Indian Shares End Sharply Lower As Oil Extends Surge

(RTTNews) - Indian shares fell sharply on Thursday to extend losses from the previous session as the prospect of a quick end to the war in West Asia thinned and trade tensions resurfaced. Inflation concerns returned to the fore as oil prices surged 6-7 percent in international markets amid tanker attacks in Iraqi waters, strikes across Lebanon, and growing fears of prolonged economic disruption. As the U.S. campaign of airstrikes in Iran entered its 13th day, there were no signs the conflict was subsiding. Iran has targeted oil fields and refineries in Gulf Arab nations and effectively stopped cargo traffic through the narrow Strait of Hormuz in a bid to exert pressure on the United States and Isreal to end the war. Two tankers believed to have involved in an STS transfer operation have been struck in Iraqi waters, prompting the nation's oil terminals to suspend operations and posing a threat to the safety of maritime navigation and oil activities in Iraqi territorial water. Oman has since shifted all vessels out of its main oil export terminal at Mina Al Fahal, which avoids the Strait of Hormuz. The terminal has been one of the last places for oil tankers to load Persian Gulf crude for global markets. On the trade front, the Trump administration has launched a Section 301 probe targeting excess manufacturing capacity in 16 major trading partners, a move aimed at rebuilding tariff pressure after the Supreme Court struck down a key tariff policy. The investigation could lead to new tariffs against countries including China, the European Union, India, Japan, South Korea and Mexico. Tracking weak cues from global markets, the benchmark BSE Sensex ended the session down 829.29 points, or 1.08 percent, at 76,034.42. The broader NSE Nifty index fell by 227.70 points, or 0.95 percent, to 23,639.15 amid concerns over supply chain disruptions stemming from the Iran-Israel conflict. An intraday recovery proved short lived after reports suggested that Iran will allow Indian-flagged ships to pass through the Strait of Hormuz safely. The market breadth was weak on the BSE, with 2,516 shares falling while 1,715 shares advanced and 173 shares closed unchanged. Among the prominent decliners, IndiGo, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Trent, UltraTech Cement, Larsen &Toubro, Bajaj Finance, Maruti Suzuki India and Mahindra & Mahindra plunged 2-4 percent. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.