Refile: INDIA STOCKS-Indian shares fall as oil concerns persist

Infosys

Yesterday 04:23

Corrects to add missing words in paragraph 8
By Bharath Rajeswaran and Vivek Kumar M
Oct 26 (Reuters) - Indian shares declined on Monday as sentiment remained subdued over elevated crude oil prices and their impact on inflation, with investors focused on the US Federal Reserve's policy decision later this week.
 The benchmark Nifty 50 .NSEI fell 0.5% to 22,485.65, and the Sensex .BSESN shed 0.46% to 72,783.15, as of 9:47 a.m. IST (0417 GMT).
 Twelve of the 16 major sectors logged losses. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 lost 0.7% and 0.4%, respectively.
IT stocks .NIFTYIT shed 1.1%. Infosys INFY.NS lost 2% after it cut its annual revenue growth forecast as weakness in its key North American market outweighed its higher-than-expected revenue.
  Brent crude futures LCOc1 traded around $114.5 a barrel, easing from a near six-month high of $117 after the Indian market close on Friday, though ongoing attacks on Saudi Arabia by Yemen's Houthis kept supply concerns in focus. O/R
"Concerns over supply disruptions due to escalating Mideast tensions pushed crude oil prices higher," said G Chokkalingam, founder and head of research at Equinomic Research. 
 "Domestic equities are likely to remain highly volatile, with a short-term downward bias and unless the Mideast conflict is resolved meaningfully, higher energy costs could reignite global inflation, restrain economic growth and darken the outlook for stock markets worldwide," he said.
Investor caution was further reinforced by expectations that the US Federal Reserve will hold interest rates steady this week before resuming its tightening cycle with a December increase. 
 Higher US rates typically draw capital toward the dollar and Treasuries, reducing the appeal of emerging-market equities including India.
 Among stocks, Shriram Finance SHMF.NS lost 5% after cutting its annual loan-growth forecast and flagging higher credit costs, eclipsing stronger-than-expected quarterly profit. Kotak Mahindra Bank KTKM.NS gained 2.3% after second-quarter profit beat on robust loan demand and lower bad-loan provisions. 
Dr Reddy's Laboratories REDY.NS gained 3% after posting higher-than-expected September quarter profit, as domestic demand cushioned weakness in its crucial US market.
     

 (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sherry Jacob-Phillips, Sonia Cheema and Jochelle Mendonca)
 ((VivekKumar.M@thomsonreuters.com;))