Indian shares post fourth consecutive day

Indian shares closed lower on Monday for a fourth consecutive session and the rupee settled at near record lows, with investors on edge over worries the spike in global oil prices would lead to higher domestic inflation.

The blue-chip NSE Nifty 50 index fell 2.35 per cent to 15,863.15 at close and the S&P BSE Sensex dropped 2.74 per cent to 52,842.75. Earlier in the session, both the indexes had fallen over 3per cent.

The Indian rupee fell to a record low at 76.97 against the dollar earlier in the day, settling 1.05 per cent weaker at 76.96.

The benchmark 10-year bond yield rose to 6.891per cent from the previous close of 6.813 per cent.

Oil prices soared to their highest since 2008 on Monday, after the US and European allies explored a Russian oil import ban, while delays in the potential return of Iranian crude to global markets increased supply fears.

India imports over two-thirds of its oil requirements, and higher prices push up the country’s trade and current account deficit while also hurting the rupee and fuelling imported inflation.

“Perception that a lot of foreign investors will have is emerging markets like India carry an additional risk factor in terms of all these macro dynamics playing out and, as a safety measure, there is a move towards the dollar,” said Mayuresh Joshi, head of equity research at William O’Neil & Co, India.