Sensex tanks over 300 points as global oil prices spike

NEW DELHI: Equity indices on Monday turned negative with the benchmark BSE sensex plunging more than 300 points to trade below the 39,000-mark as global oil prices spiked on a report that the United States is likely to announce end to Iran sanctions waivers.
Sensex crashed 305 points or 0.78 per cent to 38,835, while the broader NSE Nifty moved 94 points or 0.80 per cent lower to 11,659.
On the BSE index, Yes Bank, Reliance Industries, Bharti Airtel, IndusInd Bank, Asian Paints were among the top losers with their stocks down as much as 2.31 per cent. On NSE, except for Nifty IT, all other sub-indices were trading in red, sliding as much as 2.05 per cent.
The US is expected to announce that all buyers of Iranian oil will have to end their imports shortly or face sanctions, a source told news agency Reuters, triggering about a 3 per cent rise in crude prices.
In November last year, the US had reimposed sanctions on exports of Iranian oil after President Donald Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers.
Washington, however, granted Iran’s eight main buyers of oil waivers to the sanctions that allowed them limited purchases for six months. They were China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece.
The potential disruption to Iranian supplies are expected to add to an already tight oil market.
(With agency inputs)