Indian stock markets are facing a fresh bout of selling pressure as a combination of geopolitical tensions, soaring crude oil prices, rising US bond yields and cautious global sentiment weighs heavily on investor confidence.
The Sensex and Nifty are now heading towards their sixth consecutive week of losses, with the weakness spreading across the broader market rather than remaining confined to a few pockets.
In Friday's trading session on September 11, Indian benchmark indices came under heavy pressure, mirroring weak global cues. The Sensex crashed more than 740 points, or 1%, to 74,160, while the Nifty 50 plunged around 250 points, or 1%, to an intraday low of 23,231.
The latest market decline came as Brent crude reclaimed the $108-per-barrel mark after fighting between Yemen-based Houthi militants and Saudi-backed forces intensified.
Hareesh V, Head of Commodity Research at Geojit Investments Limited, warned that a sustained rise in oil prices can fuel imported inflation, increase transportation and manufacturing costs, widen the current account deficit, and exert pressure on the rupee.