Mumbai: Equity benchmark indices Sensex and Nifty buckled under heavy selling pressure to close with deep cuts on Thursday after investors pared exposure to financial, banking, and IT stocks as renewed tensions in West Asia faded the ceasefire-led optimism.
Weak trends in Asian and European markets, a jump in crude oil prices and uninterrupted foreign fund outflows also made investors jittery in the domestic market.
Snapping its five-session winning run, the 30-share BSE Sensex dropped 931.25 points or 1.20 per cent to settle at 76,631.65.
During the day, it dived 1,215 points or 1.56 per cent to 76,347.90.
The 50-share NSE Nifty declined 222.25 points or 0.93 per cent to end at 23,775.10.
The ceasefire deal appeared to be at risk after Iran closed the Strait of Hormuz again in response to Israeli attacks on Lebanon.
From the 30-Sensex firms, InterGlobe Aviation, Larsen & Toubro, Eternal, HDFC Bank, ICICI Bank and Kotak Mahindra Bank were among the major laggards.
On the other hand, Bharat Electronics, Power Grid, NTPC and Tata Consultancy Services were among the gainers.
The BSE SmallCap Select index climbed 0.26 per cent, and the MidCap Select index went up by 0.15 per cent.
Among sectoral indices, BSE Top 10 Banks tumbled 1.86 per cent, Private Banks index (1.75 per cent), Bankex (1.58 per cent), Financial Services (1.41 per cent), PSU Bank (1.21 per cent), Services (1.04 per cent) and MidSmall Private Banks Quality Tilt (0.88 per cent).
However, Capital Goods jumped 1.64 per cent, Metal (1.30 per cent), Power (1.27 per cent), Hospitals (0.75 per cent), Healthcare (0.74 per cent), Utilities (0.69 per cent), Telecommunication (0.42 per cent).
The rupee settled with a marginal gain of 3 paise at 92.51 against the US dollar on Thursday, backed by a weak American currency, even as the situation in West Asia remains fragile, keeping investors wary of the opening of the Strait of Hormuz.
Brent crude, the global oil benchmark, jumped 3.27 per cent to $97.85 per barrel.
FIIs offloaded equities worth Rs 2,811.97 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 4,168.17 crore.
On Wednesday, the Sensex jumped 2,946.32 points or 3.95 per cent to settle at 77,562.90. The Nifty soared 873.70 points or 3.78 per cent to end
at 23,997.35.