Mumbai: A surge in crude oil prices sent Sensex and Nifty to their steepest drop this year as investors rushed to sell shares today, fearing that rising oil prices will stoke inflation and lead to fiscal slippages in the Indian economy.
The Sensex fell 495.10 points, or 1.26%, to 38,645.18 at the close of trading, while the NSE Nifty index dropped 1.35% to 11,594.45. Crude oil rose to a six-month high after the Trump administration in the US said it won’t renew Iran oil waivers once they expire.
India, the world’s third-largest oil importer, is one of the eight countries that won a six-month waiver to continue importing crude oil from Iran after the US imposed sanctions on the West Asian nation in November.
