Sensex sheds over 500 pts as crude at USD 102/bbl

The selling spree continued in the equity benchmarks - the Nifty broke the 5250 level by shedding nearly 200 points and the Sensex crashed more than 600 points at 15:08 hours.

Rising concerns in Libya could spread over to other oil producing countries in Middle East like Saudi Arabia, which pushed the crude oil prices up to USD 102 a barrel on New York Mercantile Exchange and London brent crude touched USD 120/barrel.

Experts believe that rise in crude will have impact on country's growth by growing inflation and fiscal deficit worries.

Emil Wolter, Head of Regional Asian Equity Strategist at RBS told CNBC-TV18 that the fiscal deficit in India has become very challenging and that he sees the fiscal deficit touching 7% if crude continues to remain at elevated levels.

On India