India's Sensex slumps to 32-month low on oil surge, foreign exodus

Business Recorder reported that India's Sensex fell to its lowest level in 32 months on Thursday, closing 1.44% lower at 71,593.24. The Nifty 50 dropped 1.64% to 22,231.8, a close the 50-stock gauge had not seen in 18 months. All 16 major sectors ended in the red.

Pressure came from surging crude, rising global bond yields and a weaker rupee, which together lifted inflation worries after the Reserve Bank of India raised its repo rate by 25 basis points to 5.5% on Wednesday. Brent crude jumped 4% above $104 a barrel as attacks on Gulf shipping and a US hurricane tightened supply, and the central bank has hinted at further tightening.

Foreign investors sold a net 469.9 billion rupees ($4.86 billion) over nine days, and outflows for the year have now reached a record $30.4 billion. The benchmark has shed nearly 15% this year, a contrast with the 23% gain in MSCI's emerging markets index, which was lifted by fund inflows into AI-related shares.