Markets skid as US-Iran tensions spook investors; log weekly fall
Mumbai: Snapping its three-session winning run, the BSE Sensex tumbled 407 points Friday as rising tensions between the US and Iran soured risk appetite globally.
The 30-share BSE gauge settled 407.14 points, or 1.03 percent, lower at 39,194.49. Similarly, the broader NSE Nifty slumped 107.65 points, or 0.91 percent, to 11,724.10.
During the week, the Sensex declined 257.58 points or 0.65 percent, and the Nifty lost 99.2 points or 0.83 percent.
Global markets spiraled lower while crude oil prices spurted after reports said US President Donald Trump had approved military strikes against Iran, but later decided against it.
Geopolitical tensions in the Middle East have ratcheted up following attacks on two oil tankers and shooting down of a US surveillance drone.
A weakening rupee and ongoing trade concerns further weighed on domestic market sentiment, traders said.
Yes Bank was the top loser in the Sensex pack Friday, dropping 4.36 percent.
Other losers included Maruti, HDFC, Hero MotoCorp, Sun Pharma, HUL, Kotak Bank, Coal India, RIL, TCS, and Bharti Airtel, shedding up to 3.39 percent.
SBI, IndusInd Bank, Vedanta, NTPC, M&M and Axis Bank finished with gains of up to 1.28 percent.
"Indian markets were plagued by dual domestic and global concerns, with rising tensions and rising crude oil prices related to Iran, as well as concerns over looming trade war sparring with the US on the global front.
"Domestically, the Southwest monsoon which is the major source of water for India's farms was delayed by a week leading to 43 percent deficit for the month of June... Crude rose by 4 percent in the last week, which is expected to impact India's fiscal balance," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
Sectorally, BSE auto, energy, telecom, FMCG, healthcare, tech, oil and gas, finance and realty indices declined up to 1.32 percent.
Power and basic materials indices ended up to 0.10 percent higher.
The BSE midcap index fell 0.38 percent, while the smallcap gauge bucked the weak market trend and rose 0.14 percent.
Brent crude futures, the global oil benchmark, rose 0.51 percent to USD 64.78 per barrel.
While bourses in Shanghai, Hong Kong, Tokyo, and Seoul ended on a weak note, equity markets in Europe were trading in the green in early deals.
On the currency front, the Indian rupee depreciated 11 paise to 69.55 against the US dollar intra-day.
