Indian shares slide as oil nears $100; Nifty turns volatile during closing auction

Business Recorder reported that Indian shares extended their decline on Tuesday as Brent crude climbed 1.4 per cent to $98.4 a barrel amid escalating Middle East tensions. The Nifty 50 closed 0.61 per cent lower at 23,635.1, while the BSE Sensex slipped 0.73 per cent to 75,577.58. Losses deepened during the closing auction for the weekly derivatives expiry, when the Nifty's indicative close had fallen as much as 1.8 per cent.

The closing auction session, introduced on August 3, has amplified swings on weekly and monthly expiry days, the publication noted. HDFC Bank's indicative close dropped as much as 3.91 per cent during the auction before the stock finished 1.1 per cent lower. Gaurav Udani of Thincredblu Securities said the mechanism has made expiry-day trading harder to predict for systematic options strategies.

Eight of the 16 major domestic sectors finished in negative territory, with private banks down 1 per cent and ICICI Bank losing 2 per cent. Defence shares gained 2.5 per cent after India cleared defence procurement proposals worth 1.1 trillion rupees. Over the past seven sessions, both benchmarks have declined 2.2 per cent each, with six of those sessions closing lower.