Stocks in India crashed on Monday to their lowest level of the year on heightened concerns over skyrocketing crude oil prices and fears of uncontrollable inflation. Market observers in the Far East said that traders reacted to the super spike of $10 in crude oil prices and the disappointing U.S. unemployment report that helped take the Dow down 400 points on Friday. The Sensex Index dove past the psychologically important level of 15,000 before rebounding to close slightly above the key mark.
Market players are worried that inflation, which is already running at 8%, is spiraling out of control after the government initiated fuel price hikes last week.
"Investors are panicky about the overall market scenario as they feel there might be further rise in inflation. It will take some time for the market to adjust to the emerging global economic scenario due to the rise in crude oil prices," said S.P. Tulsian, financial analyst and CEO of Tulsian.com.
The Bombay Stock Exchange's Sensex Index plunged 505 points, or 3.2%, to 15,066.10 Here's a look at how some India-based American depositary shares traded in the U.S. on Monday.According to a report from the Economic Times, Indian auto maker Tata Motors (TTM) has been approached by executives from General Motors (GM) about the possible sale of its high-end SUV brand Hummer. Tata declined to comment on the report. Tata also announced it has launched two new heavy commercial vehicles that include the Tata LPS 4930 Novus heavy-duty tractor and the Tata LPT 2516 super turbo heavy-duty truck. The company said that the LPT 2516 will have 10% better fuel efficiency than its nearest competitor and that the LPS 4930 will be outfitted with a Cummins (CMI) 245ph engine and Eaton (ETN) gear box. Both HCVs will be sold in Jharkhand. American depositary shares of Tata, which trade on the NYSE, fell 2.6% to $12.17.