Sensex ends 227 points lower, Nifty dips below 10,250 on inflation fears

The benchmark indices settled lower on Tuesday on concerns that higher global crude oil prices would stoke inflation and impact future interest rate decisions by the Reserve Bank of India (RBI), with oil marketers and bank stocks weighing on the Nifty50.

Brent crude oil, the international benchmark for oil prices, jumped above $65 per barrel for the first time since 2015 after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market that was already tightening



due to OPEC-led production cuts.

The Nifty Bank index fell as much as 1% after gaining 2.2% in the last three sessions. Oil marketers Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Indian Oil Corp lost as much as 2-3%.

Overseas, Asian shares took a small step back on Tuesday after three straight sessions of gains, with markets consolidating in the hope an upswing in global growth could outlast a likely hike in US borrowing costs this week.