Stock market tanks amid higher oil prices, PM Modi’s call for austerity

The Indian stock market fell about 1.5% on Monday amid higher global oil prices and concerns about the economic impact of the conflict in West Asia on India.

The benchmark Sensex had fallen more than 1,300 points, or nearly 1.7%, at the end of the session. The Nifty had fallen 360 points, or nearly 1.5%. Investors had lost more than Rs 6.1 lakh crore during the day.

The India VIX index, which measures volatility in the market, spiked nearly 10% on Monday.

The benchmark indices fell for the third consecutive trading session. The stock market had recovered marginally in April after a steep fall in March.

The Indian rupee also weakened on Monday to 95.3 against the US dollar. It had fallen to a record low of 95.4 against the US currency on May 5, before recovering.

Major Asian stock indices had a mixed session on Monday. Hong Kong’s Hang Seng index was up 0.02%, South Korea’s Kospi 4.3% and China’s Shanghai Composite 1%. However, Japan’s Nikkei fell 0.4%.

Energy concerns, economic headwinds

The plunge in the Indian stock indices was seen a day after Prime Minister Narendra Modi urged citizens to revive some work-from-home practices adopted during the Covid-19 pandemic to reduce fuel consumption.

The prime minister’s remark came as oil marketing companies face mounting pressure with...

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