Sensex drops 262 points, rupee declines 1% as global oil price surges
Domestic equities, the rupee, and bonds came under selling pressure on Monday as the sharp surge in global oil prices sparked macroeconomic fears. The benchmark Sensex fell 0.7 per cent, or 262 points, to end at 37,123. The rupee fell nearly a per cent to end at 71.6 compared to the previous day’s close of 70.93 against the dollar.
The yield on the 10-year government security rose nearly 8 basis points to 6.71 per cent. Bond yields and prices move in opposite directions.
The sell-off was triggered after the benchmark oil futures jumped as much as $11.73 a barrel to $71.95 in Asia, the biggest intraday advance in dollar-terms since futures started trading in 1988.
