BENGALURU, May 11 Reuters Indian shares on Wednesday fell to their lowest in two months, extending losses for a fourth straight session as oil prices rose, while investors kept an eye out for U.S. inflation data for cues on the Federal Reserve39;s rate hike plans.

The NSE Nifty 50 index was down 0.45 at 16,167.10 at the close, while the SP BSE Sensex fell 0.51 to 54,088.39. The indexes fell as much as 1.5 in the session to their lowest since March 9.

The Nifty39;s smallcap index extended losses to an eighth straight session, closing down 2.9.

Oil rose on Wednesday over supply concerns as the European Union worked on gaining support for a ban on Russian oil and major producers warned they may struggle to fill the gap when demand improves.

India is the world39;s thirdlargest importer and consumer of oil, and a rise in crude prices tends to push the country39;s trade and current account deficit higher.

Rise in oil prices is one of the reasons for fall in equities given India39;s vulnerability, but I mostly think it is in anticipation of inflation print that is going to come for U.S. and India, Yesha Shah, head of equity research at Samco Securities, said.

India39;s retail inflation data for April is due on Thursday and a Reuters poll showed that inflation likely surged to an 18month high. 

Reliance Industries, Bajaj Finance and Bajaj Finserv led losses on the Nifty 50, falling between 1 and 2. Shree Cement was the top percentage loser on the Nifty 50, declining 4….