Fourteen of 16 major sectoral indices declined, while Brent crude traded near $97 a barrel.
MUMBAI:
Indian equities closed at their lowest levels in six weeks on Monday as technology shares fell and higher oil prices intensified concerns about inflation and corporate costs.
The Nifty 50 declined 0.5 per cent to 23,779.15, while the BSE Sensex lost 0.5 per cent to finish at 76,132.81. Over the past four weeks, the indices have fallen 2.7 per cent and 2.5 per cent respectively.
Fourteen of 16 major sectoral indices ended lower. The IT index dropped 2.3 per cent after stronger-than-expected United States employment data increased expectations of a Federal Reserve rate rise this month. Higher US borrowing costs can affect technology spending and capital flows into emerging markets.
Brent crude rose to about $96.80 a barrel amid escalating US-Iran tensions and uncertainty surrounding shipping through the Strait of Hormuz. Expensive oil presents a wider risk to India through its import bill, inflation and pressure on the rupee.
PVR Inox fell 6.1 per cent following reports that an internal inquiry examined alleged kickbacks connected with cinema-property projects. The company said its preliminary examination had not identified evidence of kickbacks.
Zee Entertainment lost 6.4 per cent after reports of an FIR alleging fraud involving founder and chairman emeritus Subhash Chandra and others. The accusation has not been adjudicated, and Reuters said Chandra’s office had not immediately responded to a request for clarification.
