Indian shares extend losing run on elevated oil, bond yields

Business Recorder reported that India's share indexes extended their losses on Tuesday, as no Middle East peace accord was reached and oil and bond yields rose. The Nifty 50 closed 0.28% lower at 22,716.2, while the BSE Sensex dropped 0.33% to 72,529.07. Brent crude hovered near $105 a barrel, and the 10-year US Treasury yield climbed above 5.27%, a 19-year peak.

Monthly derivatives expiry added to the volatility, pushing the Nifty down 2.5% at one point during the closing auction. The benchmarks have shed almost 2% this week, a period shortened by a holiday, and roughly 6% over the last seven weeks. Overseas investors sold stock worth about $558 million on Monday and have a net $2.17 billion of outflows in September so far, following two months of buying. The Nifty 50 is down 5.7% this month, against a drop of about 1% in MSCI's widest Asia Pacific index excluding Japan.

The report ties India's underperformance mainly to its reliance on imported oil, which raises inflation risks, widens the import bill and pressures growth and margins. 13 out of 16 major sectors finished in negative territory, with small caps and mid caps down 0.8% and 1%, while heavyweight banks slipped 0.4% and IT fell 1.5%. Tata Chemicals fell 4.5% and Tata Investment 2.9% as prospects for a Tata Sons listing dimmed.