Why Markets Down Today?

The domestic markets posted losses this week on account of turmoil in Middle East and North Africa, which disturbed the indices across the globe. Violence in Libya led to a sharp surge in crude oil prices to a 30-month high level, which spooked the investor sentiments. Worries over rising crude oil prices that it would impact the economic growth led to a massive sell-off across the globe. India imports its 80% crude need and rising crude oil prices will affect its import bill and widen foreign deficit. Growing fears that unrest in Libya could spread to other top oil producers in the region and cut more output led to panic among the investors.During the week, the Sensex and the Nifty breached their crucial levels of 18000 and 5400 respectively. The Sensex swung 988 points and the Nifty 294 points during the week. To close the week, the Sensex shut at 17701, lower by 511 points or 2.80%, while the Nifty settled at 5304, down by 155 points or 2.85%. The indices fell in three out of five sessions of this week.