Indian benchmark indices declined in early trade on Friday as renewed tensions between the United States and Iran triggered caution across global financial markets and pushed crude oil prices higher.
The BSE Sensex dropped more than 500 points during the morning session to touch an intraday low of 77,291.72, while the NSE Nifty slipped below the 24,200 mark.
Banking, automobile and oil-linked stocks faced heavy selling pressure.
Shares of HDFC Bank, Axis Bank, ICICI Bank, Mahindra & Mahindra, Tata Motors, Maruti Suzuki, Eicher Motors and Shriram Finance were among the major drags on the benchmark indices.
Sectoral indices linked to private banks, PSU banks, automobiles and oil & gas also traded lower during the session.
Defensive sectors such as IT, pharmaceuticals, chemicals and healthcare managed to stay in positive territory despite the broader market weakness.
Market analysts said geopolitical developments in West Asia continued to influence investor sentiment. They noted that the fragile ceasefire between Washington and Tehran has recently faced renewed pressure.
According to reports, Iran accused the US of violating the ceasefire. Iranian authorities alleged that American forces targeted vessels and locations linked to the Strait of Hormuz.
The US, on the other hand, said its actions were retaliatory following an alleged firing by Iranian forces on American naval ships passing through the region.
Iranian authorities claimed that US strikes targeted an oil tanker, another vessel and civilian areas near the Strait of Hormuz and mainland Iran.
President Donald Trump said the ceasefire remained operational. He also said Washington was awaiting Tehran’s response to its latest peace proposal.
Global crude oil prices climbed sharply after the escalation. Brent crude rose above $102 per barrel, while US West Texas Intermediate crude approached $99 per barrel.
Asian equity markets also remained under pressure, with major indices such as the Nikkei, Hang Seng and KOSPI trading lower.
Wall Street had also ended the previous session in negative territory. Both the S&P 500 and Nasdaq indices recorded declines.
Benchmark indices in India remained weak during the session. Despite this, analysts said the broader market has continued to show resilience in recent sessions. They added that midcap stocks have outperformed even at elevated valuations.
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