MUMBAI: Indian shares fell on Monday as higher crude prices and fears of US rate hikes hurt investor appetite, with an MSCI index rejig combined with a new stock closing mechanism triggering sharp stock-specific swings.
Global markets were subdued as fresh fighting between the US and Iran pushed oil prices higher, while borrowing costs in Germany and Japan hit fresh multi-year highs amid rising odds of a near-term US rate hike.
India imports 85 percent of its crude needs and a sustained rise in prices could lead to interest rate hikes.
The country’s Nifty 50 fell 0.39 percent to 24,080.40 points and the BSE Sensex shed 0.4 percent to 76.957.27. The indexes fell 1.2 percent and 1.5 percent in August.
They were trading 0.52 percent and 0.44 percent lower ahead of the closing auction session.
The heaviest weighted stock on Indian benchmarks, HDFC Bank, fell 1.6 percent, reversing early gains, after the top private lender said its CEO Sashidhar Jagdishan decided to not seek reappointment at the end of his term in late October.
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