BENGALURU, May 11 (Reuters) - Indian shares on Wednesday
fell to their lowest in two months, extending losses for a
fourth straight session as oil prices rose, while investors kept
an eye out for U.S. inflation data for cues on the Federal
Reserve's rate hike plans.
The NSE Nifty 50 index was down 0.45% at 16,167.10
at the close, while the S&P BSE Sensex fell 0.51% to
54,088.39. The indexes fell as much as 1.5% in the session to
their lowest since March 9.
The Nifty's smallcap index extended losses to
an eighth straight session, closing down 2.9%.
Oil rose on Wednesday over supply concerns as the European
Union worked on gaining support for a ban on Russian oil and
major producers warned they may struggle to fill the gap when
India is the world's third-largest importer and consumer of
oil, and a rise in crude prices tends to push the country's
trade and current account deficit higher.
"Rise in oil prices is one of the reasons (for fall in
equities) given India's vulnerability, but I mostly think it is
in anticipation of inflation print that is going to come for
U.S. and India," Yesha Shah, head of equity research at Samco
India's retail inflation data for April is due on Thursday
and a Reuters poll showed that inflation likely surged to an
Reliance Industries, Bajaj Finance and
Bajaj Finserv led losses on the Nifty 50, falling
between 1% and 2%. Shree Cement was the top percentage
loser on the Nifty 50, declining 4%.
Technology stocks Infosys and Wipro shed
over 1% each and were among top losers on the Nifty 50 index.
Among the few gainers, gas distributors Indraprastha Gas
, Mahanagar Gas and Gujarat Gas
settled between 1% and 6% higher.
India has mandated state-run GAIL to import gas
and buy from local fields to meet growing demand, according to a
(Reporting by Rama Venkat in Bengaluru; Additional reporting by
Gaurav Dogra; Editing by Vinay Dwivedi and Shounak Dasgupta)