Today both Nifty and Sensex are down 3.4% in pre-opening. Sectoral indices such as Nifty IT, Nifty Bank, Nifty Auto, and Nifty Metal are also down over 3.5%.
Crude oil price is now at its last 7 year high. This will impact the Indian economy as almost 85% of the crude oil processed by Indian refiners is imported.
This will lead to a rise in inflation, which will make goods and services expensive for the consumer and also impact the government’s target of reducing the fiscal deficit.
In quarter 3 of financial year 22, the Indian GDP grew by 5.4%, while in the previous quarter this number was 8.5%. Lower than expected GDP growth has also negatively impacted the market sentiment.