BENGALURU: Indian blue-chips fell on Tuesday to log their worst month in 2023 as elevated US interest rates triggered persistent sales by foreign investors, while a rise in oil prices due to the Middle East conflict also added to the selling pressure.

The benchmark NSE Nifty 50 fell 0.32% to 19,079.60, while the S&P BSE Sensex settled 0.37% lower at 63,874.93. They have lost nearly 3% each in October.

The concerns around the Middle East conflict have led to a spike in oil prices, a negative for net importers like India.

More tellingly, the US Federal Reserve’s rhetoric of higher-for-longer rates has helped send US Treasury yields to multi-year highs, making them more attractive for investors.

As a result, foreign investors have offloaded 228.50 billion rupees ($2.74 billion) worth of Indian shares so far in October, the most for any month since January.

The Fed is widely expected to hold rates at its policy decision after the bell on Wednesday, but Chair Jerome Powell’s commentary will be key.