BENGALURU: Indian shares closed lower in volatile trading on Thursday as tensions over Ukraine outweighed the impact of the US Federal Reserve’s less-than-feared hawkish stance, reflected in the minutes of its last policy meet.

The NSE Nifty 50 index fell 0.1% at 17,304, while the S&P BSE Sensex was down 0.18% at 57,892.01

Russian-backed rebels and Ukrainian forces traded accusations on Thursday that each had fired across the ceasefire line in eastern Ukraine, raising alarm at a time when Western countries have warned of the possibility of a Russian invasion any day.

“Any escalation in the conflict between Russia and Ukraine will make Indian markets very volatile,” said Prashanth Tapse, vice president (research), Mehta Equities.

Market expectations for US rate hikes have come down following the Fed minutes, Tapse said, adding that if the Russia-Ukraine conflict did not settle, there was a chance the Fed might push its rate hike plans.