Equity benchmark indices Sensex and Nifty extended their southward journey in early trade on Friday, tumbling nearly 1%, as the ongoing conflict in West Asia and surging oil prices continue to spoil investors' sentiment.
Sensex, Nifty Drop Nearly 1 Pc as West Asia Conflict, Surging Oil Prices Rattle Stock Markets
Heavy selling in global markets, persistent foreign fund outflows and weakness in the rupee also added to the bearish trend
Sensex, Nifty Drop
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Heavy selling in global markets, persistent foreign fund outflows and weakness in the rupee also added to the bearish trend.
The 30-share BSE Sensex tumbled 708.38 points or 0.93% to 75,326.04 in early trade. The 50-share NSE Nifty dropped 222.05 points or 0.93 % to 23,417.10.
From the 30-Sensex firms, Larsen & Toubro, Tata Steel, InterGlobe Aviation, UltraTech Cement, HDFC Bank and Tech Mahindra were among the biggest laggards.
Power Grid, Hindustan Unilever, ITC and Bajaj Finserv were among the gainers.
Brent crude, the global oil benchmark, traded 0.07% up at $ 100.5 per barrel.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading lower.
The US market ended sharply lower on Thursday. The Nasdaq Composite tanked 1.78% , Dow Jones Industrial Average tumbled 1.56% and S&P 500 dived 1.52%.
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Foreign Institutional Investors (FIIs) offloaded equities worth ₹ 7,049.87 crore on Thursday, according to exchange data. Domestic Institutional Investors (DII) however, bought stocks worth ₹ 7,449.77 crore.
"With the heightened uncertainty surrounding the West Asian conflict continuing, globally markets are weak and in unchartered territory. Weakness in the US markets indicate that rebound in the market is some time away. With Brent crude around $ 100, bulls are on the defensive.
"With the FIIs persisting with their sustained selling strategy, even large-cap blue-chips are under pressure," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
On Thursday, the Sensex tanked 829.29 points or 1.08% to settle at 76,034.42. Similarly, the Nifty fell by 227.70 points or 0.95% to close at 23,639.15.