Mumbai, March 6 Stock market benchmark indices Sensex and Nifty plunged by over 1 per cent on Friday after a day of relative calm, as the conflict in the Middle East entered its seventh day, driving up crude oil prices.
The 30-share BSE Sensex fell by 1,097 points, or 1.37 per cent, to close at 78,918.90. During the day, it dropped by 1,203.72 points, or 1.50 per cent, to 78,812.18.
The 50-share NSE Nifty declined by 315.45 points, or 1.27 per cent, to end at 24,450.45.
Weakness in US equities, a subdued trend in European markets, and relentless foreign fund outflows also dampened investor sentiment, analysts said.
From the Sensex pack, Eternal, ICICI Bank, Axis Bank, UltraTech Cement, HDFC Bank, State Bank of India, Bajaj Finserv, and Larsen & Toubro were among the major decliners.
Bharat Electronics, Reliance Industries, Sun Pharma, NTPC, Infosys, and HCL Tech were the gainers.
Brent crude, the global oil benchmark, jumped 2.53 per cent to USD 87.57 per barrel.
"Indian equity markets extended their decline following the previous session's relief rally, as escalating US-Iran tensions disrupted key Middle Eastern oil and gas supplies, driving crude prices higher. A sustained rise in oil prices could weigh on investor sentiment and adversely affect India's twin deficits, inflation trajectory, and the RBI's monetary stance," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
"Indian equity markets ended the session on a bearish note, with investors maintaining a cautious stance amid intensifying geopolitical tensions in the Middle East. Market volatility also increased sharply, with India VIX rising more than 11% from the previous close, reflecting growing nervousness among investors and a clear shift toward risk-averse positioning," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
The BSE midcap select index dropped 1.10 per cent and smallcap select index dipped 0.43 per cent.
BSE top 10 banks tanked 2.37 per cent, private banks index by 2.25 per cent, bankex by 2.14 per cent, financial services by 2.12 per cent, BSE PSU bank by 1.99 per cent and services by 1.35 per cent.
Capital Goods, industrials and power were the gainers.
A total of 2,304 stocks declined while 1,895 advanced and 175 remained unchanged on the BSE.
On the weekly front, the BSE benchmark tanked 2,368.29 points or 2.91 per cent, and the Nifty declined 728.2 points or 2.89 per cent.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended higher.
Markets in Europe were trading in negative territory. The US market ended lower on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,752.52 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 5,153.37 crore, according to exchange data.
On Thursday, the Sensex rebounded 899.71 points, or 1.14 per cent, to settle at 80,015.90, snapping its four-day decline. The Nifty climbed 285.40 points, or 1.17 per cent, to end at 24,765.90, ending its three-day falling streak.
