Indian shares extend losing run on fading hopes of Mideast peace deal

Indian benchmarks extended their decline on Tuesday, according to Business Recorder, as hopes of an early end to the Iran conflict faded. The Nifty 50 closed 0.55% lower at 24,154.9, while the BSE Sensex dropped 0.63% to 77,235.46. Twelve of 16 major sectors retreated, and mid-caps lost 0.4%.

Iran has threatened a fully offensive military posture after efforts to negotiate a lasting end to its war with the US stalled, a senior Iranian official told Reuters on Monday. The United States also declined to renew a short-term truce that has lapsed. Brent crude traded close to $91 a barrel after gaining around 9% in under two weeks, which could revive inflation concerns in India, a major oil importer.

Overseas investors have already sold a record $25 billion of local shares in 2026, and higher US bond yields are making emerging markets less appealing. The IT index slid 1.9%, the steepest sector decline, and it earns much of its revenue from the United States. Milky Mist surged 29.6% on its trading debut.