After an uninterrupted rise in stocks since January, investors needed an excuse to take home some profits. Higher oil prices offered them the perfect reason to dump stocks, resulting in benchmark indices posting their highest single-day fall in four months. Till last week, India was the best performer among global markets, and surprisingly even on Monday, when the market tanked, foreign portfolio managers were net buyers. Though Brent crude slipped below $125, snapping five days of gains, after touching 10-month highs, worries persist that tensions between Iran and Israel could lead to supply disruptions. "The rise in crude oil prices is the single reason for the fall in the markets today. It is difficult to know how long it will persist because these are geopolitical developments," said Nandan Chakraborty, MD-institutional equity research at Enam Securities. "That said, market has gone up a lot recently and it was waiting for a trigger to take a pause.
Source: Economic Times
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