New Delhi, Sept. 29 -- Extending seven straight weeks of losses, Indian shares took a fresh beating on Monday, with the BSE Sensex losing 1.5% to reach its lowest in nearly six months. The selloff was across sectors, followed routs in Korean and Chinese equities, and came as oil prices surged above $108 a barrel.

This was triggered by the US rejection of Iran's peace-deal proposal that dimmed hopes of this conflict coming to an end anytime soon. After having stayed oddly moderate for a stretch, oil prices have again cast a shadow over India's economy.

Given India's reliance on energy imports, India's external balances could come under another round of pressure, even as fuel costs impact inflation. That US bonds have begun yielding more ...