Indian shares edge lower on higher crude prices, bond yields; banks, autos lead losses

Indian shares edged lower on Tuesday as escalating Middle East tensions pushed oil prices and bond yields higher, while heavyweight banks reversed Monday’s closing auction gains. The Nifty 50 fell 0.1% to 24,055.8 and the BSE Sensex shed 0.02% to 76,944.28. The indexes were down 0.4% and 0.3%, respectively, at 3:15 p.m. IST ahead of the beginning of closing auction session (CAS). Heavyweights Reliance Industries extended gains to 2.5% from 2% ahead of CAS window, while ICICI Bank pared losses to 1.1% as against 1.8% before CAS. Twelve of the 16 major sectors logged losses. Bank index fell 1.1%, reversing the roughly 500-point gain it recorded in the CAS on Monday. The broader small-caps and mid-caps lost 0.2% and 1.4%, respectively. Global bond yields and oil prices jumped as traders fret about oil-driven inflation, monetary tightening and worsening fiscal conditions. Brent crude futures jumped 2% to over $92 per barrel after renewed fighting between U.S. and Iran. Foreign buying in Indian stocks hits 23-month high in August, depository data shows “The challenges (for Indian market) are more global in nature, with investors watching movement in crude oil prices,” said Sunny Agrawal