By Krishna V Kurup
Oil prices fell over 1 percent on Wednesday, after the International Energy Agency cast doubts over the past few months' narrative of tightening fuel markets. On the supply side, rising U.S. output also pressured prices.
The NSE Nifty was 0.21 percent lower at 10,164.85 as of 0535 GMT, while the benchmark BSE index declined 0.2 percent to 32,884.99.
"Increasing oil prices and cut in the GST (a new nationwide sales tax) is raising doubts as to how it will impact the fiscal deficit of the country," said Vinod Nair, Head of Research at Geojit Financial Services.
The Nifty Metal index slipped 1.9 percent, tracking lower global commodity prices.
Metal stocks Vedanta and Hindalco Industries Ltd fell 2.1 and 2.5 percent, respectively.
Sun Pharmaceutical Industries Ltd dropped 2.3 percent after the drugmaker's September-quarter profit plunged 59 percent, hurt by rising competition in the generics market and greater pricing scrutiny in the United States.
Oil refiners such as Hindustan Petroleum Ltd and aviation shares, including IndiGo Airlines' parent InterGlobe Aviation Ltd, jumped on plunging crude oil prices.
Hindustan Petroleum rose 2.6 percent, while InterGlobe Aviation gained 3.3 percent.
(Reporting by Krishna V Kurup in Bengaluru; Editing by Biju Dwarakanath)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)