Updated
Updated · Bloomberg · Jul 9
India's Nifty 50 Drops 2.1% and Rupee Hits 4-Week Low as Oil Rebounds
Updated
Updated · Bloomberg · Jul 9

India's Nifty 50 Drops 2.1% and Rupee Hits 4-Week Low as Oil Rebounds

3 articles · Updated · Bloomberg · Jul 9

Summary

  • India’s rupee closed at its weakest level since June 11 and the Nifty 50 slid 2.1% on Wednesday as ongoing US strikes in Iran lifted oil prices and renewed pressure on Indian assets.
  • Nine laden tankers are waiting in the Persian Gulf, prompting India to weigh options including talks with Iran to secure safe passage and limit risks to energy supplies.
  • 20 billion rupees of net foreign equity buying in the last session offered some support, while State Bank of India has raised more than $1.5 billion in foreign-currency deposits under a special overseas-citizen program.
  • 23,800 on the Nifty is now a key level for traders because the benchmark is nearing its 50-day moving average, with IT stocks also in focus ahead of TCS results later Thursday.

Insights

While Indian markets fall on oil fears, why are global funds investing billions? What opportunity do they see?
As India boosts oil reserves and US imports, is it truly securing its energy future or just shifting its dependency?
With the US-Iran deal now 'over,' what prevents a full-blown conflict from shutting down the world's oil artery?