Indian shares fell on Monday and the rupee declined after Prime Minister Narendra Modi urged a spate of measures, including fuel conservation, fewer imports and gold purchases, as surging energy prices pressure foreign exchange reserves.

India, the world’s third-biggest oil importer and consumer, late last month said there was no proposal to raise pump prices for diesel and gasoline, leaving it among the countries yet to raise prices despite the global surge.

The Nifty 50 fell 1.49 per cent to 23,815.85, while the BSE Sensex shed 1.7pc to 76,015.28. The rupee logged a record closing low of 95.31 per dollar, dropping about 0.9pc on the day — its steepest single-day drop since March 27.

Brent crude jumped more than 2.6pc to about $104 a barrel after US President Donald Trump on Sunday dismissed the Iranian response to Washington’s proposal for peace talks as “unacceptable”.

Arun Kejriwal, founder of Kejriwal Research and Investment Services, called the slide in markets in Monday’s session a “knee-jerk reaction” to the prime minister’s comments.

“The bigger overhang for Indian markets is oil refusing to fall and hold below $100 despite peace efforts between Iran and the US, which will keep weighing on sentiment,” he said.

Thirteen of the 16 major sectors logged losses. The broader small-caps and mid-caps declined about 1.5pc each.

Oil marketing companies Indian Oil, BPCL and HPCL fell about 2.3pc-3pc.

Index heavyweight Reliance Industries lost 3.3pc.

Travel-linked stocks such as Indian Hotels, Lemon Tree, Chalet Hotels, Thomas Cook and Yatra Online dropped between 1pc and 4.5pc.

Airline operator IndiGo lost 4.9pc.

Shares of jewellers also slumped. Titan, Senco Gold and Kalyan Jewellers lost between 6.7pc and 9.3pc.

State Bank of India fell 4.5pc, extending losses after missing quarterly profit view, dragging PSU banks 2.5pc lower.

Hyundai Motor India rose 2.8pc on a smaller-than-expected fall in quarterly profit, and agro chemicals firm UPL gained 3.6pc on quarterly profit rise.