** Indian shares fall and the rupee weakens as a spike in oil prices and Prime Minister Narendra Modi's call for fuel conservation and austerity measures raise concerns over the Iran war's economic fallout

** The Nifty 50 .NSEI and Sensex .BSESN lose 1% each

** Brent crude LCOc1 rises 4.1% to $105.5 a barrel after U.S. President Donald Trump calls Iran's response to Washington's peace proposal "unacceptable," dimming hopes of a quick resolution O/R

** Thirteen of 16 major sectors trade lower, while broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 shed 0.9% each

** Analysts say Modi's austerity push could weigh on FY2027 growth and hurt oil marketers, travel companies and jewellers, in the near term

** Oil marketing companies BPCL BPCL.NS, HPCL HPCL.NS and Indian Oil IOC.NS fall 2%-2.5%

** Jewellery stocks slump, with Titan TITN.NS, Senco Gold SENC.NS and Kalyan Jewellers JALN.NS down 6%-9%

** Travel-linked names weaken; IndiGo operator InterGlobe Aviation INGL.NS drops 4.7%

** Hyundai Motor HYUN.NS and Bank of Baroda BOB.NS buck the trend, rising 2.3% and 1.5% after upbeat quarterly results