Sensex, Nifty End Off Day's Lows

(RTTNews) - Indian shares fell on Monday, but ended off their day's lows as markets apparently took the U.S. strikes against nuclear targets in Iran in their stride and waited to see how Iran reacts and what happens to Tehran's nuclear program.

Oil prices gave up sharp early gains to turn flat after analysts said that Iran may be reluctant to close down the Strait of Hormuz because it uses the strait to transport its own crude, mostly to China.

U.S. President Donald Trump insisted the weekend attack had "obliterated" Iran's nuclear capabilities, but other officials said it was too soon to determine how significantly Tehran's nuclear program had been impacted.

Two Israeli officials have told the New York Times that Iran had moved 400 kgs of uranium and other equipment from the Fordow plant before the U.S. strikes.

But there was some consensus that U.S. strikes on Iran's nuclear facilities will delay Tehran's ability to develop nuclear weapons, which is a positive development in the short term.

Investors also cheered data that showed India's private sector activity expanded at the quickest pace in more than a year in June amid a record upturn in international sales.

Flash data compiled by S&P Global showed that the HSBC composite output index rose to 61.0 in June from 59.3 in May.

The benchmark 30-share BSE Sensex hit an intraday low of 81,476.76 before closing down 511.38 points, or 0.62 percent, at 81,896.79.

The broader NSE Nifty index ended down 140.50 points, or 0.56 percent, at 24,971.90, after having hit a low of 24,824.85 earlier.

The BSE mid-cap and small-cap indexes edged up 0.2 percent and 0.6 percent, respectively.

The market breadth was weak on the BSE, with 2,200 shares declining while 1,856 shares advanced and 184 shares closed unchanged.

Among the prominent decliners, Power Grid Corp, Maruti Suzuki India, HDFC Bank, ITC, TCS, Hindustan Unilever, Mahindra & Mahindra, HCL Technologies, Larsen & Toubro and Infosys fell 1-2 percent.