Reuters Market Eye - Shares in state-owned oil companies fall after Moody's said credit quality of Indian oil companies may weaken if the government continues to use the same subsidy-sharing mechanism as it did for the June quarter.
Moody's add the fuel subsidy for July-September will likely rise to 350 billion-400 billion rupees compared with 256 billion rupees in April-June due to the ongoing depreciation of the rupee and the rising crude oil prices.
The rupee slumped to a record low in early trade on Tuesday and bond yields hit another five-year high as Asia's third-largest economy bore the brunt of growing money flows out of emerging markets.
Oil and Natural Gas Corporation Ltd is down 3.98 percent while Indian Oil Corporation Ltd falls 0.6 percent.
(Reporting by Abhishek Vishnoi)