Mumbai, March 6 The benchmark indices Sensex and Nifty in the Indian stock market fell by over 1% on Friday after a day of relative calm, as the conflict in the Middle East entered its seventh day, driving up crude oil prices.
Weakness in US equities, a subdued trend in European markets, and continued outflows of foreign funds also dampened sentiment.
The 30-share BSE Sensex fell by 1,097 points, or 1.37%, to close at 78,918.90. During the day, it fell by 1,203.72 points, or 1.50%, to 78,812.18.
The 50-share NSE Nifty dropped by 315.45 points, or 1.27%, to end at 24,450.45.
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 benchmark for oil, rose by 2.53% to $87.57 per barrel.
"Indian equity markets continued their downward trend following the previous session's relief rally, as escalating US-Iran tensions disrupted key Middle Eastern oil and gas supplies, driving up crude prices. 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.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index closed higher.
Markets in Europe were trading in negative territory.
The US market closed lower on Thursday.
Foreign Institutional Investors (FIIs) sold 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%, to close at 80,015.90, ending its four-day decline. The Nifty climbed 285.40 points, or 1.17%, to end at 24,765.90, ending its three-day falling streak.
