Mumbai, March 13 The benchmark indices Sensex and Nifty continued their downward trend in early trading on Friday, falling by nearly 1%, as the ongoing conflict in West Asia and rising oil prices continued to dampen investor sentiment.
Heavy selling in global markets, persistent outflows of foreign funds, and the weakening rupee also contributed to the bearish trend.
The 30-share BSE Sensex fell by 708.38 points or 0.93%, closing at 75,326.04. The 50-share NSE Nifty dropped by 222.05 points or 0.93%, closing at 23,417.10.
Among the 30 companies in the Sensex, Larsen & Toubro, Tata Steel, InterGlobe Aviation, UltraTech Cement, HDFC Bank, and Tech Mahindra were among the worst performers.
Power Grid, Hindustan Unilever, ITC, and Bajaj Finserv were among the gainers.
Brent crude, the global benchmark for oil, traded up 0.07% at $100.5 per barrel.
In Asian markets, the South Korean Kospi, the Japanese Nikkei 225 index, the Shanghai SSE Composite index, and the Hong Kong Hang Seng index were trading lower.
The US market closed sharply lower on Thursday. The Nasdaq Composite fell by 1.78%, the Dow Jones Industrial Average fell by 1.56%, and the S&P 500 fell by 1.52%.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 7,049.87 on Thursday. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 7,449.77.
"With the continued uncertainty surrounding the West Asian conflict, global markets are weak and in uncharted territory. The weakness in the US markets indicates that a rebound in the market is some time away. With Brent crude at around $100, investors are on the defensive.
"With FIIs continuing their sustained selling strategy, even large-cap blue-chips are under pressure," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
On Thursday, the Sensex fell by 829.29 points or 1.08%, closing at 76,034.42. Similarly, the Nifty fell by 227.70 points or 0.95%, closing at 23,639.15.