(RTTNews) - Indian shares fell sharply on Friday as hotter-than-expected U.S. CPI data for March coupled with hawkish comments from a slew of Federal Reserve officials stoked fresh uncertainty around Fed easing this year.
Heightened geopolitical tensions in the Middle East also spooked markets.
Oil prices jumped and gold scaled a record high on safe-haven demand as investors pondered the possibility of an attack on Israel by Iran or its proxies.
Following the alleged Israeli attack on the Iranian consulate in Damascus, Syria, reports suggest that the top Iranian leadership is planning a retaliatory attack on Israel within the next 48 hours.
It was said that Iran was still weighing the political risks of a direct attack on Israel.
The benchmark S&P BSE Sensex fell 793.25 points, or 1,06 percent, to 74,244.90 ahead of the start of Q4 domestic earnings season.
The broader NSE Nifty index settled 234.40 points, or 1.03 percent, lower at 22,519.40 after reports suggested that Mauritius-based foreign portfolio investors (FPIs) may face higher scrutiny post amendment in the India-Mauritius tax treaty.
ONGC, Titan Company, Power Grid Corp, Maruti Suzuki India and Sun Pharma lost 2-4 percent.
