Indian stocks slip to six-week low as IT slides, oil worries mount

Indian shares fell to a six-week low on Monday, according to Business Recorder, as IT stocks led the decline and worries about Middle East tensions and a possible U.S. rate increase weighed on sentiment. The Nifty 50 finished 0.5% lower at 23,779.15, while the BSE Sensex dropped 0.5% to 76,132.81. Fourteen of the 16 major sectors ended in negative territory.

The IT sub-index dropped 2.3% after stronger U.S. employment figures raised expectations of a Federal Reserve rate increase in September. Higher American interest rates could reduce client spending and hurt Indian IT firms that earn a large share of revenue from the United States. Brent crude futures gained 0.6% to $96.8 a barrel after the U.S. and Iran struck vessels in the Strait of Hormuz and other areas, adding to concerns about inflation.

Among individual stocks, PVR Inox dropped 6.1% after reports of an internal probe into alleged 2 billion rupee kickbacks linked to an executive involved in cinema property projects, though the company said its preliminary review found no such evidence. Zee Entertainment shares fell 6.4% after media reports said a leading national investigating agency registered an FIR against founder Subhash Chandra and others over alleged fraud involving LIC Housing Finance. Chandra's office had not immediately replied to queries.