The Sensex and Nifty fell to their lowest levels in two months on Wednesday, extending losses for a fourth straight session as oil prices rose as investors eyed US inflation data for clues about the Federal Reserve’s rate hike plans.
The NSE Nifty 50 Index was down 0.45 percent or 72.95 to 16,167.10 at the close, while the S&P BSE Sensex was down 0.51 percent or 276.46 points to 54,088.39. Indexes fell as much as 1.5 percent during the session to their lowest level since March 9, according to a Reuters report.
The Nifty small-cap index extended losses for the eighth consecutive month, closing 2.9 percent.
Oil rose on Wednesday on supply concerns as the European Union worked to win support for a ban on Russian oil, and major producers warned they could struggle to close the gap if demand improves.
India is the world’s third largest oil importer and consumer, and increases in crude oil prices tend to push up the country’s trade and current account deficits.
“The rise in oil prices is one of the reasons (for the fall in stocks) given India’s vulnerability, but I mainly think this is the anticipation of inflation that’s coming for the US and India,” said Yesha Shah, head of the Stock analysis at Samco Securities, Reuters reports.
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Reliance Industries, Bajaj Finance and Bajaj Finserv led losses in the Nifty 50, falling between 1 percent and 2 percent. Shree Cement was the biggest percentage loser on the Nifty 50, down 4 percent.
Technology stocks Infosys and Wipro each fell over 1 percent and were among the top losers on the Nifty 50 index.
Among the few gainers, gas distributors Indraprastha Gas, Mahanagar Gas and Gujarat Gas were up between 1 percent and 6 percent.
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