Indian equity benchmarks broke their two-day winning streak on Wednesday, reflecting losses in global markets, as oil prices hit their highest level in seven years, fueled by concerns about rising inflation. The Sensex fell over 850 points from the day’s high and the Nifty 50 index fell below 17,650 after hitting a high of 17,884.60. Analysts said Indian benchmarks managed to avoid a weak trend in global markets in the first half of the session, but with profit-booking at higher levels coupled with increasing volatility, the benchmark gave up intraday gains and fell sharply.
The Sensex ended 555 points lower at 59,190 and the Nifty 50 index fell 176 points to 17,646.
Weighing in on equity markets Oil prices hit their highest level since November 2014, with investors worried that rising energy costs could force central banks to raise rates more quickly to cope with rising inflation. .
The euro STOXX 600 fell 1.8 percent, denting its best day in 11 weeks on Tuesday, with tech stocks down more than 2 percent and Germany down 1.6 percent.
Back home, selling pressure was widespread as all 15 sector gauges compiled by the National Stock Exchange ended lower on the back of the Nifty Metal index falling nearly 3 per cent.