Indian stocks fall 0.5% to monthly lows as oil rise deepens pressure

Indian stocks closed firmly lower on Tuesday, marking their weakest levels so far this month, as rising Middle East tensions and higher oil prices darkened the macroeconomic outlook. The S&P/BSE Sensex fell 0.5% to 78,154 and the NSE Nifty 50 dropped 0.5% to 24,472. Crude oil and refined fuel prices extended gains after US President Trump hardened his stance on Iran and said the US could force a deal by waiting until Iran's economy deteriorates further. For India, higher oil prices raise import costs, can accelerate capital outflows, weigh on the rupee and reduce the appeal of domestic assets for foreign investors. Costlier energy also adds pressure on the RBI (India's central bank) to tighten policy. Financial stocks led losses, with InduSind Bank, Axis Bank and Bajaj Finance down more than 1%, while energy-dependent consumer goods names including Neste and Hindustan Unilever also fell over 1%.

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