Indian Shares End Lower As Oil Prices, Yields Rebound

(RTTNews) - Indian shares ended Friday's session notably lower as Brent crude prices spiked above $96 a barrel and global bond yields jumped amid expectations that U.S. interest rates will stay higher for longer.

The U.S. dollar rose to a 19-month high against major peers, buoyed by higher Treasury yields as traders weighed the chance of a larger-than-usual Federal Reserve rate hike next month.

Brent crude price steadied above $96 a barrel, after a nearly 3 percent rise in the previous session as attacks on Saudi energy infrastructure and Hormuz shipping disruptions offset signs of rising crude output.

Middle East supply risks moved back into focus after Iranian officials reported an attack on Sirik in Hormozgan province amid conflict with the U.S.

Four oil tankers were hit by explosions in the Strait of Hormuz after the vessels had ignored warnings and entered what Iran's military considers restricted areas of the strategic waterway.

Iran's Revolutionary Guards claimed they targeted a U.S. early-warning radar in Bahrain in response to attacks on Iranian telecom tower in southern Hormozgan province.

Meanwhile, U.S. President Donald Trump downplayed the prospects of a comprehensive diplomatic solution with Iran, halted the negotiation process that Vice President Vance was advancing, and instead accepted a stalemate characterized by "no war, no talks."

Trump also indicated he may use military force against Iran if U.S. allies and ships are threatened.

The benchmark 30-share BSE Sensex fell 318.55 points, or 0.39 percent, to 81,592.45 while the NSE Nifty index dropped 155.05 points, or 0.61 percent, to 25,144.30.

The BSE mid-cap and small-cap indexes slipped 0.2 percent and 0.3 percent, respectively.

The market breadth was weak on the BSE, with 2,459 shares falling while 1,971 shares rose and 242 shares closed unchanged.

Among the prominent decliners, Titan, Adani Ports, Bajaj Finance, HDFC Bank, Trent, NTPC, BEL, UltraTech Cement and Mahindra & Mahindra fell 1-2 percent.