By Chris Thomas
BENGALURU (Reuters) -Indian shares slipped on Tuesday after three straight sessions of gains, while the rupee fell to a record low, as oil prices rebounded after last week’s rout and fanned inflation worries.
The NSE Nifty 50 index dropped 0.65% to 15,728.8, as of 0449 GMT, and the S&P BSE Sensex slipped 0.64% to 52,821.25. The rupee hit a record low of 78.67 per dollar, compared with its previous close of 78.34. [INR/]
Declining oil prices had helped shares rebound in the last three sessions. However, crude climbed on Tuesday as major producers flagged capacity limits and the G7 discussed a potential price cap on Russian oil. [O/R]
“Oil will continue to boil in the $105-$115 range on supply concerns and the G7’s vow to further sanction Russia, which will serve as a negative to large oil importers like India,” said Prashanth Tapse, vice president (research) at Mehta Equities.
“The market is already facing a long list of challenges from expectations for slower economic growth around the world to the restraining effect of rising interest rates.”
Shares of Titan Company fell as much as 3.8% to a one-week low, while Asian Paints, which uses crude derivatives, slid more than 4% and was the biggest percentage loser on the Nifty.
The Nifty IT index slipped 1.3% after climbing sharply in the previous session.
Food delivery firm Zomato plunged more than 7%, heading for its second straight session of losses after announcing a deal to buy local grocery-delivery startup Blinkit.
Oil explorer ONGC climbed 3% and was on track for a third session of gains in a row.
Automaker Mahindra and Mahindra helped plug some losses on the Nifty, rising as much as 3.6%.
Brigade Enterprises jumped 5.8% after the company signed a deal to develop apartments in the south Indian city of Chennai.
Asian shares were trading lower after a volatile session on Wall Street overnight. [MKTS/GLOB]
($1 = 78.3000 Indian rupees)
(Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu Sahu)
