India benchmark shares fall as inflation woes overshadow RBI support measures

Indian benchmark indices slipped on Monday, according to Business Recorder, as traders weighed the Reserve Bank of India's newest steps to shore up the rupee. High crude costs and a feeble monsoon kept sentiment restrained. At the close, the Nifty 50 stood 0.7% lower at 22,363.35, while the Sensex shed 0.76% to 71,924.68.

Traders are now looking to local inflation numbers for signals on monetary policy, following the RBI's rate hike last week. Anita Gandhi of Arihant Capital Markets linked the mood to crude and monsoon trends, warning that higher prices could squeeze consumption and corporate profits. She also pointed to steady foreign selling and a crowded primary market draining funds from secondary stocks, which outweighed the central bank's support.

The rupee climbed 1% from near-record lows after the RBI changed rules on oil firms' dollar buying and hedging during the weekend, its steepest gain in half a year. Brent crude rose to $106 even after US President Donald Trump said Russia and Ukraine would stop energy strikes, as Middle East tensions kept prices high. Among stocks, Apollo Hospitals fell 3.2% after the Supreme Court questioned drug market controls, while Avenue Supermarts lost 4.3% as brokers pointed to squeezed margins after its September-quarter numbers.