Investors worried Israel-Iran situation will see India paying higher for oil
Dubai: Indian stock markets took quite a drop, with the main Sensex opening lower by more than 800 points as investors take in the fallout from the Israel-Iran situation.
Worries about the higher bills India will have to pay for its oil imports is front and center of investors' concerns.
Plus, the Tata Group's listed companies are having a tough day at the markets after Air India's Boeing Dreamliner crash yesterday (June 12) after taking off from Ahmedabad airport.
By 12:50pm IST, the Sensex had pared losses to 630 points.
Yet, "All Tata Group stocks are down, but they are down just in line with the wider markets," said Milan Vaishnav, founder of ChartWizard.ae. "No incident-specific drawdowns are seen on the Group's stocks.
"The oil marketing stocks trade lower."
At just over 10:45am, the Sensex is lower by 719 points.
"Indian equities opened down - but showed a relatively much stronger performance and a lot of resilience to the global market weakness," said Vaishnav.
"The (tech-heavy) Nifty has rebounded over 150 points from the opening lows. This keeps the Index in the well-defined trading range of 24,500-25,100, which was created over the past month." (The Nifty declined in the previous session as well after consolidating just above the 25,000 levels for three days.)
"We see continued rotation in the stocks in favor of defensive pockets like pharma, IT and select upstream energy stocks," said Vaishnav. "The volatility spiked 15% at the start of the session but has cooled off, with the India VIX currently up by 8%."
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