any shock.
    2nd term has just begun.

    DisAgree [2] Agree [2] Reply Report Abuse

  • GK, Mangalore

    Wed, Sep 18 2019

    If RAGA continued than third session also continue. Be happy....

    DisAgree Agree [3] Reply Report Abuse

  • Evans C. Sumitra, Udupi/ New York, USA.

    Wed, Sep 18 2019

    Just wait and watch. The worst is yet to come.

    DisAgree Agree [1] Reply Report Abuse

  • Melvin, Doha Mangalore

    Wed, Sep 18 2019

    Ye To Bas Shuruaat Hai ... Picture Abhi Baaki Dai Dostoo !!!

    DisAgree Agree [1] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Wed, Sep 18 2019

    Please do not lose hopes under Modi government.
    We are in the beginning of BJP's 2nd term and still it's a long way.
    India's economy always depends or reciprocal to world economy and political or geographical conditions.

    DisAgree [1] Agree Reply Report Abuse

  • Jossey Saldanha, Atlanta

    Wed, Sep 18 2019

    Now even Farmers can buy Stocks ...

    DisAgree [2] Agree [11] Reply Report Abuse

  • Satish, udupi

    Wed, Sep 18 2019

    Anybody can buy stocks, if there are ready to absorb volatility of share market.

    DisAgree [3] Agree [4] Reply Report Abuse

  • Narendra Kumar, Mangalore

    Tue, Sep 17 2019

    This is the trailer and litmus test for the people who are ruling without having knowledge of basic economics! All those fanfare of mid night started things(Demonetisation,GST) will automatically go to silent sleep! Modi has sold India for his selfish party expenses and made all black money into white money and RBI also is finished and Nationalized Banks almost going to coma only thing left is people's hard earned Bank Saving Deposits!

    DisAgree Agree [23] Reply Report Abuse

  • Sunil K, Mangalore

    Tue, Sep 17 2019

    Okay. 5 Trillion is a distant dream now. Any hopes on crossing atleast 4 trillion GDP or was all this just another jumla ?

    DisAgree Agree [20] Reply Report Abuse

  • Sahil, Mangaluru

    Tue, Sep 17 2019

    EVM can not rescue stock market. Only rescued BJP party.

    DisAgree [3] Agree [51] Reply Report Abuse

  • SK, Qatar

    Tue, Sep 17 2019

    This is trailer just started ..still people will see more & un expected things will happens

    DisAgree [1] Agree [51] Reply Report Abuse

  • GK, Mangalore

    Wed, Sep 18 2019

    Trail was started in 2007 when sensex slepped from 24000 to below 8000 and all leaders were busy in corruption. Now facing the trail

    DisAgree [26] Agree [4] Reply Report Abuse

  • Allan Dcosta, Kinnigoli / Abu Dhabi

    Wed, Sep 18 2019

    True... just passing the buck like your masters are doing.... blame nehru for this as well...

    DisAgree Agree [25] Reply Report Abuse

  • Mangalorean, MANGALURU

    Tue, Sep 17 2019

    To all the geniuses who kept thumping their bare chests for this govt, now is this time you all will realise that when the ship finally starts sinking, there's neither life jackets nor rescue boats. The captain himself doesn't know how to sail the ship nor his team, it's all about marketing and marketing and marketing, and ofcourse pulling out all the reserves from RBI each time there's a hole in the ship. Trust me, there are so many holes this time around that no God can save this ship from sinking.

    DisAgree [6] Agree [75] Reply Report Abuse

  • vishnu bhat, bangalore

    Tue, Sep 17 2019

    Too bad that Jawaharlal Nehru or the British cannot be blamed for this. Madam FM, have you woken up yet? Or do you need further shocks? The PM should focus on the country's needs, not jetset around the world pointlessly. He always washes his hands off any problems - he is first in line, however, to claim credit. When will Indians realise this?

    DisAgree [2] Agree [74] Reply Report Abuse

  • Anonymous, Muscat

    Tue, Sep 17 2019

    Dont get into the maths of pain

    just bear it

    DisAgree [4] Agree [44] Reply Report Abuse

  • Ina Mina Diga, Valencia, Mangalore

    Tue, Sep 17 2019

    Ache din are coming everyday!
    But not reaching citizens of India
    Real movie started after the trailer.

    DisAgree [6] Agree [75] Reply Report Abuse

  • Just, Mangalore

    Tue, Sep 17 2019

    Nehru is responsible for this

    DisAgree [5] Agree [71] Reply Report Abuse

  • SKM, MANGALORE

    Tue, Sep 17 2019

    Where are the big talks? what cannot be possible in sixty can be made possible in 6 months! now six years passed. Six years back's Indian strong economy is in doldrums. Can India attain self reliance on oil sufficiency.

    DisAgree Agree [59] Reply Report Abuse


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