Indian shares fall on likely lockdown extension, oil price rise

[MUMBAI] Indian shares slipped on Monday as Asia's third-biggest economy looked set to extend a lockdown to contain the spread of the coronavirus, while a rise in oil prices also weighed on sentiment.

The NSE Nifty 50 index fell 0.55 per cent to 9,069.55 by 0348 GMT, while the benchmark S&P BSE Sensex was down 0.45 per cent at 31,000.67 as trading resumed after a three-day weekend.

India will extend its 21-day lockdown due to end Tuesday, according to a state chief minister with knowledge of discussions among top officials, although the federal government has yet to make an announcement. As of Sunday, the country has reported 8,356 confirmed cases and 273 deaths.

Sentiment was also hit by a more than US$1 (S$1.42) a barrel jump in oil prices after top producers agreed to their biggest-ever output cut. India is one of the world's top oil importers, making it susceptible to higher crude prices.

Conglomerate Reliance Industries was the biggest drag on the indexes, falling as much as 2.5 per cent, while private-sector lender Kotak Mahindra Bank dropped 3.5 per cent.

Data due later in the day is expected to show India's retail inflation dropped to a four-month low in March on softer food and fuel prices and as demand likely plummeted due to the lockdown, according to a Reuters poll.

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REUTERS