Indian Equities Retreat Amid Oil Price Surge and Fed's Hawkish Stance

Deep News12:02

Indian stock markets opened lower on Thursday, driven by escalating conflict in Iran pushing Brent crude above $110 per barrel, while pressure mounted from the U.S. Federal Reserve's hawkish commentary.

Losses deepened as HDFC Bank HDBK.NS, India's largest private lender and the heaviest-weighted stock in the benchmark index, fell sharply following the resignation of its part-time chairman Atanu Chakraborty.

The Nifty 50 index declined 2.44% to 23,197.75 points, while the BSE Sensex dropped 2.55% to 74,750.92 points.

All 16 major sectors traded in negative territory, with the financial sector index down 3% and the banking index falling 3.4%, dragged lower by HDFC Bank's 8.7% slide.

Iran's attack on multiple energy facilities across the Middle East on Wednesday, following an assault on the South Pars gas field, marked a significant escalation in its conflict with the United States and Israel.

The U.S. Federal Reserve held its key interest rate steady on Wednesday but struck a hawkish tone, noting that risks from the Iran conflict were driving energy prices higher. Higher U.S. interest rates reduce the appeal of emerging markets like India to foreign investors.

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