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

Business Recorder reported that Indian shares slipped on Tuesday as renewed fighting between the United States and Iran lifted crude oil and bond yields. The Nifty 50 closed 0.1% lower at 24,055.8, while the BSE Sensex eased 0.02% to 76,944.28. Banks gave back the gains they had recorded in Monday's closing auction session, and the banking index dropped 1.1%.

Brent crude futures climbed 2% to above $92 per barrel after fresh clashes between the U.S. and Iran, adding to worries about inflation and tighter monetary policy. Reliance Industries rose 2.5% after Jefferies lifted its view on the stock, citing higher refining earnings, while Kotak Mahindra Bank gained 1.3% after Reuters reported that the lender had put forward two internal candidates for chief executive.

Maruti Suzuki dropped 4.4% as its sales for August declined compared with July, and the auto index lost 1.2%. Happiest Minds lost 10.9% once ITC's IT arm agreed to take a 22.1% holding in the company, while ITC itself rose 4.3%. Sunny Agrawal of SBICAPS Securities described the pressure as largely international, tied to crude prices, and noted that the closing auction system and a robust IPO pipeline were also restraining secondary markets despite an economy performing well. Separately, the economy recorded year-on-year growth of 7.8% in April to June, above forecasts.