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Indian shares end lower as Tata Motors warns of chip shortage hit at JLR
Photo Credit: Reuters

Indian shares reversed course to tick lower on Tuesday, dragged down by losses in auto stocks after sector bellwether Tata Motors warned a worsening chip shortage would hit its Jaguar Land Rover unit.

The blue-chip NSE Nifty 50 index closed down 0.1% at 15,818.25, while the benchmark S&P BSE Sensex ended 0.04% lower at 52,861.18 after touching an all-time high earlier in the day.

Shares of Jaguar Land Rover parent Tata Motors dropped as much as 10% after it said that semiconductor supply constraints would deepen in the near term, impacting the unit's performance.

The Nifty Auto index which had risen 0.66% in the morning, ended 1.74% lower.

Billionaire Mukesh Ambani-owned Reliance Industries closed 1.2% lower, snapping two straight sessions of gains.

Airline stocks closed higher after the country's aviation ministry allowed an increase in capacity on domestic flights to 65% until July-end, from 50% earlier. Shares of IndiGo's parent, InterGlobe Aviation, and low-cost carrier SpiceJet ended up 0.7% and 0.1%, respectively.

State-owned oil explorers Oil and Natural Gas Corporation and Oil India Ltd rose 3.4% and 3%, respectively, as oil prices extended gains after OPEC+ nations called off talks on output levels.

Morepen Laboratories' shares soared as much as 15.2% after the drugmaker said it had started production of the Sputnik V COVID-19 vaccine.

Meanwhile, Indian bond yields jumped as a rally in global crude oil prices raised worries about higher imported inflation, while a selection of papers for this week's bond buyback by the central bank also disappointed investors.

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