WASHINGTON (dpa-AFX) - Indian shares fell notably on Thursday as a sharp rise in oil prices to four-year highs fueled inflation concerns.
Sentiment was also shaped by the U.S. Federal Reserve's status-quo decision on interest rates for the third straight meeting.
The Fed on Wednesday held rates on hold, as was widely expected, in the most divided FOMC vote since October 1992.
Concluding his final news conference in the role, Fed Chair Jerome Powell said that the energy price surge has not yet peaked and that a prolonged oil shock could intensify its effect on the global economy and monetary policy outlook.
Oil prices have jumped to their highest since 2022 amid stalled U.S.-Iran talks and concerns that supply disruptions could persist longer than initially expected.
Media reports suggested that the U.S. is preparing to launch a series of 'short and powerful' strikes on Iran, which would bring an end to a fragile ceasefire.
Tehran released new visuals showcasing troop preparations and combat readiness, warning that any escalation could lead to serious consequences.
The U.S. is also seeking international help to restore freedom of navigation in the Strait of Hormuz.
Two months into the war, the closure of the waterway has taken about a seventh of the world's oil supply offline.
The benchmark BSE Sensex hit an intraday low of 76,258.86 before recouping some losses to close down 582.86 points, or 0.75 percent, at 76,913.50.
The NSE Nifty index ended down 180.10 points, or 0.74 percent, at 23,997.55, after having hit a low of 23,796.85 earlier.
The BSE mid-cap and small-cap indexes fell 1 percent and half a percent, respectively.
The market breadth was weak on the BSE, with 2,532 shares declining while 1,649 shares rose and 156 shares closed unchanged.
Among the prominent decliners, Mahindra & Mahindra, UltraTech Cement, Trent, Larsen & Toubro, Tata Steel, Hindustan Unilever and Eternal tumbled 2-3 percent.
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