Indian equity markets closed sharply lower on Friday, with heavy selling in financial stocks dragging benchmark indices into the red amid rising geopolitical tensions in West Asia and cautious global sentiment.
The BSE Sensex fell 516.33 points, or 0.66%, to settle at 77,328.19, while the NSE Nifty 50 dropped 150.50 points, or 0.62%, to close below the 24,200 mark at 24,176.15.
According to market data reported by the Financial Express, banking and financial counters remained among the biggest losers of the session, with State Bank of India falling nearly 7%. Bajaj Finance, Axis Bank and HDFC Bank also ended lower.
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The decline came as investors reacted to renewed uncertainty surrounding tensions between the United States and Iran near the Strait of Hormuz, a development that also pushed global oil prices higher.
Financial stocks lead sell-off as global tensions weigh on sentiment
Markets started off on a weak note and continued to remain under pressure through the trading day. The Nifty index was down 158 points to open at 24,169, while the Sensex was off more than 500 points from the day's start.Investor sentiments were negative due to apprehensions over rising crude oil prices and geopolitical tensions in the market.
Brent crude futures rose above $102 a barrel, while WTI crude was trading close to $97 a barrel amidst fears of disruption of supply due to the situation in West Asia. Asian markets were also down, with the Nikkei in Japan and the Kospi in South Korea experiencing declines today.
U.S. markets, too, saw their Wall Street indices ending on a lower note due to developments between Washington and Tehran.
Titan, Infosys among gainers despite weak market mood
While the general market environment was bearish, there were some stocks that ended in the green. Titan Company stood out among the top performers, gaining around 4%, along with Asian Paints, Adani Ports, and Infosys.
In terms of sectors, the transport and tourism-related stocks had shown resistance in the last session; however, the overall sell-off during Friday dominated the performance of the select sector stocks.
The foreign institutional investors (FIIs) continued to be net sellers, reducing their positions by shares valued at ₹340.89 crore on May 7, according to provisional NSE figures. The domestic institutional investors (DIIs) accumulated shares worth ₹441.07 crore.
Oil, gold and global cues remain in focus
Safe-haven buying continued to support gold prices amid geopolitical uncertainty.
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The price of 24-carat gold in India rose to around ₹1.52 lakh per 10 grams, while silver prices climbed above ₹2.6 lakh per kilogram.
Market participants are now expected to closely track further developments in the Middle East, movements in crude oil prices and foreign institutional activity for near-term direction.
Analysts believe volatility may remain elevated in the coming sessions if tensions surrounding the Strait of Hormuz continue to escalate.
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