Indian equity benchmarks closed lower on Friday amid higher crude oil prices, rising geopolitical tensions in West Asia, and mixed global market cues, which weighed on investor sentiment. The benchmark indices ended in negative territory, with financial and banking stocks witnessing the sharpest declines.
The 30-share BSE Sensex closed 455.59 points, or 0.58%, lower at 78,499.17 after falling more than 500 points during the session. The NSE Nifty 50 declined 65.35 points, or 0.27%, to settle at 24,570.65.
According to analysts, investors reduced exposure to riskier assets amid global uncertainties and rising energy prices, resulting in pressure on the domestic equity market.
Higher international crude oil prices emerged as a key factor behind the market decline. Escalating tensions in West Asia increased concerns over energy supplies, with the impact also reflected across global financial markets. India is one of the world's largest crude oil importers, and higher oil prices could increase the country's import bill, inflation, and corporate costs, prompting investors to adopt a cautious approach.
Financial services and private banking stocks recorded the steepest losses during the trading session. Among the Sensex constituents, Bajaj Finance was the worst-performing stock, declining about 5.9%. Bajaj Finserv, ICICI Bank, Axis Bank, HDFC Bank, Trent, Asian Paints, Titan and Tata Steel also closed lower.
Information technology and automobile stocks provided some support to the market despite weakness in banking and financial shares. Tata Consultancy Services (TCS), Infosys, Tech Mahindra, Mahindra & Mahindra (M&M), and Bharat Electronics Limited (BEL) ended higher.
IT stocks were supported by positive signals from the global technology sector, while automobile shares gained on expectations of b demand.
Among sectoral indices, the Nifty Financial Services and Nifty Private Bank indices recorded the steepest declines. In contrast, the Nifty IT and Nifty Auto indices closed higher. The broader market showed a mixed trend, with the Nifty Midcap Index rising 0.22%, while the Nifty Smallcap Index ended 0.05% lower.
