Indian Shares Tumble Amid Doubts Over US-Iran Ceasefire

(RTTNews) - Indian shares tumbled on Thursday as confusion prevailed over the U.S.-Iran truce terms.

The U.S. dollar index consolidated above the 99.00 level and oil prices were up more than 3 percent as Iran halted the passage of oil tankers through the Strait of Hormuz after accusing the United States of violating three clauses of the 10-Point Proposal.

Tehran, which has emerged from the battle with control of the Strait of Hormuz, called U.S. talks 'unreasonable' following Israeli strikes on Lebanon.

Amid a sharp escalation in violence, U.S. Vice President has clarified that the ceasefire agreement did not include Lebanon, calling the confusion a "misunderstanding" by Iranian negotiators.

U.S. President Donald Trump announced that the U.S. military will remain in and around Iran until the "real agreement" on a ceasefire "is fully complied with", warning of more conflict otherwise.

"The U.S. must choose ceasefire or continued war via Israel. It cannot have both. The world sees the massacres in Lebanon. The ball is in the U.S. court, and the world is watching whether it will act on its commitments," Iran Foreign Minister Araghchi said in a post on X.

The benchmark BSE Sensex slumped 931.25 points, or 1.20 percent, to 76,631.65, after having surged 4 percent the previous day following the U.S.-Iran ceasefire announcement and the Reserve Bank of India's status-quo monetary policy decision.

The NSE Nifty index plunged 222.25 points, or 0.93 percent, to 23,775.10 amid continued FII selling, while the BSE mid-cap and small-cap indexes gained 0.1 percent and 0.3 percent, respectively.

The market breadth was slightly positive on the BSE, with 2,156 shares rising while 2,134 shares declined and 130 shares closed unchanged.

Among the prominent decliners, IndiGo tumbled 3.6 percent and Larsen & Toubro shed 2.8 percent, while Titan Company, SBI, Kotak Mahindra Bank, ICICI Bank, HDFC Bank and Eternal all fell around 2 percent.