SerpApi.Org
By Bharath Rajeswaran and Vivek Kumar M
July 22 (Reuters) - Indian shares fell on Wednesday in a broad-based selloff as oil prices climbed to a more than five-week high amid an escalating Middle East conflict.
The benchmark Nifty 50 fell 0.69% to 24,021.75, while the BSE Sensex shed 0.73% to 76,903.37 by 9:55 a.m. IST.
Brent crude rose to $92.67 a barrel, highest since June 11 and on course for its fourth straight session of gain, on intensifying fears of further energy supply disruptions in the Middle East.
Two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea on Tuesday, while a tanker was hit in the Strait of Hormuz at the mouth of the Gulf.
Higher oil prices pose a key risk for India, the world's third-largest crude importer, by stoking inflation, widening the trade gap and squeezing corporate margins.
Fifteen of the 16 major sectors logged losses. The broader small-caps and mid-caps lost 1.3% and 0.9%, respectively.
The pharma index fell 2% after U.S. President Donald Trump outlined a phased tariff plan for imported generic medicines, giving drugmakers a two-year window before duties take effect.
"The headline is negative, but key details around implementation, legal challenges, exemptions and final scope remain unclear," said Niharika Agarwal, analyst at Nirmal Bang.
Among stocks, Bandhan Bank tumbled 14% after lowering its fiscal year return-on-assets outlook on expectations of narrower net interest margins and higher operating expenses.
Bajaj Auto and TVS Motor gained 3.4% and 4% after the automakers reported a quarterly profit rise.
Better-than-expected results from select firms are driving stock-specific moves, but Middle East tensions and elevated crude prices are keeping investors cautious, said Ajit Mishra, senior vice president of research at Religare Broking.
HDFC Bank lost 1%, taking their post-results drop to 8% in three sessions after posting weaker-than-expected net interest margin for the first quarter.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
