(RTTNews) – Indian shares fell notably on Tuesday as rising oil prices amid escalating Middle East tensions raised concerns over a possible interest-rate hike by the U.S. Federal Reserve.
Brent crude futures neared $100 a barrel after Iran threatened to retaliate against any new U.S. attacks on its assets and Saudi-led coalition forces vowed a resolute response to a wave of attacks from Houthi rebels.
Traders also watched for details of an Iranian deal with Oman to manage shipping through the Strait of Hormuz.
Rising energy prices mean higher input costs and inflationary pressures for several Indian companies.
The benchmark 30-share BSE Sensex fell 555.23 points, or 0.73 percent, to 75,577.58, while the NSE Nifty index dropped 144.05 points, or 0.61 percent, to 23,635.10.
However, the BSE mid-cap and small-cap indexes rose 0.3 percent and 0.2 percent, respectively.
The market breadth was weak on the BSE, with 2,280 shares falling while 2,102 shares rose and 227 shares closed unchanged.
Among the prominent decliners, Maruti Suzuki India, Sun Pharma, HDFC Bank, Reliance Industries, Kotak Mahindra Bank, UltraTech Cement, Axis Bank and ICICI Bank fell 1-2 percent.
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