India's key indices rise as investors recover from losses, but energy shortages continue to affect households and businesses amid escalating Middle East conflicts.
India's BSE Sensex and NSE Nifty 50 indices rose on Friday, with the Sensex up 1.35% and the Nifty 50 up 1.37% as of 11 a.m. local time, following a sharp sell-off that erased nearly Rs 12 lakh crore in investor wealth.
The sell-off on Wednesday was triggered by soaring Brent crude oil prices above $118, fueled by Iran's threats of "zero restraint" amid the US-Israel war and attacks on energy infrastructure, including Qatar's Ras Laffan gas field.
Impact on Indian Energy Supplies
India, the world's second-largest LPG importer, faces ongoing shortages as attacks in the Middle East disrupt supplies, with 65% of its LPG needs transiting through the Gulf of Hormuz and about one-third coming from Qatar.
The Indian government is responding by increasing domestic LPG production by at least 25%, as stated by the finance minister, and encouraging the use of alternative fuels like kerosene, coal, biomass, and piped natural gas.
Foreign ministry spokesperson Randhir Jaiswal announced efforts to import LPG from all available sources, including Russia, to mitigate the crisis affecting households and businesses.
Consumers report difficulties, with some eateries in Delhi shutting down due to unavailable cylinders or black market prices three times the official rate, while households conserve gas by limiting cooking.
The petroleum ministry has classified energy data as a national security matter and mandated detailed reporting from oil and gas entities to manage the shortages effectively.
