Indian shares fall as investors await details on Iran sanctions

Indian shares fell on Monday, tracking subdued global markets, as investors stayed cautious ahead of the release of details about likely U.S. sanctions on Iran.

U.S. Treasury Secretary Scott Bessent is due to hold a press conference at 1800 GMT on Monday, after threatening to impose “the toughest sanctions in history” on Iran. In turn, Iran has vowed to shut down all oil exports from the Gulf “if the economic war continues.”

India’s Nifty 50 fell 0.14% to 24,219.05 and the Sensex lost 0.22% to 77,369.11. The indexes dropped about 1.3% in the last two weeks, as investors assessed the potential implications of the Middle East conflict on inflation and bond yields.

The nearly six-month-old war between the U.S. and Iran has led to a surge in energy prices globally, driving inflation fears.

Global stocks slipped on Monday and oil prices eased to $93 per barrel.

Eleven of the 16 major sectors fell in India, with the broader small-caps dropping 0.3% and mid-caps rising 0.1%.

Heavyweight financials fell 0.4%, while information technology stocks rose 0.2% in a mixed session.

Investors will keep a close eye on the Federal Reserve chief’s address at the Jackson Hole Symposium later this week for indications on future rate actions.

Gold financiers Muthoot Finance and Manappuram Finance rose 6.2% and 2.1%, as gold prices hit their highest in over three months.

Shares of sugar companies extended last week’s jump on higher prices ahead of festival season and weak monsoon, while rice-exporters gained on strong export demand.

Vishal Mega Mart jumped 9.7% after re-appointing Gunender Kapur as managing director and CEO.

Apollo Tyres rose nearly 1% as brokerage firm UBS upgraded it to “buy” from “neutral” on improving earnings outlook.