Indian shares extend losing run on elevated oil, bond yields

MUMBAI: Indian share benchmarks extended their losing run on Tuesday as the absence of a Middle East peace deal drove up oil prices and bond yields, stoking concerns about foreign investor outflows from the local market.

The Nifty 50 lost 0.28percent to 22,716.2 and BSE Sensex fell 0.33percent to 72,529.07. The indicative closing level of the 50-stock index briefly slumped 2.5percent during the closing auction session, amid volatility due tomonthly expiry of derivatives contracts.

The benchmark indexes have shed close to 2percent so far in a holiday-shortened week, on top of a nearly 6percent drop in the last seven weeks, one of their longest losing streaks on record.

Brent crude futures hovered around USD105 a barrel, while the benchmark 10-year US Treasury yield spiked to a 19-year high above 5.27percent. “Rising US Treasury yields have raised the risk-free return available to global investors, making the (premium) on offer in Indian equities relatively less compelling.