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Indian shares decline on inflation fears

October 04, 2022 00:00:00

BENGALURU, Oct 03 (Reuters): Indian shares fell on Monday, weighed by losses in metals, banks and auto companies, on renewed fears of spike in inflation on the back of surge in crude prices amid lingering concerns over global growth.

The NSE Nifty 50 index fell 1.2 per cent to 16,887.35 and the S&P BSE Sensex was down 1.1 per cent at 56,788.81.

The metals index fell 3 per cent, while the auto index dropped 2 per cent and the bank index dropped lost 1.6 per cent.

Eicher Motors was the biggest loser in Nifty 50 index, falling 5.7 per cent.

Adani Group stocks were among the top losers, with Adani Enterprises, Adani Power, Adani Green Energy, Adani Ports, Adani Wilmar, Adani Total Gas, Adani Transmission falling between 4 per cent and 9 per cent.

"A few things like crude prices moving higher are coming in as negatives. These are keeping markets a little volatile," said A.K. Prabhakar, head of research at IDBI Capital.

Global oil prices rose $4 per barrel on Monday, as OPEC+ considers cutting output by more than 1 million barrels a day, its biggest reduction since the start of the COVID-19 pandemic.

A rise in global oil prices is likely to affect inflation domestically, as India meets majority of its oil needs through imports.

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