Indian investors ran for cover on Monday following the drone attacks on the oil facilities of Saudi Arabia as they grappled with the possible impact of the strikes on an economy which grew just 5 per cent in the April-June quarter, the lowest in six years.
Soaring crude prices caused the rupee to crash 68 paise to 71.60 against the dollar and the benchmark Sensex to settle 262 points lower on Monday.
The effect was also seen in government papers, with yields on the benchmark 10-year bond rising almost 8 basis points to close at 6.71 per cent.
Amid a rush to safe-haven assets, gold prices gained Rs 460 to Rs 38,860 per 10 gram in the national capital.
