Sensex, Nifty End Sharply Lower; HDFC Bank Shares Tumble Over 3%

(RTTNews) - Indian shares fell sharply on Tuesday as investors waited for the release of key U.S. inflation readings this week that could influence the Fed's rate trajectory.

A sharp surge in oil prices also weighed on markets after Ukraine said it has seized 1,000 sq km (386 square miles) of Russia's bordering Kursk region and Russian President, Vladimir Putin, vowed a "worthy response" to the attack.

Elsewhere, the United States said it's preparing for significant attacks by Iran or its proxies against Israel as soon as this week.

Investors also reacted to mixed signals on the domestic economy.

India's retail inflation slowed in July to 3.54 percent, its lowest in nearly five years as food prices eased from previous highs due to a base effect, government data released after market hours on Monday showed.

A separate report revealed that India's industrial output growth declined to a 5-month low of 4.2 percent in June as a result of a slowdown in the government capex amidst elections and lackluster rural demand.

The benchmark S&P/BSE Sensex fell 692.89 points, or 0.87 percent, to 78,956.03 while the broader NSE Nifty index settled at 24,139, down 208 points, or 0.85 percent, from its previous close.

State-run oil marketing firm BPCL sank 3.5 percent after oil prices jumped more than 3 percent on Monday amid heightened tensions in the Middle East.

HDFC Bank shares tumbled 3.3 percent. The weightage of the private sector lender in the Global Standard index will be raised in two tranches, MSCI said.

ONGC, Shriram Finance and HDFC Life dropped 2-3 percent while Titan Company shares surged 1.9 percent and Apollo Hospitals Enterprise added 1.5 percent.