MUMBAI: Indian shares declined on Tuesday, as higher crude prices hurt sentiment and banking stocks came under pressure after the Reserve Bank of India’s final credit-loss guidelines.
Brent crude rose above USD110 a barrel as efforts to end the Middle East war appeared to have stalled.
Higher oil prices are a negative for India, the world’s third-largest crude importer, due to heightened inflation risks and pressure on economic growth and corporate earnings.
The Nifty 50 fell 0.4 percent to 23,995.70, while the BSE Sensex shed 0.54 percent to 76,886.91.
Both benchmarks rose about 0.3 percent in the first hour, but reversed course ahead of the monthly derivatives expiry.
Ten of the 16 major sectors logged losses. High-weight banks, private banks and state-owned lenders lost 1.5 percent, 1.2 percent and 2.2 percent, respectively, after the RBI’s new rules.