Sensex and Nifty 50 fall as Brent rises above $114 per barrel — OilPrice

In India, the main stock indices started the week lower on October 26 following a surge in oil prices. The Sensex index fell by 0.46%, while the Nifty 50 declined by 0.5% as Brent prices exceeded $114 per barrel. Declines were recorded in 12 of the 16 sectors of the Indian market, with IT company shares in particular losing 1.1%.

High oil prices

According to OilPrice, citing Reuters, investors reacted to concerns over possible disruptions to oil supplies due to escalating tensions in the Middle East.

G. Chokkalingam, founder and head of research at Equinomic Research, told Reuters that India’s domestic stock market may remain highly volatile and have a short-term downward bias. In his view, high energy costs could once again fuel global inflation, restrain economic growth, and worsen the outlook for global stock markets.

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Oil imports

In September, India increased oil imports from the Middle East to 2.8 million barrels per day. The region’s share of the country’s total oil imports rose to 54%, compared with 32% in August. According to OilPrice, this was facilitated by more active purchases of spot cargoes by Indian oil refiners.

Oil imports from Russia, an aggressor state, fell by 14% in September compared with August, to 1.8 million barrels per day. At the same time, Russia remained the largest individual source of oil supplies to India, while its share of Indian imports declined from 46.6% to 33.5%.