Indian Shares End Choppy Session Marginally Lower

(RTTNews) - Indian shares ended a choppy session slightly lower on Wednesday as investors reacted to mixed messaging over a possible U.S.-Iran peace deal.

Brent crude prices fell nearly 4 percent as U.S.-Iran talks continued despite new American attacks on missile sites and mine-laying ships in the Strait of Hormuz.

Traders and speculators appear hopeful that the United States and Iran could reach a framework agreement that would extend the ceasefire by 60 days and allow further talks on the re-opening of the Strait of Hormuz.

Some LNG tankers have reportedly passed through the Strait of Hormuz in recent days, helping ease supply concerns amid prolonged West Asia conflict.

As the Middle East conflict appeared to move toward a resolution, U.S. Secretary of State Marco Rubio cautioned that any accord would likely take a few days to finalize.

It seems there are unresolved issues surrounding Tehran's frozen assets and unrestricted passage through Hormuz.

Meanwhile, Iran condemned the self-defense strikes conducted by U.S. forces and said it would leave no act of aggression unanswered.

Iran's Islamic Revolutionary Guard Corps (IRGS) said that it targeted F-35 fighter jet and several drones after identifying "hostile aircraft" entering Iranian airspace.

It is feared that further military escalation could prompt Iran to retaliate against neighboring states.

In a written statement carried by state television, Iran's Supreme Leader Mojtaba Khamenei said regional countries would no longer be shields for U.S. bases.

Elsewhere, Israel's attacks on Tuesday resulted in 31 deaths, with over 120 strikes across south Lebanon.

Investors also fretted over oil-driven inflation and the potential impact on interest rates, with several Fed and ECB officials calling for faster action to tame stubborn inflation.

Closer home, the Indian rupee fell by 8 paise to 95.78 against the dollar in early trade, shifting investor attention to the upcoming RBI Monetary Policy Committee Meeting scheduled for June 3-5. Markets currently remain divided between a possible rate hike and a status quo decision.

The benchmark BSE Sensex swung between gains and losses before closing down 141.91 points, or 0.19 percent, at 75,867.80.

The NSE Nifty index finished marginally lower at 23,907.15 while the BSE mid-cap and small-cap indexes on the BSE surged 0.8 percent and half a percent, respectively.

The market breadth was strong on the BSE, with 2,279 shares rising while 1,937 shares declined and 178 shares closed unchanged.

Among the prominent decliners, HDFC Bank shares fell 2.6 percent after reports emerged that the private sector lender has made illegal payments to a state government department to attract large deposits.

Among those that gained, Indigo, Tata Steel, NTPC, Eternal and Power Grid Corp rallied 2-3 percent.