INDIA STOCKS-Indian shares slip as Trump's Tehran warning, oil surge rattle investors

By Bharath Rajeswaran

June 17 (Reuters) - India's benchmark indexes fell on Tuesday as investors stayed on edge after U.S. President Donald Trump urged Iranians to evacuate Tehran , stoking fears of a broader regional conflict amid ongoing Israel-Iran hostilities.

The Nifty 50 .NSEI was down 0.37% to 24,853.4 and the BSE Sensex .BSESN fell 0.26% to 81,583.3.

"Trump's remarks have spooked markets as investors are flying blind on how Middle East and trade tensions will play out," said Pramod Gubbi, co-founder of Marcellus Investment Managers.

Global stocks slipped, safe-haven gold rose and oil prices climbed after U.S. President Donald Trump cut short his visit to the Group of Seven summit in Canada while reports said he ordered the National Security Council to be on alert in the situation room. MKTS/GLOB

Rising crude prices hurt commodity importers like India, where oil makes up a large portion of the import bill. O/R

India's trade ties with the region may be limited, but an Iranian threat to block the Strait of Hormuz could trigger a huge damage for domestic economy, said Bernstein analysts Venugopal Garre and Nikhil Arela.

"A prolonged war risks imported inflation, stripping the government of tools to support growth and dragging markets lower," they said.

Twelve of the 13 major sectors logged losses, on the day. The broader smallcaps .NIFSMCP100 and midcaps .NIFMDCP100 fell about 0.7% each.

Among individual stocks, Tata Motors TAMO.NS fell 1.7%, adding to the 3.6% drop in the previous session, with multiple brokerages flagging the JLR margin guidance for fiscal 2026 was below market expectations.

Navin Fluorine NAFL.NS rose 4.2% after Jefferies reiterated "buy" citing strong earnings momentum due to a capex monetisation pick-up.

Mahanagar Gas MGAS.NS rose 3.1% after Nomura termed the city gas distributor its top pick in the sector.