Hyderabad: The Sensex falls sharply on Friday, dropping 1,097 points as rising tensions in West Asia weakened investor sentiment in Indian equity markets.
The conflict involving Israel, Iran and the United States entered its seventh day, which increased global uncertainty and triggered selling pressure in stocks.
The BSE Sensex declined 1,097 points, or 1.37 per cent, to close at 78,918. Meanwhile, the Nifty 50 fell 315 points, or 1.27 per cent, to settle at 24,450.
Banking stocks faced heavy selling during the session. As a result, the Nifty Bank index dropped 2.15 per cent and ended at 57,783.
The broader markets also followed the weak trend. The Nifty Midcap 100 index slipped 0.63 per cent. Likewise, the Nifty Smallcap 100 index declined 0.11 per cent.
The Nifty Next 50 index also moved lower and dropped 0.34 per cent.
Sensex falls as global tensions pressure markets
However, microcap stocks showed some resilience during the session. The Nifty Microcap 250 index edged down only 0.08 per cent.
Most sectoral indices ended in negative territory. However, the FMCG and IT sectors recorded marginal gains.
Among the worst performers were private banks, PSU banks and realty stocks. These sectors declined 2.19 per cent, 2.11 per cent and 1.91 per cent respectively.
Meanwhile, shares of several defence companies and some public sector undertakings rallied up to nine per cent on the National Stock Exchange.
Market breadth remained negative on the Bombay Stock Exchange. Out of 4,357 stocks traded, about 1,833 advanced while 2,355 declined. Meanwhile, 169 stocks remained unchanged.
Around 180 stocks hit the upper circuit during the session. At the same time, 162 stocks touched the lower circuit.
Global tensions also affected currency and commodity markets. The Indian rupee weakened slightly and ended 0.09 per cent lower at 91.84 against the US dollar.
Crude oil prices surged after Iran launched missiles and drones across the Gulf. The strikes reportedly targeted an oil refinery in Bahrain.
As a result, Brent crude rose above $86 during intraday trade. Meanwhile, US crude closed above $81 per barrel after surging about 8.5 per cent overnight.
Analysts said 24,500 remains a key support level for the Nifty index. For the Nifty Bank index, major resistance levels remain near 59,000 and 58,500.
Market volatility also increased sharply. The India VIX rose more than 11 per cent from the previous close.
The rise in volatility reflected growing nervousness among investors and a shift toward risk-averse positions.
