Indian shares fall on crude spike, Modi remarks on fuel, gold purchases
Oil marketing companies such as BPCL, HPCL and Indian Oil fell about 1% each, while travel-linked stocks also declined, after Modi urged citizens to reduce fuel consumption and limit non-essential foreign travel amid the Iran war
Indian shares opened lower on Monday, weighed down by higher oil prices after the US and Iran failed to reach a peace deal, while jewellery and travel-linked stocks fell after Prime Minister Narendra Modi urged citizens to limit travel and gold purchases due to the Iran war.
The Nifty 50 fell 0.85% to 23,970.10 as of 9:15 am IST, while the BSE Sensex shed 0.89% to 76,638.09.
All 16 major sectors logged losses at the open. The broader small-caps and mid-caps lost 0.5% each.
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Oil marketing companies such as BPCL, HPCL and Indian Oil fell about 1% each, while travel-linked stocks also declined, after Modi urged citizens to reduce fuel consumption and limit non-essential foreign travel amid the Iran war.
Jewellery stocks Titan, Senco Gold and Kalyan Jewellers lost between 3% to 4.5% after the comments.
Airline operator Interglobe Aviation lost 3.2%.
Brent crude jumped 4.1% to about $105.5 a barrel after US President Donald Trump on Sunday dismissed the Iranian response to Washington's proposal for peace talks as "unacceptable".
Higher crude prices are detrimental for the world's third-largest oil importer, as they exacerbate inflationary pressures and weigh on growth and corporate earnings.
