(RTTNews) - Indian shares traded lower on Thursday as optimism surrounding the U.S.-Iran ceasefire waned.
Tehran claimed that three clauses of the ceasefire proposal have been contravened. These include the denial of the Islamic Republic's right to enrich uranium, Israel's continued attacks on Lebanon and a drone's entry into Iranian airspace.
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.
Iran has reportedly tightened its control over maritime movement through the Strait of Hormuz after U.S. President Donald Trump said U.S. forces will remain in the Persian Gulf region till Iran complies with the truce.
The benchmark BSE Sensex was down 660 points, or 0.9 percent, at 76,907 as investors grew wary of potential escalation in the Middle East conflict.
The broader NSE Nifty index dropped 150 points, or 0.6 percent, to 23,847.
Among the prominent decliners, HDFC Bank, IndiGo, Larsen & Toubro, Mahindra & Mahindra, Infosys and Eternal all were down around 2 percent.
Tata Consultancy Services was marginally lower ahead of its Q4 earnings results scheduled for today.
Anand Rathi Wealth gained 2 percent and GM Breweries rallied 2.4 percent ahead of their earnings results.
NTPC rose 1.3 percent after signing a pact with Electricite de France (EDF) for cooperation in nuclear power generation projects.
KEC International surged 3 percent on bagging new orders worth Rs. 2,518 crore across various segments.
RITES climbed 2.6 percent on securing a Rs. 119 crore Letter of Acceptance from National Aluminium Company Limited for providing project management consultancy (PMC) services.
RedTape added 1.2 percent after it acquired the rights to the international sports footwear brand SPRANDI across India, Nepal, Bhutan and Sri Lanka.
Bosch added 1 percent after its board approved the acquisition of a 100 percent stake in Bosch Chassis Systems India from its group entities for Rs. 9,068.68 crore.
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