Indian shares seen muted as Iran war keeps Brent near $89

Indian equities stayed under pressure on Tuesday, with the BSE Sensex closing about 0.6% lower at 77,235.5, its weakest finish since late July and a third straight daily loss, as elevated crude prices, ceasefire uncertainty involving the U.S. and Iran, geopolitical tensions and higher global bond yields reinforced a risk-off mood. Brent was described as near $89 after a 4.6% rise the previous week in one report and above $91 a barrel in both reports, sustaining concern over inflation and import costs for India, a major oil importer. Foreign portfolio investors sold 25.35 billion rupees of Indian shares on Monday, while domestic institutional investors bought 51.01 billion rupees. Losses were broad, led by IT and FMCG stocks, while individual share moves also included Colgate-Palmolive India down about 3%, Indo-MIM up 10% on earnings and Highway Infrastructure up 4% after a government contract win.

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