Latest news with #Chokkalingam.G

Business Standard

Oil prices surge 6% as Israel-Iran conflict rattles global markets

Oil prices spiked, and stocks tumbled after Israel attacked Iranian nuclear sites, and Tehran retaliated with drone strikes. The development triggered risk-off bets, with investors fretting over rise inflation and impact on global economic growth, which is already riddled with uncertainties. The price of Brent crude jumped over 6 per cent to $75.2 per barrel. The gain was the second-largest since April 9. So far in June, Brent crude prices have jumped 20 per cent, the highest monthly advance since November 2020. The Sensex ended at 81,119, with a decline of 573 points, or 0.7 per cent. The Nifty 50 index ended at 24,719, with a drop of 170 points, or 0.7 per cent. For the week, the Sensex declined by 1.3 per cent and Nifty by 1.1 per cent. The broader Nifty Midcap 100 declined by 0.4 per cent, while the Nifty Smallcap 100 by 0.5 per cent. The market capitalisation of BSE-listed firms fell by Rs 2.4 trillion. Investors flocked to safe-haven assets, with gold prices rising 1 per cent to near two month high of $3,420 per ounce. The rupee declined 0.6 per cent against US dollar to 86.1. The fresh attack on Iran threatens to push the Middle East into a more profound political crisis and hurt the global economy. The Middle East has been simmering with geopolitical tension for the last two years after Hamas, a militant Palestinian group backed by Iran, attacked Israel from Gaza. Iran and Israel have been engaged in a shadow war for decades. Though the two countries attacked each other twice last year, this is the first time Israel has decided to attack Iran's atomic facilities. Iran is among the largest producer of oil and a key supplier to China. Experts said if tensions escalate in the Middle East it could disrupt the world energy supplies. Higher oil prices are negative for India, which imports the bulk of its oil requirements. A sustained gain in oil prices will fuel inflation and upend the plans of central banks, including the RBI, which recently cut rates, banking on low inflation to focus on supporting economic growth, said experts. "The market trajectory will depend on where oil prices are headed. If the current tensions are de-escalated, it will have little impact. But if it drags on and oil prices return to $100, then we will be on a sticky wicket. One has to see if other countries are dragged to this conflict or if they give tactical support," said Chokkalingam. G , founder of Equinomics. The market breadth was weak, with 2,595 stocks declining and 1,401 advances.