India's key stock index drops more than 4 percent on surging oil prices

Indian stocks have plunged amid jitters about rising inflation and soaring global oil prices.

The benchmark Sensex index was down 557 points, or 4.1 percent, to 12,904 in late afternoon trading Tuesday.

Last week, the government said India's inflation in the first week of June rose to a 13-year high of 11.4 percent.

Analysts said the markets were reacting to sinking global markets as oil prices climbed to US$142 a barrel Tuesday.