Indian benchmark indices Sensex and Nifty were little changed as an intensifying Middle East conflict pushed crude oil prices above the $100-per-barrel mark. Investors are also awaiting key US data ahead of the Federal Reserve's policy meeting next week.
The Sensex fell 51 points, or 0.1%, to hit an intraday low of 74,666.10, while the Nifty declined 27 points, or 0.1%, to a day's low of 23,404.35.
Both indices settled at three-month lows in the previous session as Brent crude oil crossed $100. The Nifty and Sensex have now declined in seven of the last eight sessions, losing around 3.1% each during this period. Higher oil prices have also kept investors nervous ahead of US inflation data, which is expected to influence the Federal Reserve's rate decision next week, according to two traders.
Adding to geopolitical concerns, Iran said it attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers in the largest attacks on shipping in the six-month-old conflict.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market remains vulnerable to further correction as macroeconomic fundamentals continue to deteriorate. He pointed to Brent crude above $101 and the US 10-year yield at 4.83%, while noting that the probability of a Fed rate hike this month has increased.