BENGALURU: Indian shares tumbled and the rupee hit record lows on Monday, as a spike in oil prices on fears of a ban on Russian oil imports stoked worries about higher inflation and bigger current account deficit for the world's third-largest importer of crude.

The blue-chip NSE Nifty 50 index dropped 3.02% to 15,754.55 by 0503 GMT and the S&P BSE Sensex slid 3.21% to 52,587.46. Both the indexes extended losses to a fourth straight session.

The Indian rupee hit a record low at the opening deals on Monday, touching its weakest level ever at 76.96 over a surge in global crude oil prices.

Oil prices hit over $130 a barrel on Monday after the United States and European allies explored a Russian oil import ban, while delays in the potential return of Iranian crude to global markets sped up supply fears.

India imports more than two-thirds of its oil requirements, and higher prices push up the country's trade and current account deficit while also hurting the rupee and fuelling imported inflation.

"Implications for India with rising crude is that if crude sustains around or above 100, then every 10 dollar rise in crude effectively means that the net trade deficit for India goes up by $15 billion," said Mayuresh Joshi, head of equity research at William O'Neil & Co, India.

The perception that a lot of foreign investors will have is that emerging markets like India carry an additional risk factor in terms of all these macro dynamics playing out and, as a safety measure, there is a move towards the dollar, Joshi said.

The Nifty's bank index, financial services index , private sector bank index, auto index and IT index were among the top losers, dropping between 1% and 4%. (Reporting by Rama Venkat in Bengaluru; editing by Uttaresh.V)