Indian Shares Seen Lower As Tensions Flare In The Middle East

(RTTNews) - Indian shares may drift lower on Wednesday as a recovery in global chipmaking stocks fizzled out, hopes for a U.S.-Iran peace deal faded and investors shifted focus to upcoming U.S. CPI data for valuable insights into market expectations for future interest rates.

Global markets are experiencing volatility as investors rotate out of tech and into more defensive plays.

The U.S. military has launched fresh strikes against Iran in a very strong, powerful response to the downing of a U.S. Army Apache helicopter off the Oman coast.

It was said that U.S. fighter jets struck Iranian air defense systems and radar sites near the Strait of Hormuz.

Iran also launched missiles and drones toward U.S. targets in the region and warned that "heavier and broader" attacks would follow if the United States continued aggression against Iran.

Iranian Foreign Minister Abbas Araghchi said that no attack or threat from the United States will be left unanswered. "Despite its defeats on the battlefield, the U.S. opted to test our determination," Araghchi wrote on X and also asked foreign forces to leave the region.

Benchmark indexes Sensex and Nifty rose around half a percent each on Tuesday to rebound from two-month lows on the back of easing geopolitical tensions and a U.S. federal court ruling that the fee of 1 lakh U.S. dollars for H-1B applications imposed by President Donald Trump was unlawful.

The rupee gained 20 paise to close at 95.41 against the dollar, drawing support from softer U.S. Treasury yields and likely intervention by the Reserve Bank of India.