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India's key stock index drops more than 3 percent on worries about soaring oil prices

India's key stock index drops more than 3 percent on worries about soaring oil prices

Indian shares dropped sharply Monday on worries about soaring crude oil prices.
In early trading, the Bombay Stock Exchange's benchmark 30-stock Sensex fell 677.44, or 4.4 percent, to 14,894.74 points. On the broader National Stock Exchange, the 50-company S&P Nifty index declined 3.6 percent to 4,460.90 points.
Crude oil prices surged late last week, with the July contract on the New York Mercantile Exchange jumping 8 percent Friday to US$138.54 a barrel, a record close. In Asian trading Monday, oil was down US$1.03 at US$137.51.
"It's anybody's guess where the oil prices will go. Nobody can call the price," said Gul Tekchandani, a Mumbai-based investment adviser. "Clearly nobody will venture close to the market. The sentiment is negative."
Reliance Industries Ltd. sank 3.23 percent to 2,167 rupees. Banking stocks also dropped, with ICICI bank falling 3.33 percent to 745.20 rupees.
Last week, India cut government subsidies on gasoline, cooking gas and diesel fuel, effectively raising retail prices. The move triggered angry demonstrations in several parts of the country.
Gasoline prices were raised 5 rupees (US$0.13) a liter. In New Delhi, that meant an 11 percent increase to 50 rupees (US$1.20) a liter (US$4.56 a gallon). Fuel prices vary between states, which also impose their own taxes.


Updated : 2021-05-10 07:45 GMT+08:00