Mumbai: Equity benchmark indices Sensex and Nifty tumbled nearly 1 per cent on Friday as weak global markets and a spike in Brent crude oil prices after Israel attacked Iran’s capital weighed on investor sentiment.
Falling for the second day in a row, the 30-share BSE Sensex dived 573.38 points or 0.70 per cent to settle at 81,118.60. During the morning trade, it tanked 1,337.39 points or 1.63 per cent to 80,354.59.
As many as 2,469 stocks declined while 1,516 advanced and 137 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 169.60 points or 0.68 per cent to 24,718.60.
The market capitalisation of BSE-listed firms eroded by Rs 8,35,799.85 crore to Rs 4,47,21,343.34 crore ($5.19 trillion) in two days.
On a weekly basis, the BSE benchmark tanked 1,070.39 points or 1.30 per cent, and the Nifty declined 284.45 points or 1.13 per cent.
Investors stayed away from riskier assets amid fears of a full-blown war between Israel and Iran and foreign fund outflows.
“Rising tensions in the Middle East after Israel attacked key Iranian areas drove investors to safe-haven assets like gold as riskier equities continued to face battering. Along with fresh concerns of the US likely to impose unilateral tariffs over next few weeks and higher valuations of domestic equities resulted in consolidation of markets,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Among the Sensex firms, Adani Ports, ITC, State Bank of India, IndusInd Bank, HDFC Bank, Titan, Kotak Mahindra Bank and UltraTech Cement were the major laggards.
On the other hand, Tech Mahindra, Tata Consultancy Services, Sun Pharma and Maruti were the gainers.
The BSE midcap gauge declined 0.32 per cent and smallcap index dipped 0.30 per cent.
Among BSE sectoral indices, services tumbled 2.06 per cent, bankex (1.01 per cent), FMCG (0.94 per cent), financial services (0.85 per cent), metal (0.81 per cent) and power (0.75 per cent). Healthcare index and realty were the only winners.
“Indian equity benchmarks experienced downward pressure, driven by weak global cues and foreign institutional outflows. Market sentiment was notably impacted by heightened geopolitical tensions following Israel’s military strike on Iran, which significantly increased risk aversion among investors. Although India’s CPI for May eased below the RBI’s comfort threshold, offering a positive macro signal, this was largely overshadowed by external headwinds.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled lower.
European markets were quoting lower. US markets ended in positive territory on Thursday.
Global oil benchmark Brent crude jumped 8.39 per cent to $75.20 a barrel
Foreign Institutional Investors offloaded equities worth Rs 3,831.42 crore on Thursday, according to exchange data.