Indian benchmark shares subdued after recent drop as oil worries outweigh banking gains

Indian benchmark equities were subdued on Thursday, with the Nifty closing largely flat as risk aversion sparked by elevated oil prices outweighed gains in banking stocks following the central bank’s stronger-than-expected dollar mobilisation. The BSE Sensex plunged as much as 2.5% during the closing auction, with the index extending losses on weekly derivatives expiry as volatility during the closing auction intensified. The Nifty 50 fell 0.17% to 23,873.45 and the Sensex shed 0.55% to 76,152.86 at the close. The Nifty and Sensex were down 0.04% and 0.02%, ahead of the closing auction session. The closing auction session is already reshaping options trading, prompting participants to trim positions and ramp up hedges as wild swings in the final 15 minutes make closing levels increasingly difficult to call. The benchmarks had lost about 1% each over the past three sessions, pressured by climbing crude prices and rising global bond yields. Brent crude rose 1% to $96.6 a barrel after renewed military strikes between the U.S. and Iran intensified inflationary, energy supply worries. Nine of the 16 major sectors declined. Banks, financials, private lenders and state-owned banks climbed