BENGALURU, Dec 5 (Reuters) -

Indian shares declined on Monday, dragged by rise in oil prices after more Chinese cities relaxed COVID-19 restrictions, fuelling concerns over inflation in the world's third biggest crude importer.

The S&P BSE Sensex fell 0.57% to 62,507.88, as of 10:45 a.m. IST. The NSE Nifty 50 index lost 0.56% to 18,591.35.

Oil prices rose as much as 2% after Organization of the Petroleum Exporting Countries and allies, including Russia, held their output targets in a meeting on Sunday, while easing COVID restrictions in China boosted expectations of a rebound in fuel demand.

India is one of the largest importers of the commodity and oil prices have a bearing on nation's inflation, which eased to 6.77% in October.

All the sectoral indexes with high relative weightage on the Nifty 50, barring Nifty Metal, declined with Nifty IT and Nifty Oil & Gas shedding over 0.8%.

"The (slide) is more of a consolidation, after the kind of recovery we have seen on Nifty 50," Ajit Mishra, VP, Research at Religare Broking said, adding improved global and domestic demand outlook was supporting metal stocks.

Mishra expects Nifty 50 to rise to 19,500 in the next six months and sees 17,900-17,500 levels act as a cushion.

Also on investors radar was the central bank's monetary policy decision, which is due on Wednesday. The Reserve Bank of India is expected to raise interest rates by a smaller 35 basis points to 6.25%.

The decline in Indian shares is in contrast to other Asian equities which rose after more Chinese cities announced the easing of coronavirus curbs on Sunday. The MSCI Asia ex-Japan rose 1.46%.

Among individual stocks, Reliance Industries, which has a weightage of 11.36% on the Nifty, fell 1.18%, most in a week.

TVS Motor lost more than 3% amid block deals. ($1 = 81.4100 Indian rupees) (Reporting by Bharath Rajeswaran and Akansha Victor in Bengaluru; Editing by Janane Venkatraman and Eileen Soreng)