Indian Shares Give Up Early Gains To End Flat

(RTTNews) - Indian shares gave up early gains to end on a flat note on Thursday as traders focused on inflation risks stemming from higher energy prices and supply disruptions linked to the Iran war.

While softer-than-expected U.S. inflation data eased concerns about near-term Federal Reserve interest-rate hikes, there are fears that higher energy prices as a result of mounting geopolitical risks in the Middle East could keep global interest rates elevated.

Brent crude futures stayed close to one-month highs after media reports suggested that U.S. President Donald Trump is leaning toward further expanding U.S. military operations in Iran, including sending ground forces and the possible seizure of Kharg Island, Iran's primary oil export terminal.

Meanwhile, Iran said it has no plans for negotiations and remains focused on its defense. Iran's top negotiator, Mohammed Bagher Ghalibaf, has declared that the county's armed forces have "complete freedom of action" against the "enemy's aggression".

Iran is fighting an "existential war" against the United States as Washington pursues objectives that extend beyond changing Iran's government, Ghalibaf said.

The 30-share BSE Sensex edged up by 1.44 points to close at 77,18.87, while the NSE Nifty index finished 5.75 points, lower at 24,072.75.

Financials and insurance stocks came under heavy selling pressure, offsetting support from information technology stocks.

In the broader market, the BSE mid-cap index fell 0.3 percent while the small-cap index inched up 0.1 percent.

The market breadth was weak on the BSE, with 2,222 shares declining while 2,015 shares rose and 204 shares closed unchanged.

ICICI Prudential Life Insurance tumbled 3.2 percent despite positive Q1 show. ICICI Lombard plunged 10.5 percent as it reported a 46 percent year-on-year decline in Q1 FY27 profit after tax.

BHEL jumped 4.1 percent and ABB India sored 6.5 percent on encouraging quarterly results.

IT stocks ended broadly higher, with Tech Mahindra rising 1.2 percent and HCL Technologies climbing 1.7 percent.