10:00AM New York, 7:30PM Mumbai – Indian stocks decline as crude oil price spike on Israel threat of Iran attack.

India markets highlights

The key benchmark indices fell on Monday as market feared that a sharp increase in international crude price will stoke further inflation.

At close of the trades, the 30-share BSE Sensex dropped 3.3% or 506.08 at 15,066.10. On the National Stock Exchange, the S&P CNX Nifty fell 2.7% or 126.85 at 4,500.95.

Of the BSE shares, 474 shares gained, 2,170 declined and 49 shares remained unchanged. Among the 30-share Sensex stocks, 27 gained while 3 stocks declined.

Trading statistics

Daily revenue on the BSE stood at 5,039 and turnover on the NSE was recorded at 13,300 crore rupees.

Reliance Industries was the most active stock on the BSE with a trading turnover of 372.06 crore rupees followed by Reliance Petroleum, Cairn India, Reliance Communications and Reliance Capital.

IFCI clocked the highest volume of 1.92 crore shares on the BSE followed by Reliance Petroleum, Reliance Natural Resources, Ispat Industries and Cairn India.

Call to increase oil output

The Group of eight rich nations (G-8) and China, India and South Korea on Monday there was an urgent need to boost global oil production after a price spike. Ministers meeting in Aomori, Japan, said there was an urgent need for increased and timely investment in the energy sector.

The meeting came after oil prices on Friday posted their record one-day gain of nearly $11, hitting a new record of $138.54 a barrel in New York trade.

Oil prices have soared five-fold since 2003 due to a variety of factors including the U.S. occupation of Iraq, weak dollar and sustained demand from the U.S, China and Asian nations.

Gold imports for May declines

May gold import fell 54% from a year ago as consumers curtail purchases on a sharp rise in international price.

The gold imports fell to 32 metric tons, compared with 69 tons a year ago, according to a provisional data compiled by the Bombay Bullion Association, which represent nearly 250 companies in the trade. India is the largest gold importer.

The precious metal import in the peak season of November and December during Diwali holidays last year fell to 12 metric tons, a plunge of 75% from a year ago.

Gold prices have advanced 31% in the past year, reaching a record $1,030.70 an ounce in March in the global markets, eroding the global demand.

India remains vulnerable to U.S. economic slow-down

Emerging economies such as China and India are growing faster than the rest of the world but still lack the domestic economic size to offset the weaker growth in the US and European Union, Fitch Ratings said on Monday. The bond rating agency also predicted that India is vulnerable to economic slow-down in the U.S.