Hyderabad: The Indian equity markets ended sharply lower on Friday as rising tensions in West Asia weighed on investor sentiment.
The decline came amid the ongoing conflict involving Israel, Iran and the United States, which entered its seventh day.
The BSE Sensex fell 1,097 points, or 1.37 per cent, to close at 78,918. Meanwhile, the Nifty 50 dropped 315 points, or 1.27 per cent, to settle at 24,450.
Banking stocks came under heavy pressure during the session. Consequently, the Nifty Bank index declined 2.15 per cent to end at 57,783.
Sensex decline reflects broader market pressure
The broader markets largely moved in line with benchmark indices. The Nifty Midcap 100 index slipped 0.63 per cent.
Similarly, the Nifty Smallcap 100 index declined 0.11 per cent. The Nifty Next 50 index also dropped 0.34 per cent.
However, microcap stocks showed some resilience. The Nifty Microcap 250 index edged down only 0.08 per cent.
Most sectoral indices ended in the red. Still, the FMCG and IT sectors recorded marginal gains.
Among the worst performers were private banks, PSU banks and realty stocks. These sectors declined by 2.19 per cent, 2.11 per cent and 1.91 per cent respectively.
At the same time, shares of several defence companies and some public sector undertakings rallied up to nine per cent on the National Stock Exchange.
Market breadth remained negative. Out of 4,357 stocks traded on the Bombay Stock Exchange, about 1,833 advanced while 2,355 declined. Meanwhile, 169 stocks remained unchanged.
Around 180 stocks hit the upper circuit. At the same time, 162 stocks touched the lower circuit during the session.
Global tensions weigh on markets
The Indian rupee also weakened slightly. It ended 0.09 per cent lower at 91.84 against the US dollar.
Meanwhile, crude oil prices surged after Iran launched missiles and drones across the Gulf.
The strikes reportedly targeted an oil refinery in Bahrain. As a result, Brent crude rose above $86 during intraday trade.
At the same time, US crude closed above $81 per barrel after surging about 8.5 per cent overnight.
Analysts said 24,500 remains a key support level for the Nifty index.
For the Nifty Bank index, analysts placed major resistance levels near 59,000 and 58,500.
Meanwhile, market volatility increased sharply. The India VIX rose more than 11 per cent from the previous close.
The surge in volatility reflected growing nervousness among investors and a shift toward risk-averse positions.