Middle East tensions trigger sharp losses in Indian stock markets
Mumbai — Indian equity markets ended sharply lower on Friday as escalating tensions in the Middle East rattled investor sentiment and triggered broad selling across sectors.
The benchmark BSE Sensex fell 1,097 points, or 1.37 percent, to close at 78,918, while the NSE Nifty declined 315 points, or 1.27 percent, to settle at 24,450. Banking stocks faced significant pressure, with the Nifty Bank index dropping 2.15 percent to finish at 57,783.
Broader market indices also ended in negative territory alongside the benchmark indices. The Nifty Midcap 100 index fell 0.63 percent, the NSE Smallcap 100 declined 0.11 percent and the Nifty Next 50 slipped 0.34 percent.
Microcap stocks showed relatively greater resilience during the session, with the Nifty Microcap 250 index edging down just 0.08 percent.
Most sectoral indices ended lower, with only the FMCG and IT sectors recording modest gains. Among the worst performers were the Nifty Private Bank, PSU Bank and Realty indices, which declined 2.19 percent, 2.11 percent and 1.91 percent respectively.
Shares of several defense companies and a few public sector undertakings bucked the broader trend, rising by as much as 9 percent on the National Stock Exchange.
Market breadth remained weak during the session. Of the 4,357 stocks traded on the BSE, 1,833 advanced while 2,355 declined and 169 remained unchanged. A total of 180 stocks hit their upper circuit limits, while 162 stocks were locked in the lower circuit.
The Indian rupee also weakened slightly, ending the session down 0.09 percent at 91.84 against the U.S. dollar.
Oil prices surged amid the escalating conflict after Iran reportedly launched missiles and drones across the Gulf region, striking an oil refinery in Bahrain. Brent crude briefly climbed above $86 a barrel during intraday trading, while U.S. crude settled above $81 per barrel after jumping about 8.5 percent in the previous session.
Analysts said the Nifty index continues to have key support around the 24,500 level. For the Nifty Bank index, resistance levels are seen near 59,000 and 58,500.
Market volatility also rose sharply, with the India VIX climbing more than 11 percent from the previous close, reflecting growing investor nervousness and a shift toward risk-averse positioning. (Source: IANS)
