The Indian stock market benchmarks, the Sensex and the Nifty 50, suffered significant losses in intraday deals on Tuesday, 8 September, looking set to extend losses for the second consecutive session.
The Sensex declined over 450 points, or about 0.60%, to an intraday low of 75,676, while the NSE counterpart Nifty 50 declined 0.50% to the day’s low of 23,657 during the session.
In just two sessions, the Sensex has lost more than 800 points, or 1%, while the Nifty 50, too, has lost 1%.
Why is the stock market down today?
Experts highlighted the following three factors behind the downtrend in the stock market:
1. Oil price jumps
A rise in crude oil prices weighed on market sentiment. Brent crude prices remained close to $100 a barrel on Tuesday as markets awaited details of a proposed Iran-Oman arrangement to manage shipping through the Strait of Hormuz, while increased buying by Chinese refiners added to market tightness, Bloomberg reported.
Crude oil prices have been up for most of the year, driven by the US-Iran conflict. India is the world’s third-largest importer of crude oil.
Elevated oil prices have fuelled concerns about their negative impact on India’s fiscal position, a potential inflation flare-up, and monetary tightening.
(This is a developing story. Please check back for fresh updates.)
