CHENNAI: Indian equity markets ended sharply lower on Friday, mirroring the bearish sentiment across Asian peers, amid rising geopolitical tensions in the Middle East and a significant spike in crude oil prices. Escalating hostilities between Israel and Iran weighed heavily on investor sentiment, triggering broad-based selling across key indices.
BSE Sensex dropped 573.60 points or 0.70% to close at 81,118.60, after hitting an intraday low of 80,354.59. While, NSE Nifty50 fell 169.60 points or 0.68%, settling at 24,718.60.
The sell-off extended to the broader markets as Nifty Midcap 100 declined 0.24%, and Nifty Smallcap 100 ended 0.43% lower.
Sectoral indices witnessed mixed movement, with most ending in the red. The top losers were Nifty PSU Bank (-1.12%) and Nifty FMCG (-1.05%)
Other sectors under pressure included Metal, Financial Services, Auto, Energy, Pharma, Consumer Durables, and Oil & Gas
Among the Sensex constituents the major laggards were Adani Ports, ITC, IndusInd Bank, SBI, and HDFC Bank were the major drags, all slipping over 1% each. And the gainers included Tech Mahindra, TCS, Sun Pharma, and Maruti Suzuki bucked the trend to close in the green.
Global Cues and Commodities
Crude oil prices surged sharply in reaction to geopolitical developments. WTI Crude was last seen trading at $73.87 per barrel, up a steep 8.57%. The surge in oil prices raised concerns over inflationary pressures and their impact on India's import bill.
The India VIX, a gauge of market volatility, jumped 7.6% to 15.08, reflecting heightened uncertainty among investors.
Analysts believe that with escalating global tensions and rising crude oil prices, market sentiment is likely to remain cautious in the near term. Traders will be closely monitoring geopolitical developments and global central bank signals, particularly from the US Federal Reserve, for further direction.