MUMBAI (MarketWatch) — Indian stocks slumped, tracking Asian markets lower after a powerful earthquake shook Japan, triggering a tsunami that hit the country’s northern coast and sending tremors that shook Tokyo.
Indian stocks were also on track for a weekly loss, with investors concerned that the recent surge in crude oil prices will lead the Reserve Bank of India to deliver another hike in interest rates next week.
The Sensex (XX:SENSEX 18,174, -153.89, -0.84%) was down 197 points, or 1%, at 18,131, near its lowest level of the session of 18,200. The S&P/CNX Nifty Index (XX:NIFTY 5,445, -48.95, -0.89%) fell 1% to 5,436.75.
Shares of Bharat Heavy Electricals (IN:500103 1,975, -74.50, -3.64%) fell the most on the Sensex, losing nearly 4%.
In Tokyo, the Nikkei Stock Average (JP:NI225 10,254, -179.95, -1.72%) ended 1.7% lower. Only a few casualties were reported from quake so far. But there already were concerns of an impact to Japan’s economy from potential damage to its industrial infrastructure.
A major oil refinery owned by Cosmo Oil Co. (JP:5411 2,493, -10.00, -0.40%) was on fire in Chiba, northeast of Tokyo.
JX Nippon Oil & Energy Corp. (JP:5411 2,493, -10.00, -0.40%) , another refiner, halted operations at its refineries in three cities, including in Sendai, where the airport was flooded after the tsunami hit.
On the Bombay Stock Exchange, the power, capital goods, and auto sectors led the way lower.
Besides autos, rate-sensitive financial stocks were also under pressure, as investors were concerned ahead of wholesale inflation figures due on Monday, just two days ahead of the Reserve Bank of India.
The central bank is again expected to deliver a quarter-point hike.
