Updates for morning trade

By Bharath Rajeswaran

May 18 (Reuters) - Indian shares declined, and the rupee slid to a record low in early trade on Monday, as oil prices jumped after a drone attack on a nuclear power plant in the United Arab Emirates intensified tensions in the Middle East.

The mood was further dampened after U.S. President Donald Trump warned that "the clock is ticking" for Iran, as efforts to end the Middle East conflict appeared to have stalled.

The Nifty 50 .NSEI fell 1.26% to 23,347.2, and the BSE Sensex .BSESN lost 1.20% to 74,335.62, as of 10:05 a.m. IST.

Fifteen of the 16 major sectors declined. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 lost 2.1% and 1.6%, respectively.

The rupee INR=IN weakened to an all-time low as higher oil prices sent global bond yields soaring.

Brent crude LCOc1 rose to $112 a barrel, a two-week high. Other Asian markets .MIAPJ0000PUS fell 0.8%.

"Markets are likely to remain under pressure in the near term, as drone attacks in the Middle East have accelerated the surge in oil prices," said G. Chokkalingam, founder and head of research at Equinomics Research.

"Elevated crude prices and the resulting widening of the trade deficit are putting significant pressure on the rupee. That, in turn, is fueling continued foreign outflows and weighing on domestic equities."

Foreign portfolio investors have sold Indian stocks worth $23.52 billion so far this year, already surpassing record annual outflows of 2025.

Heavyweights HDFC Bank HDBK.NS and Reliance Industries RELI.NS lost 1.4% and 1%, respectively.

Tata Steel TISC.NS fell 5% after the steelmaker posted a smaller-than-expected fourth-quarter profit.

Power Grid PGRD.NS slid 4.1% despite the electric power transmission company reporting a nearly 10% rise in March-quarter profit. Motilal Oswal attributed the profit growth to a 52.8 billion-rupee deferred tax asset and said revenue and operating profit missed its estimates.

Bucking the trend, Gland Pharma GLAD.NS jumped 13.4% after the drugmaker reported a 97% rise in its March-quarter net profit.