Indian shares post worst day in 10 weeks on oil spike, proposed insurance curbs

Business Recorder reported that Indian equities posted their sharpest decline in ten weeks on Thursday, as costlier oil fuelled inflation worries and a proposed overhaul of insurance commissions pulled financial stocks lower. The Nifty 50 closed 1.64% weaker at 23,063.10, while the BSE Sensex slid 1.67% to 73,580.54. Both benchmarks registered their steepest single-session fall since July 8.

Brent crude rose 2.4% to $105.6 a barrel after Iranian President Masoud Pezeshkian told the UN General Assembly that Tehran would not give in to American pressure, while diplomatic contacts between Washington and Tehran showed few signs of advancing. Under the regulator's proposal, insurance payouts would be capped, commissions would depend on how complex a product is, and life insurers' commissions would be stretched beyond the first year of a policy. Banks fell 2% and financials 2.4%, while PB Fintech dropped 36% in its worst session on record and Turtlemint Fintech sank 20%.

Motilal Oswal analysts expect insurance brokers, banks and non-bank lenders to take a bigger hit than individual agents, and they said bancassurance is under close scrutiny. In their view, the proposed changes would have significant ramifications if implemented.