Indian equity markets closed sharply lower on Friday as escalating tensions in the Middle East weighed heavily on investor sentiment.
At the closing bell, the BSE Sensex declined 1,097 points, or 1.37 per cent, to settle at 78,918, while the Nifty 50 dropped 315 points, or 1.27 per cent, to close at 24,450.
Banking stocks witnessed significant selling pressure, with the Nifty Bank index falling 2.15 per cent to 57,783.
Broader markets also ended lower in line with the benchmark indices. The Nifty Midcap 100 index declined 0.63 per cent, while the NSE Smallcap 100 slipped 0.11 per cent. The Nifty Next 50 index also fell 0.34 per cent.
However, shares of microcap companies showed some resilience, with the Nifty Microcap 250 index edging down just 0.08 per cent.
Among sectoral indices, most sectors closed in negative territory. Nifty Private Bank, PSU Bank and Realty were the top losers, declining 2.19 per cent, 2.11 per cent and 1.91 per cent, respectively. FMCG and IT stocks were the only sectors to register marginal gains.
Meanwhile, shares of several defence companies and select public sector undertakings rallied by as much as 9 per cent on the National Stock Exchange (NSE).
Market breadth remained negative. Of the 4,357 stocks traded on the BSE, 1,833 advanced, 2,355 declined, and 169 remained unchanged. As many as 180 stocks hit the upper circuit, while 162 stocks touched the lower circuit.
Oil prices surged sharply amid the ongoing conflict in the Middle East after Iran launched missiles and drones across the Gulf, reportedly striking an oil refinery in Bahrain.
Brent crude oil touched an intraday high above 86 dollars per barrel, while US crude oil settled above 81 dollars per barrel after surging around 8.5 per cent overnight.
Analysts noted that 24,500 remains a key support level for the Nifty index, while 59,000 and 58,500 are seen as important resistance levels for the Nifty Bank index.
Market volatility also rose significantly, with the India VIX index climbing more than 11 per cent from the previous close, indicating growing nervousness among investors and a shift toward risk-averse positions.
-IANS
