(RTTNews) - After moving sideways in the past three sessions, the Indian market traded relatively subdued before ending modestly lower on Friday, as a fresh spike in crude prices amid reports of Libyan oil fields on fire sparked inflation and interest rate worries. Rising oil prices will bring down the growth rate of the Indian economy to 8.2 percent in the current fiscal year, down from 8.6 percent last year, as high oil prices coupled with monetary tightening will squeeze aggregate demand, the Asian Development bank said yesterday. As pressure on oil supplies mount, the International Monetary Fund also warned that the global economy was entering a period of scarcer oil that could drive prices rapidly. Crude futures for May delivery were up over a percent at $111.58 a barrel in late Singapore trading amid concerns about supplies from oil-rich countries and a weaker U.S. dollar. After rising by over 100 points or about half a percent early in the session, the benchmark 30-share BSE Sensex pared gains and ended down 140 points or 0.71 percent at 19,451, with 25 of its components ending in the red. The broader Nifty index ended down 44 points or 0.74 percent at 5,842. Infrastructure firm Jaiprakash Associates led the decliners in the Sensex pack with a 3.8 percent loss. Property developer DLF slumped 3.7 percent, automakers such as Tata Motors, Maruti Suzuki and Hero Honda Motors fell by 2-3 percent, energy giant Reliance Industries shed 1.53 percent and telecom firm Reliance Communication ended down 1.31 percent. IT stocks such as Infosys, TCS and Wipro fell between half a percent and 1.5 percent after the Indian rupee rose to a 5 1/2 month high past 44 to the dollar early in the session. Heavyweight banking stocks closed in the red on worries that inflationary pressure would squeeze their profit margins. ICICI Bank eased 0.4 percent and HDFC Bank edged down 0.12 percent. SBI ended down a percent after appointing a new chairman. Shipping stocks came under pressure after the shipping secretary reportedly ruled out announcement of subsidy for ship-building any time soon. GE Shipping fell 2.64 percent, Mercator Lines plunged 4.53 percent, ABG Shipyard declined 1.71 percent and Bharati Shipyard ended down 3.65 percent. In the metal pack, Tata Steel after lost 1.23 percent after reporting a 3.8 percent rise in hot metal production in 2010-11. Hindalco Industries fell about 3 percent and Sterlite Industries posted a modest 0.2 percent loss. GVK Power and Infrastructure, which is reportedly in talks with Standard Chartered and ICICI Bank to fund its possible acquisition of two Australian coal mines owned by Hancock Prospecting, ended down 4 percent.

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